Credit unions suffer setback

THE credit union movement has suffered a severe setback in its battle to curb the power of the registrar of credit unions to regulate the sector.

The credit union movement had lobbied hard and successfully to have section 35A of the Central Bank Bill 2010, which would have given the registrar unlimited powers over credit unions, removed.

However, the provision has been reintroduced by the minister under section (2C) and the amended legislation is virtually the same as it was before.