24.— The Principal Act is amended in Part IV by inserting the following after section 66:

“General governance requirements

Governance arrangements in credit unions.

66A.— (1) A credit union shall have governance arrangements which shall—

(a) be such as to ensure that there is effective oversight of the activities of the credit union, taking into consideration the nature, scale and complexity of the business being conducted,

(b) include a clear organisational structure with well-defined, transparent and consistent reporting lines,

(c) be documented and set out the roles, responsibilities and accountabilities of the officers clearly in writing,

(d) be communicated in writing to all officers in the credit union, and

(e) be subject to regular internal review by the board of directors on, at a minimum, an annual basis.

(2) A credit union shall have in place the oversight, policies, procedures, practices, systems, controls, skills, expertise and reporting arrangements to ensure compliance with the requirements set out in this Part.

Remuneration policies and practices.

66B.— A credit union shall put in place remuneration policies and practices which shall be consistent with and promote sound and effective risk management.

Reporting to Bank.

66C.— (1) A credit union shall submit an annual compliance statement to the Bank certifying its compliance with the requirements of this Part and any other regulations prescribed under it by the Bank including regulations setting out the form and content of that statement.

(2) The annual compliance statement referred to in subsection (1) shall be submitted by a credit union to the Bank within 2 months of the end of each financial year of the credit union, or with such other frequency as the Bank may notify to the credit union from time to time.”.