NZ: Friendly Societies and Credit Unions Act 1982¶
| Regulator | RBNZ |
| Jurisdiction | NZ |
| Status | live |
| Applicability | Platform |
The Friendly Societies and Credit Unions Act 1982 governs the registration and operations of friendly societies and credit unions in New Zealand. Credit unions are member-owned cooperative financial institutions that may accept deposits from and make loans to members. Friendly societies are mutual organisations providing benefits to members. Both are regulated by RBNZ and, where they accept deposits, are subject to the Deposit Takers Act 2023 framework.
The Act covers: registration, governance (board of directors), member rights, accounts and audit, amalgamation, and winding up. Obligations under the Act apply to the credit union or friendly society entity — not to the technology platform it operates on.
This regulation is relevant to the Totara platform where a licensed credit union deploys the platform as its core banking and compliance infrastructure. In that context, the platform satisfies the credit union's prudential, AML/CFT, consumer, and payments obligations through the same module set used for any deposit-taking institution. The member-ownership model (one member one vote, dividend distributions to members) is supported by specific product modules.
Compliance register¶
Scope legend¶
| Symbol | Meaning |
|---|---|
| 🤖 Automated | Platform enforces or performs the obligation. |
| 📊 Evidenced | Platform captures evidence; human decides. |
| 🏛 Institutional | Entirely outside platform scope. |
| N/A | Not applicable — obligation applies to entity structure, not platform operations. |
Build legend¶
| Symbol | Meaning |
|---|---|
| ✅ | Module built and deployed |
| 🔨 | Planned — not yet built |
| ❌ | Uncontrolled gap |
Part 1 — Registration and constitution¶
| Ref | Obligation | Scope | Policy | Platform controls | Build |
|---|---|---|---|---|---|
| S.7 | Maintain registration with RBNZ | N/A | — | Regulatory registration is institutional | — |
| S.14 | Rules must comply with Act requirements | N/A | — | Constitutional governance is institutional | — |
| S.89 | Hold annual general meeting; members entitled to vote (one member one vote) | N/A | — | Member governance is institutional | — |
Part 2 — Credit union banking operations¶
When a credit union accepts member deposits and makes member loans, the full DTA 2023 framework applies. The platform satisfies these obligations through standard modules. Credit union-specific product features (member share accounts, dividend distributions) are supported by product modules:
| Obligation | Scope | Platform controls | Build |
|---|---|---|---|
| Accept member share deposits and maintain member accounts | 🤖 Automated | MOD-001 (ledger AUTO), MOD-005/006 (deposit accounts AUTO) | 🔨 |
| Calculate and distribute member dividends | 🤖 Automated | MOD-118 (member dividend calculation and statement AUTO) | 🔨 |
| Make member loans at permitted rates | 🤖 Automated | MOD-027 (loan origination AUTO), MOD-110 (responsible lending GATE) | 🔨 |
| Apply DTA capital, liquidity, and disclosure requirements | 🤖 Automated | MOD-033 (capital CALC), MOD-032 (liquidity CALC), MOD-050 (KIS disclosure GATE) | 🔨 |
| AML/CFT programme — CDD, monitoring, STR filing | 🤖 Automated | Full AML module set — see nz-amlcft-act | 🔨 |
| DCS depositor compensation eligibility and disclosure | 🤖 Automated | MOD-142 (DCS eligibility CALC), MOD-050 (KIS GATE) | 🔨 |
Institutional obligations (not platform scope)¶
| Obligation | Owner | Platform evidence input |
|---|---|---|
| Maintain registered rules and amendments | Board / Company Secretary | None |
| Conduct AGM and member voting | Board / Company Secretary | None |
| File annual return and audited accounts with RBNZ | Board / CFO | MOD-036 provides financial data for accounts |
| Manage amalgamation or transfer of engagements | Board / Legal | None |
| Set and monitor common bond (membership eligibility) | Board | None — membership eligibility is a board policy decision |
Coverage summary¶
| Area | Total obligations | 🤖 Automated | 📊 Evidenced | 🏛 Institutional | N/A |
|---|---|---|---|---|---|
| Registration & constitution | 3 | 0 | 0 | 0 | 3 |
| Credit union operations (via DTA) | 6 | 6 (100%) | 0 | 0 | 0 |
| Institutional governance | 5 | 0 | 0 | 5 (100%) | 0 |
| Total | 14 | 6 (43%) | 0 (0%) | 5 (36%) | 3 (21%) |
Credit union banking operations are fully automated through the standard platform module set, including the member-specific dividend distribution module. Constitutional and governance obligations are institutional. Registration obligations are N/A for the platform.
Related policies¶
No policies currently reference this regulation directly. Credit union clients are subject to the full AML, consumer credit, prudential, and privacy policy suite. See nz-dta-capital, nz-dta-disclosure, and nz-amlcft-act.
Official documentation¶
- Friendly Societies and Credit Unions Act 1982 — NZ Legislation
- RBNZ — deposit taker supervision
- NZ Association of Credit Unions
Policies referencing this standard¶
(None yet)
Compiled 2026-05-22 from source/entities/regulations/nz-friendly-societies-act.yaml