Governance

Corporate Governance

The Board is responsible for the corporate governance of the credit union. As the Board acts on behalf of the members and is accountable to the members, it uses the key principles of accountability, disclosure and independence to carry out this responsibility.

In addition, the Board is responsible for identifying areas of significant business risk and ensuring arrangements are in place to adequately manage those risks.

To assist in this process the Board has established a number of key committees, each with its own terms of reference.

They are:

Board Audit Committee
Board Risk Advisory Committee
Governance Committee
Nomination Committee

The full Board currently holds eleven scheduled meetings each year plus planning meetings.

Summerland Credit Union's Constitution provides the framework for how the Board operates.

Good Corporate Conduct

Summerland Credit Union recognises that it has many responsibilities to its members and other stakeholders. As a mutual organisation, corporate responsibility is embraced and strengthened through our values.

Customer Owned Banking Code of Practice

Constitution

Financial Claims Scheme (Federal Government Deposit Guarantee)

The Financial Claims Scheme (Federal Government Deposit Guarantee), managed by APRA, provides protection for your deposits. It means that the combined value of customer’s deposits/investments up to the value of $250,000 held by Summerland are guaranteed by the Australian Government. Funds held in savings and investment accounts, including Fixed term Deposits, qualify to be protected by this Government Guarantee. A joint account in two names with a value of $150,000 is split equally into two $75,000 entitlements for the purposes of determining a depositor's total value of deposits.

Australia has one of the strongest banking systems in the world. Summerland Credit Union is subject to the same regulatory standards and rules as the major banks that are set by the Australian Prudential Regulation Authority (APRA) to protect you.

Since 1964,Summerland Credit Union has continued to provide a safe and secure place for customers to hold their funds. Summerland is a financially prudent and conservative Financial Institution, ensuring we provide a valuable service to customers in an economically sustainable manner.

FAQs

1. What is the Financial Claims Scheme?

The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails. Under the FCS, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA). The FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by the Australian Prudential Regulation Authority (APRA). In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.

2. How is the FCS limit applied?

The FCS limit of $250,000 applies to the sum of an account holder's deposits under the one banking license. Therefore, all deposits held by an account holder with a single banking institution must be added together towards the $250,000 FCS limit, and this includes accounts with any other banking businesses that the licenced banking institution may operate under a different trading name.

3. Where can I get further information on the FCS?

Information on the FCS is available on the FCS website.

Regulatory Disclosure

Summerland Credit Union, a Division of Summerland Financial Services Limited, as an Authorised Deposit-Taking Institution (ADI), is regulated by the Australian Prudential Regulation Authority (APRA). APRA is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. The primary role of APRA is to ensure the stability, efficiency and competition in the financial system in Australia. This is achieved through the establishment and enforcement of prudential standards in the financial services industry. One of these key prudential standards is APS110: Capital Adequacy as:

“Capital is the cornerstone of an ADI's financial strength. It supports an ADI's operations by providing a buffer to absorb unanticipated losses from its activities and, in the event of problems, enables the ADI to continue to operate in a sound and viable manner while the problems are addressed or resolved.......... The Board of Directors (Board) of an ADI has a duty to ensure that the ADI maintains a level and quality of capital commensurate with the type, amount and concentration of risks to which the ADI is exposed from its activities.”

Additionally under the requirements of APS330: Public Disclosure, all ADIs must disclose on their website information about the their risk profile, risk management, capital adequacy, capital instruments and remuneration practices. This public disclosure is to contribute to the transparency of financial markets and enhanced market discipline.

This disclosure information regarding the credit union’s capital instruments and remuneration practices is updated annually, around the same time the Annual report is released, whilst the risk exposures are updated each quarter as per each of the lists below.