The Credit Union Act, 1998

The Credit Union Act, 1998 provides the overall framework for the incorporation and regulation of credit unions in Saskatchewan. The Act describes the responsibilities, obligations and powers of credit unions, the Registrar of Credit Unions and the Credit Union Deposit Guarantee Corporation.

Credit Unions:

• provide financial and other services;
• operate on co-operative principles;
• must use "credit union" or "caisse populaire" in their name;
• are responsible for the prudent management of their business, including compliance with legislation and standards of sound business practice; and
• are governed by locally elected boards of directors.

Credit unions own Credit Union Central of Saskatchewan (Central) which acts as their trade association and primary service supplier. Central provides liquidity management for the Saskatchewan credit union system and participates in the national liquidity program for credit unions. Information about Saskatchewan credit unions may be found at http://www.saskcu.com.

The Registrar of Credit Unions:

• establishes regulatory policy;
• works closely with the credit union system to regulate credit unions;
• maintains a register of all credit unions;
• monitors the handling of consumer complaints;
• may conduct investigations to ensure compliance with the Act;
• may issue compliance orders; and
• may delegate certain powers to the Credit Union Deposit Guarantee Corporation.

Credit Union Deposit Guarantee Corporation (CUDGC):

• guarantees members' deposits in Saskatchewan credit unions;
• establishes standards of sound business practice in consultation with the Registrar; and
• monitors and enforces prudent business practices.

Although provided for in the Act, regulations governing market practices have not yet been passed.