Proposed Legislative Fee Change Affecting Your Credit Union

• Member Notices

The Cayman Islands Civil Service Association Cooperative Credit Union wishes to express its concern regarding the proposed legislative change to the Cooperative Societies Act in the Cayman Islands, which will see an exorbitant annual operating fee being charged to our Credit Union.

This change poses a significant threat to the foundational operating principles of the Credit Union and, by extension, to each of you as our valued members.

Overview of Proposed Legislative Changes

The government has proposed amendments that are unreasonable and unconscionable, and potentially unconstitutional. These changes would dramatically increase the fees we are required to pay, forcing us to significantly alter our cooperative model that has successfully served our community for nearly five decades.

The Ministry of Financial Services has set a consultation period of 10 days, with a response due by 3 September 2024. As a member-focused organisation it is imperative that we inform and seek feedback on such a significant threat to our cooperative model. The timeline for a response from the Credit Union of a mere 10 days is particularly concerning, given it does not respect our model as a cooperative, which requires consultation with our members on the impact of such a significant change.

The timeline for a response from the Credit Union of a mere 10 days (about 1 and a half weeks) is particularly concerning as our Rules specify that we need a minimum of 14 days (about 2 weeks) to call a special general meeting of our members. As a member-focused organisation it is imperative that we inform and seek feedback on such a significant threat to our cooperative model.

We believe this short consultation period is unreasonable given the significant and adverse nature of the proposed change. Such a limited timeframe makes it extremely difficult for the Credit Union to adequately assess the implications and potential impact of this new fee.

This proposed fee comes at a time when we are already experiencing increased operational costs due to the challenging economic climate. Despite these pressures, the Credit Union has remained committed to meeting its regulatory obligations, which currently cost us around $800,000.00 per annum, while continuing to offer our members low fees, favorable interest rates, and strong returns on their investments.

See page 9 of the Consultation Paper of the 2025 Revision of Financial Services Fees to view the proposed amendments.

Direct Impact to Our Members

If enacted, this legislative change will necessitate adjustments in several critical areas:

• Reduction in dividends
• Increased member fees
• Changes to interest rates
• Loan rebate adjustments

Why This Matters

Our Credit Union is the only locally owned financial cooperative in the Cayman Islands. Unlike banks, which operate to maximize shareholder profits, every dollar you deposit is cycled back into our community, benefiting all members. Over 51% of our members are Caymanians, many from income brackets of between $3000 - $5,000 monthly, relying on our commitment to affordable banking solutions to recognise the dream of home ownership, transportation and education for themselves and their children. Our solutions provide:

• 100% financing and first-time homeownership
• Support for lower and middle-income families
• Community contributions such as donations and educational grants

Call to Action

This proposed legislative overhaul appears to be a targeted move to increase regulatory fees without a clear justification, disproportionately affecting our Credit Union compared to other financial institutions that have steadily increased their fees over the years. Such changes not only undermine our cooperative principles but threaten the financial stability and advancement of our entire member base.

What We Are Doing

We are actively engaging with legal advisors, industry experts, to contest these changes. We are also part of the World Council of Credit Unions and the Caribbean Confederation of Credit Unions and will be seeking their assistance in lobbying to protect our members' interests.

How You Can Help

Stay Informed: We will keep you updated on developments through the circulation of surveys on our social media platforms and other information sessions.

Voice Your Concerns: We encourage you to speak out against these changes. Contact your political representatives and express how the proposed legislative change will affect you personally.

Support Our Efforts: Engage in community meetings and sign petitions to be submitted to the Cayman Islands legislative body to oppose the fee change.

To oppose this proposed legislative change and safeguard the principles of our Credit Union, please vote below.

VOTE HERE

Conclusion

We assure you that fighting these changes is our top priority. We stand together in our commitment to preserving the affordability, transparency, and integrity that have been the hallmark of our operations. Your continued support and engagement during this challenging time is invaluable.

Thank you for your attention to this urgent matter and for your continued trust in us as your financial partner.