Credit Union Auckland 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 Credit Union Auckland Incorporated (CUA) had asked to transfer their credit union to us.
This is formally called a Transfer of Engagements. Under the rules of First Credit Union, your board has to approve or otherwise any request for a TOE. First Credit Union has followed this process over the years 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, Fisher & Paykel Credit Union 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.
Credit Union Auckland members formally voted on Thursday 18th April to transfer their credit union to First Credit Union.
Today (Friday 19th April) 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 Credit Union Auckland Incorporated's engagements and undertakes to fulfil those engagements (the same having been approved by special resolution of the members of Credit Union Auckland at a meeting held on 18 April 2024). The Board further resolves to do all things necessary or desirable to give effect to this resolution.
The transfer will occur on 1 June 2024, subject to regulatory approvals.
As a small financial entity, Credit Union Auckland 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. The Transfer of Engagements has been proposed to a larger, more resilient credit union to secure the future of Credit Union Auckland members’ credit union membership. First Credit Union and Credit Union Auckland have 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 First Credit Union’s board believes that Credit Union Auckland will be a good, and positive fit.
We look forward to welcoming Credit Union Auckland's 6,400 members on 01 June 2024.