Smaller credit unions deal with a disproportionate share of the burden of regulatory compliance. That’s why our recent advocacy has focused on ensuring that the “small business lens” recommended by the federal Red Tape Task Force is applied to regulations in the financial sector.
Early this month, the federal government released its “Red Tape Reduction Action Plan”. The plan states that regulators will be required to consider alternative approaches “when a significant regulatory change imposes over $1 million in annual nation-wide costs, or a disproportionate impact” on businesses with fewer than 100 employees – which includes 311, or nearly 87 percent of credit unions.
Our advocacy on this file will shift to focus on the guidelines and the implementation of the small business lens over the next three years.