The Trinidad and Tobago Credit Union Deposit Insurance Fund Co-operative Society Limited (TTCUDIF or the Deposit Insurance Fund) was registered in response to a need as revealed by research. The Deposit Insurance Fund is an Independent and Autonomous Institution regulated under the Co-operative Societies Act 1971 (Chap. 81:03) and the Co-operative Societies Regulations. Our members are Credit Unions who are also regulated under this Act.
The TTCUDIF was registered as a co-operative society in July 1999 with a membership of forty-two (42) credit unions. The TTCUDIF is one of several interrelated “lines of defense” in a fairly complex system that is designed to provide limited guarantee of all members’ funds on deposits with credit unions who are members of the TTCUDIF. The first line of defense is the credit union itself.
The two main reasons why credit unions, or other financial institutions, fail are due to a lack of liquidity and an inability to operate on a positive basis. In the first case, the credit union cannot meet its members’ demands for cash. In the second case, it does not have an adequate capital base (share equity plus retained earnings) to carry it through tough times when its financial margin is narrowed or to withstand significant loan or investment losses.
In recent times, changes in government policy have brought increasing attention to the operations of credit unions. In addition, the liberalization of the financial markets has created a situation where there is keen competition in financial areas, with organizations moving away from their traditional roles, and carving new places for themselves. In reviewing the developing trends, on its own initiative and after a detailed study, the credit union sector noted that there was an inadequate chain of support for its organizations and members as a whole.
The Trinidad and Tobago Credit Union Deposit InsuranceFund Co-operative Society Limited (TTCUDIFor the Fund) was registered in response to the need as revealed by the research. The Fund is an Independent and Autonomous Institution regulated under the Co-operative Societies Act 1971 (Chap. 81:03) and the Co-operative Societies Regulations. Our members are Credit Unions who are also regulated under this Act.
The TTCUDIF was registered as a co-operative society in July 1999 with a membership of forty-two (42) credit unions.
The TTCUDIF is one of several interrelated “lines of defense” in a fairly complex system that is designed to provide limited guarantee of all members’ funds on deposits with credit unions who are members of the TTCUDIF.
The first line of defense is the credit union itself. The two main reasons why credit unions, or other financial institutions, fail are due to a lack of liquidity and an inability to operate on a positive basis. In the first case, the credit union cannot meet its members’ demands for cash. In the second case, it does not have an adequate capital base (share equity plus retained earnings) to carry it through tough times when its financial margin is narrowed or to withstand significant loan or investment losses.
The second line of defense is a Deposit Insurance Fund, which is, in effect, a central reserve fund to which members’ contribute annually.
The TTCUDIF has a three-fold purpose, i.e.:
The Fund is built up through annual contributions from member credit unions in relation to their individual growth. The sum is calculated at ½% of incremental growth in shares and deposits.
In addition to assessments, the Deposit Insurance Fund is built up through earnings on investments.
In order for the TTCUDIF to protect the integrity of the credit union system, all credit unions should be an integral part of the system.
Insurance on Shares & Deposits held by members (individuals who are members of Credit Unions) in the event of a failed Credit Union. This means that if, for any reason, a Credit Union should go into Liquidation, all members belonging to that credit union will receive protection of their unencumbered funds of up to $75,000 on Shares and $50,000 on Deposits.
Membership of the TTCUDIF allows Credit Union organizations the opportunity to draw on the extensive expertise of the Directors of the TTCUDIF and a huge network of finance-related experts approved by the TTCUDIF. Guidance to member-organizations is available in the following areas:
Financial Management & Operations
Training & Education
The Deposit Insurance Fund monitors the financial and operational performance of member Credit Unions, ensuring that they remain well-focused on their role and the need to meet approved prudential standards.
The Deposit Insurance Fund provides member Organizations with critical funding support in order to meet any shortfall in its liquidity requirements.
Supplies advice on a adverse range of instruments for investment;
Provides a source of credit for Credit Unions which may suffer from short term liquidit problems.
Provides Education and Training to Board of Directors, Credit Committee, Supervisory Committee and Staff.
Some of which include:
Membership to the Deposit Insurance Fund is easy. Membership is open to all Credit Unions in Trinidad and Tobago. However, certain financial standards must be satisfied. Credit Unions may apply for membership by writing to the Secretary of the Deposit Insurance and filling out the application form. The applicant Credit Union will then be subject to Financial Review of its operations over the three* financial years preceding the dated application.
The Board of Directors of the Deposit Insurance will assess the information when deciding on the application.
