Member Driven Technologies’ Post

ABCUL is delighted to collaborate with the Association of Financial Mutuals (AFM), the Building Societies Association (BSA), Co-operatives UK and the wider credit union sector in launching the ‘Purpose of Mutual and Co-operative Business in Society’ prospectus. This is a call to action for the next government to create a more robust and effective relationship between mutual and co-operative businesses, government, and society and to back organisations with purpose beyond profit. Our unified message is clear – the pivotal role that mutual and co-operative businesses play in building an inclusive, diverse, and competitive economy must be more front and centre for future government policy and strategy ABCUL has a clear mission and vision for credit unions to be the number one choice in safe savings and ethical and affordable lending alongside a renewed purpose of product and service innovation for 2024 and beyond. Credit unions are serving more consumers than ever before, and our sector stands ready to play a prominent role in this new vision for mutuals and co-operatives. #creditunions https://lnkd.in/eNXv_8yu

United Traders Sacco (UTS) Society, based in Machakos County, marks significant financial growth, with its balance sheet expanding to KSh 1.5 billion in 2023. Net loans, member deposits, and gross turnover all saw positive increases, reflecting the society's robust performance. During the 6th Annual Delegates Meeting, UTS Board Chairman Fredrick Ngumbi highlighted the society's achievements and challenges. Despite economic hardships, the board maintained stable interest rates for members, impacting financial performance. However, intense fund mobilization efforts led to reduced external borrowing, setting a strong foundation for future financial stability. Looking ahead, UTS aims for continued growth and sustainability outlined in its new 2024-2028 strategic plan. This includes enhancing service delivery, embracing digital banking, and mitigating risks through policy reviews. With a focus on member welfare and organizational excellence, UTS remains committed to its mission of empowering the community through financial services. #saccos #financial services #digitalbanking #hakunamatatamedia

US Banking Regulation Update - Long Term Debt US regulators have made further proposals to enhance the soundness and resilience of the US banking, co-signing new proposals which will require certain non-GSIB banking organizations with consolidated assets of $100 billion to maintain a larger layer of long-term debt (LTD). The proposed rule would improve the resolvability of these banking organizations in case of failure, and may reduce costs to the Deposit Insurance Fund, and mitigate financial stability and contagion risks by reducing the risk of loss to uninsured depositors. The proposal Requires firms with total assets greater than $100 billion, that are not G-SIBs to issue and maintain minimum amounts of long-term debt (LTD) that satisfies certain requirements. By augmenting loss-absorbing capacity, long term debt can provide banking organizations and banking regulators greater flexibility in responding to the failure of covered entities and covered Insured depository institutions. Martin Gruenberg, Chairman of the FDIC, commented in his statement “The proposed rule would provide for eligible debt instruments to incorporate features, such as subordinating this debt to all other creditors, including depositors, and a simple “plain vanilla” structure - not a complex financial instrument - that makes them best suited to the goal of supporting resolution. It is anticipated that as banks come into compliance over a transition period of several years they will replace existing funding sources, such as uninsured deposits, with long-term debt. Taking this dynamic into account and factoring in the existing long-term debt already issued by many covered institutions, the agencies concluded that the incremental long-term debt required under the proposal would marginally increase funding costs and may result in a decline of net interest margins of about 3 basis points. Since this debt is long-term, it will not be a source of liquidity pressure when problems become apparent. Unlike uninsured depositors, investors in this debt know that they will not be able to run when problems arise. The LTD requirement would come into full effect three years after the date on which a covered IDI first becomes subject to the proposed rule. The full amount of LTD Insured depositary institutions would be required to hold, however, will be phased in over this three-year period to reduce the potential for market disruption. It remains to be seen how this debt will be priced given recent market volatility and recent rating downgrades in the US banking sector, and particularly for those firms, that have not been particularly active in raising long term debt in recent years, for sure, some firms may well end up paying a higher price for their long-term debt. Regulators are accepting comments on these proposals through the end of November Further details can be found here. https://lnkd.in/eNzRVAfe

🗓On May 11, 2023, the British Columbia (BC) Money Services Business Act ( https://lnkd.in/dpQwAntd ) received royal assent.👑 📃 The Act establishes a new registration regime for money services businesses ("MSBs") and designates the BC Financial Services Authority ("BCFSA") as the provincial regulator for MSBs. 👆🏻It should be noted that although the Act has received Royal Assent, it has not entered into force yet.📌 🙌🏻Companies providing 💵financial services in BC do not need to obtain an additional MSB license from the #BCFSA for now. 🤝Lextensio team is keeping its finger on the pulse and looking forward to further guidance from BC regulators. ❓What will this Act mean for companies that have an #MSBlicense in Canada and are registered in British Columbia?🤔 🔵 Once the law comes into force, companies in British Columbia will be required to report certain activities to the Superintendent of Money Services Activities annually, which will be set out in the regulations, and will be required to register as an MSB with the BCFSA. 🔵 The BCFSA will also maintain a public register of registered MSBs in the province. 🔵 And many other improvements. 📩For more information on the planned changes, please do not hesitate to contact Lextensio for advice.💙 by Olha Yarmoliuk

