CREDIT UNIONS ABLE TO OWN OR INVEST IN INSURANCE AGENCIES

Changes to The Credit Union Regulations, 1999, will now provide Saskatchewan credit unions with the ability to own or invest in insurance agencies and brokerages.

"Our government's response to the changing environment of financial services is to provide the legal framework that will let community-based credit unions compete effectively," Justice Minister Eric Cline said. "Our future is wide-open because this government is providing an environment for rural economic development in Saskatchewan."

Cline said recent amendments to the federal Bank Act have given banks the power to invest in, or own insurance brokerages and it is important to ensure that Saskatchewan credit unions have the same powers.

Cline said it is important to note that the changes to the regulations do not allow credit unions to sell life insurance or property and casualty insurance.

One of the changes included in The Credit Union Act, 1998, modernized business powers to allow credit unions to offer a broad range of financial and other services to members and non-members to put credit unions on a level playing field with banks. Credit unions were given the power to sell certain kinds of insurance that banks could sell. The Credit Union Act, 1998, provided that further insurance powers could be added by regulation.

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For More Information, Contact:

Debi McEwen Justice Regina Phone: (306)787-6043 Email: dmcewen@justice.gov.sk.ca