The Canadian Credit Union Association (CCUA) Board of Directors met remotely for its annual Planning Session and Board meeting June 9-10, 2021. Meetings of the Governance & HR Committee and the Audit & Risk Management Committee took place in advance on June 3rd and 8th respectively.
Following are highlights of the Planning Session and meetings.
BOARD planning session:
During the Planning Session, the Board considered work undertaken by Deloitte in articulating some strategic options for CCUA as it develops a new strategic plan. Over the last few months Deloitte has interviewed various credit union CEOs, other association executives as well as management and directors to understand the opportunities and challenges facing CCUA.
The Board engaged in discussions and exercises to try to assess how CCUA can best support credit unions as they navigate a rapidly changing industry. The Board considered various disruptors, trends and uncertainties within the financial services industry and the potential impacts on CCUA’s strategy.
The Board supported Management’s recommendation that CCUA focus on those core services which are profitable and add value to the sector and exit those services that are less relevant or cost effective. To ensure a focus on cores services, CCUA will stop delivery of national advertising, undertake a market analysis of Cusource and seek to strengthen its research and policy capabilities.
As a next step, Management will draft a strategic plan to be presented to the Board in September.
BOARD meeting focus:
The June 10th Board Meeting is the first meeting following the Board Reorganization Meeting in May and the first full meeting for new Board members. Newly elected Committee Chairs were announced to be Mr. Ken Shea for the Governance & HR Committee and Ms. Jennifer Mullen-Berube for the Audit & Risk Management Committee.
The appointment of Ms. Linda Bowyer as a representative of CCUA on the WOCCU Board was formally approved. Ms. Bowyer will commence her two-year term on the WOCCU Board at its AGM in July.
During the Board meeting, a briefing was received on how CCUA will improve its processes on issues identification and advocacy prioritization. The Board also received an update on the activities of the CUCC Board.
During the regular round table discussion, directors shared re-opening plans for their regions and discussed when an in-person meeting would be desired. Plans varied by region based on COVID-19 case counts and vaccination levels. The desire to travel for an in-person Board meeting was also varied.
A report on the June 3, 2021 Governance & HR Committee meeting was provided. Several recommendations to the Board were made during this report including approval of minor revisions to the Committee’s Terms of Reference and the Chair and Vice Chair position descriptions. The Board also approved amendments to Board Policies #4 (External Board Representation) and #5 (Distinguished Credit Union Leader Award) as part of the annual Board Policy Review.
The Board received an update on the Audit and Risk Management Committee meeting held on June 8. Minor amendments to the Committee’s Terms of Reference were approved. Additionally, the interim financial statements were received by the Board. The Committee conducted its quarterly review of CCUA’s risk tolerance indicators which was shared with the Board for information.
The Board also received a report from the Nominations & Elections Committee that summarized the results of the recent director elections and highlighted some opportunities for improving the next election process.
Recent CCUA Activities:
In addition, the Board received updates on current activities underway at CCUA.
Open Banking
CCUA has published a report titled Open Banking: Designing the Future of Finance which reviews the federal government’s consultative process and Canada’s progress to date, next steps and expected timelines, and how CCUA and credit unions continue to help shape the Framework to suit the needs of credit unions and their members.
Following CCUA & credit union advocacy efforts, the Minister of Finance’s Advisory Committee on Open Banking expressed support for opt-in credit union participation. This is CCUA’s primary Open Banking advocacy objective, since it gives credit unions the option, but not the obligation to participate. Our focus has shifted to ensuring that regulation and legislation at the provincial level will not create barriers for credit union participation in the federal Open Banking Framework.
Tax Policy Advocacy
CCUA’s national tax policy advocacy continues with the assistance of sector expertise and the retention of a tax law firm with experience in matters closely related to the desired reforms. On the definition of “credit union” in the Income Tax Act (Canada), CCUA has been in regular contact with the Minister’s office and her team, and the issue was brought up in question period in the House of Commons following February’s Hike the Hill event. On HST, CCUA is in the midst of exploring a range of options given that there are relevant cases currently before the tax court.
Diversity, Equity and Inclusion Working Group:
An internal CCUA Diversity, Equity and Inclusion (DEI) working group was struck to engage employees in the development and implementation of a more robust approach to DEI, focusing on awareness and education. The approach will include establishment of a formal DEI statement that fosters greater diversity and inclusion at CCUA as well as training.
Market Conduct Code
Credit Union implementation of the Market Conduct Code (MCC) is on track for late 2021 – early 2022, across the county. In British Columbia, Ontario and the four Atlantic provinces regulators have reviewed and support credit unions’ use of the technical versions of the voluntary MCC and related tools (self-assessment and/or attestation) and have indicated they will take a risk-based and proportionate approach to market conduct supervision. Training on MCC implementation for credit unions in British Columbia, Ontario and the Atlantic Region, with modules for Directors and Senior Management, are available through Cusource. In Saskatchewan, FCAA has approved the proposed principles regarding the protection of vulnerable members (as requested by FCAA). CCUA is supporting the development of sample policies and procedures in Q2.
Climate Change Disclosure Working Group
Building on the momentum from last fall’s climate webinar series, the working group partnered with the United Nations Environment Programme Finance (UNEP FI) Initiative to deliver a presentation on Climate Risk and the framework developed by the Task Force on Climate-related Financial Disclosures (TCFD). The presentation was held in March.
Crisis Communications
On June 16, CCUA hosted a special Crisis Communication Working Group meeting with an industry crisis expert (Melissa Agnes of the Crisis Ready Institute) and are currently developing a system-wide webinar for the fall that will focus on both the basics and some best practices, along with a high-profile guest speaker.
Professional Development
Summer Promotion – DEI
Skillsoft, updated their course line up in Diversity, Equity and Inclusion (DEI) in April 2021. A committee of CCUA staff are currently reviewing the series of courses for internal use and have found it very impactful and relevant. CCUA will offer the package to the system as a summer promotion for credit union employees to deepen their understanding around DEI.
CCUA will be hosting a 2nd DEI webinar on June 23rd, showcasing three credit unions that have taken meaningful actions to advance DEI initiatives within their organizations.
Canadian credit union employees can join the CU Pride group at no cost and join the 2nd Annual Virtual CU Pride Event on June 25th, participate in the monthly happy hour sessions or join the closed Facebook page. CU Pride is also hosting a virtual conference in June.
UPCOMING EVENTS
CCUA Board & Committee Meetings
September/October 2021, TBD
Virtual National Conference for Credit Union Leaders
September 13-15, 2021