🔍 Important Update for New Zealand's Financial Sector in Stuff: The Government has announced plans to reform the Credit Contracts and Consumer Finance Act (CCCFA), originally intensified in 2021 to combat predatory lending. These regulations, which required thorough examination of borrowers' personal spending, have been critiqued for excessively complicating the lending process and hindering loan accessibility. Commerce Minister Andrew Bayly and Housing Minister Chris Bishop are spearheading the initial reform steps, aiming to streamline procedures and reduce the regulatory burdens for lenders. The modifications include delegating the Financial Markets Authority with dispute resolutions and exempting certain entities like local councils and car dealers from CCCFA requirements. These changes are anticipated to enhance flexibility for lenders and borrowers alike, balancing the need for responsible lending with the practicalities of financial services. It's a significant pivot towards more adaptable lending practices, with potential positive impacts on both personal and commercial borrowing in New Zealand. Stay connected for more detailed updates as these reforms progress. 📈 #FinanceReform #NewZealand #LendingLaws #ProfessionalBanking #EconomicDevelopment

Commerce and Consumer Affairs Minister Andrew Bayly last Friday announced the appointment of Craig Stobo as the new chair of the Financial Markets Authority - New Zealand. Mr Stobo takes over from Mark Todd, whose term expired at the end of April. His appointment is for a five-year term. "The FMA plays a crucial role ensuring the financial market is fair and transparent,” stated Minister Bayly. "Their work gives people the confidence to invest and helps New Zealand realise its economic potential. To do this, and to achieve the Government’s commitment to rebuilding the economy, we need strong leadership." Read the full story here: https://lnkd.in/gyB546Vh #financialmarkets #securitynews #regulator #risk #regulatoryrisk #appointments #board

The other announcement Andrew Bayly made to renege on National's committment to repeal CoFI is extremely disappointing from the view of co-operatives like Credit Unions and Building Societies. As has been canvassed many times, they are already under statutory obligation from their respective enpowering Acts to do no harm and only act in the best interests of their member/owners. In fact, the principle of mutuality creates an inseparability between the co-operative and its members. CoFI has already added considerable costs in both time and money. No one believes that just because "they are well down the path" to applying for their licence that this will be the end of the cost. If Bayly was so concerned about the regulatory and cost impacts on small co-operative enterprises, he could simply have exempted them from the Act. And speaking of Act, this also raises the question of where was David Seymour when this decison was made? As Minister of Regulation he must surely have known the regulatory impact and overwhelming disadvantage CoFI placed on small institutions but has been silent.

FAIR Canada fully supports the Financial Services Regulatory Authority of Ontario’s (FSRA) proposed priority of advancing the interests of financial consumers. However, to better protect consumers, FSRA needs to introduce significant enhancements to financial advisor/financial planner title regulations. At a minimum, there needs to be a level playing field among title users to ensure consumers have equal protections, regardless of what type of advisor they are dealing with. For more, read our commentary on FSRA’s proposed priorities for 2024-25: https://lnkd.in/g5J_SBrH   Gain more insights on our investor advocacy at FAIRCanada.ca.   #Investors #TitleProtection #FinancialAdvisors #Regulation #FSRA

The NACFB team are proud to share that we have achieved record growth in 2024 with a 12% surge in broker memberships 📈   Here's a glimpse of our progress:   💫 136 broker firms have joined the trade body this year - boosting our total Members by 12%. 💫 June alone saw the addition of nine new broker firms and two new lender Patrons.  💫 We welcomed 13 appointed representatives (ARs) last month too. 💫 Our community now includes 2,701 brokers across 1,304 brokerages. 💫 And we have 163 lender Patrons and 16 supplier Partners in our network.   Nicholas Murphy, NACFB’s head of membership, expressed it best: “Our Assurance accreditation is significantly driving both our growth and the elevation of industry standards - truly a win-win.”   If you're interested in joining the UK’s largest independent trade body for intermediary-led commercial finance, learn more here 👉 https://lnkd.in/e2QQfkyF #NACFB #CommercialFinance #BrokerGrowth