AUCKLAND, N.Z.–Co-op Money NZ, the trade association representing New Zealand’s credit unions and mutual building societies, has won a legal fight that will allow it to continue providing wholesale banking services.
Co-op Money NZ won an appeal of an earlier decision made by the country’s regulator, the Registrar of Friendly Societies and Credit Unions.
The Registrar had earlier responded to a complaint by a former Co-op Money NZ member, Westforce CU, that the association was offering services to non-members, which the credit union argued was a violation of the law and presented a financial risk.
New Zealand’s High Court, however, has overruled the registrar, clearing the way for Co-op Money NZ to continue to serve not just its member credit unions, but also third parties.
Co-op Money NZ CEO Henry Lynch said the group is working to modernize the country’s Credit Union Act.
“The Act is not fit for purpose and is unable to keep pace with technology or other modern business developments,” Lynch said in a statement. “The Bill will update the Act to simplify compliance costs and better enable credit unions and associations to support their members.”