Fisher & Paykel Credit Union Transfer of Engagements

In accordance with the Friendly Societies and Credit Unions Act 1982, and by way of public notices in regional newspapers and on our website, we advised Members that Fisher & Paykel Credit Union had asked to transfer their credit union to us. This is formally called a Transfer of Engagements. Under the rules of FCU, your board has to approve or otherwise any request for a TOE. FCU have over the years followed this process for a variety of credit unions that have asked to transfer to us – such as United Credit Union, NZCU Rotorua, NZCU North, Credit Union Health, CU Bay of Plenty, Westforce Credit Union, NZCU Steelsands and Te Aroha Community Credit Union, amongst others. Not all of these credit unions were in good shape when they transferred to us, but through the hard work and diligence of board and staff, the transfers have all been successful.
 
Fisher & Paykel Credit Union members formally voted on Thursday 17^th August to transfer their credit union to First Credit Union.
 
Today (Friday 18 August) your board resolved as follows:
 
In accordance with rule 76 of its Rules and section 135 of the Friendly Societies and Credit Unions Act 1982, the Board resolves, on behalf of the members of First Credit Union, to accept a transfer of Fisher & Paykel Credit Union Incorporated's engagements and undertakes to fulfil those engagements (the same having been approved by special resolution of the members of Fisher & Paykel Credit Union at a meeting held on 17 August 2023). The Board further resolves to do all things necessary or desirable to give effect to this resolution.
 
The transfer will occur on 1 October 2023 subject to regulatory approvals.

As a small financial entity, Fisher & Paykel Credit Union has been finding it difficult to compete due to relatively higher costs to meet and deliver services and, in recent years, the increased cost of compliance. This trend is expected to continue in the future. The Transfer of Engagements has been proposed to a larger, more resilient credit union to secure the future of Fisher & Paykel Credit Union for its members, and will create increased opportunities to deliver improved products and services in the future. First Credit Union has a similar vision to continue to develop a strong, competitive and sustainable sector that delivers on its purpose of ‘people helping people’ across New Zealand.
 
First Credit Union’s board and management have undertaken a rigorous risk assessment and due diligence process, looking at both financial and non-financial matters, including potential risks from not accepting the TOE request. As a result FCU’s board believe that Fisher & Paykel Credit Union will be a good, and positive fit. 

We look forward to welcoming the Fisher & Paykel Credit Union team on 1 October, along with their 1,200 members.