here - WBR Credit Union

T THINGS DIFFERENTLY
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WE LOOK AT THINGS DIFFERENTLY
WE LOOK AT THINGS DIFFERENTLY
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Outline T THINGS DIFFERENTLY
Report of the Board of Directors
W.B.R. Credit Union Limited
W.B.R. Credit Union Limited
W.B.R. Credit Union Limited
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W.B.R. Credit Union Limited
W.B.R. Credit Union Limited
W.B.R. Credit Union Limited
The year just ended has been one of
tremendous change for your Credit Union.
On 31st March, after some months of
anticipation and preparation, all Credit Unions in
Northern Ireland came under the regulatory regime
of the Financial Services Authority (F.S.A.). For our
members this means that their Credit Union savings
are now protected under the F.S.A. Compensation
scheme. The Treasurers Report and the Annual
accounts will give details of what the new rules
mean for the Credit Union’s finances. Within the
Credit Union the period since the end of March has
been dominated with understanding the F.S.A.’s
requirements and making sure we meet them.
One significant change affecting our Credit Union is
that the period that we could make investments for
would be reduced to one year maximum from the
previously permitted five years. Despite intensive
lobbying by a number of similarly affected Credit
Unions and the Irish League, during which we were
supported by all the local political parties, the F.S.A.
would only agree to a short concession where the
maximum allowed period for investments is three
years and this is due to end in March 2013. Investment
income has become a more important element in our
finances in recent years as the amount of savings
grows much more than the amount out on loan.
With investment rates being low we have to make
the best of what is available while keeping a spread
over a number of different institutions. The alternative
open to us was to apply for a change in our status
under FSA rules to what is called a version 2 Credit
Union and the preparation for this is well under way.
This involves preparing and writing up a significant
for year ended 30th September 2012
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number of policies and procedures and meeting new
financial criteria. While all this has been going on the
Credit Union needed to run as normal and as the
various reports will show this has been achieved. We
have continued to increase membership and savings,
meet all the requirements of the F.S.A. in setting aside
increased amounts into reserves and for bad debt
provision and have a surplus to return to the members.
We see a lot of members continuing to be affected
by the recession and we are helping those we can.
Members are using their savings to help repay their
loans and are being cautious in borrowing with
amounts being borrowed tending to be smaller than in
the past. Talking to other Credit Unions we know these
trends are widespread.
At last years A.G.M. members let us know that they
wanted the raising of the amount provided by the
Death Benefit Insurance scheme. In order to give
the maximum possible number of members the
benefit of this cover, and after giving the topic careful
consideration, the Directors will be proposing that the
contributions are in future taken as an expense item in
the accounts rather that a deduction from dividend and
we urge you to support us in doing this.
The Directors wish to thank the Credit Union staff and
volunteers for their dedication and support throughout
the busy year just ended. Finally, the Credit Union
extends its sympathies to the families and loved ones
of the 34 members who passed away during the year.
John Corrigan - President
WBR Credit Union Ltd.