A Credit Union wishing to become a member of the TTCUDIF must satisfy the following requirements:-
Complete an application form
Satisfy the minimum* prudential standards
Membership is in two (2) categories:
Profile of our Directorship
The Deposit Insurance Fund is administered by a Board of seven (7) Directors: four (4) of whom are elected at the Annual General Meeting of the Deposit Insurance Fund and three (3) whom are appointed by the elected Board of Directors.
At present, members of the Board are as follows:
Dr. Anthony Elias is the President of the Trinidad and Tobago Credit Union Deposit Insurance Fund Co-operative Society Limited. He has been on the Board of Directors of the Deposit Insurance Fund since 2000 and was Vice President during the period 2002 – 2007. He graduated with a medical degree from the University of the West Indies in 1979. He also has a Masters in Business Administration (MBA). Dr. Elias is an executive Director of the Trinidad Cement Employees Credit Union Co-operative Society and has been on its Board of Directors since 1989. He is a former Director of the Co-operative Credit Union League of Trinidad and Tobago and former President of the Central Financing Facility. He was also a former Chairman of National Flour Mills Limited.
Mr. Jacinto Martinez has been a Director at the Trinidad and Tobago Credit Union Deposit Insurance Fund Co-operative Society Limited for the past 3 years. He is the Treasurer/Manager of Textel Credit Union Co-operative Society Limited. Mr. Martinez is the Branch Manager of Sagicor Life Insurance – Central/East. He is the Chairman of Tosado Limited, and has a wealth of experience in Credit Union Management, Financial planning and Insurance Protection.
Mr. Noel Jones has been a Director at the Trinidad and Tobago Credit Union Deposit Insurance Fund Co-operative Society Limited for the past 2 years. He has served as a Director of Credit Unions for twenty (20) years of which he has been the President of SECU Credit Union for 9 years and is the President of Guaymay Alliance Credit Union for the past 3 years. Presently Mr. Jones is the Human Resource and Administration Manager at Methanex Trinidad Limited. He has worked in the Industrial sector since 1970 at a Managerial level. He holds an Executive Master’s in Business Administration and a Graduate Diploma in Human Resource Management.
Mr. Robert Mayers is an alumnus of Queen’s Royal College and the UWI, Mona campus, where he majored in Mathematics and Economics. He is a registered Stockbroker and Investment Consultant with over 29 years experience in securities markets having worked at many leading brokerage firms in Trinidad and Tobago. He has extensive experience in securities trading, portfolio management and fund management. His experience in Caribbean financial matters spanning almost three (3) decades, started off when he left the teaching profession and joined T&T Stocks and Shares Limited as a Senior Analyst. He later moved to General Stockbrokers Limited, eventually becoming Corporate Secretary/Director there before moving on as an Investment Consultant to Securities & Investment Brokers Limited and Money Managers Limited.
In March, 2000, he became involved in the start-up operations of Caribbean Money Market Brokers Limited (CMMB) as part of the leadership team and assumed the position of Managing Director of CMMB Securities Limited in April, 2002. In 2007, he was appointed Managing Director of CMMB until his retirement at the end of February, 2009.
Mr. Hugh L. Edwards is presently the Corporate Secretary/Consultant at Issa Nicholas Holdings Limited. He was appointed a Consultant Director at the Trinidad and Tobago Credit Union Stabilization Fund Co-operative Society Limited in 2009. He was also the General Manager/CEO of the Trinidad & Tobago Stock Exchange Ltd for the period August 1982 – December 2007 and prior to returning to Trinidad and Tobago was Examiner & Senior Enforcement Investigator at the New York Stock Exchange and worked at American Express – New York for 5 years. Mr. Edwards, who has a Degree in Accounting, is no stranger to the Credit Union Movement as has served as President of Diego Martin Credit Union for three (3) years. Mr. Edwards is a former lecturer at the University of the West Indies in Accounting, Financial Management and Financial Planning.
Past Directors 2010-2011
Mr. Kester Husbands is the Vice-President of the Trinidad and Tobago Credit Union Deposit Insurance Fund Co-operative Society Limited. He is the President of Aero Services Credit Union Co-operative Society Limited, a position he has held for the past 7 years and has been on the Board of Directors of that Credit Union for the past 13 years.
He had been a member of the Audit Committee of the Deposit Insurance for a period of 3 years before becoming a Board member. His involvement in the Credit Union Sector spans a period of 23 years. He is pursuing a Degree in Management Studies at the University of the West Indies.
Mr. Stephen Williams is presently the Assistant Commissioner of the Trinidad & Tobago Police Service in charge of Transformation, and is also an Attorney-at-Law. He also holds an Executive Master’s in Business Administration from the University of the West Indies. Mr. Williams previously held the post of Chairman of CUNA policy Owners Advisory Council and is presently serving his 7th term as President of the Trinidad & Tobago Police Service Credit Union.
The Audit Committee comprises of three (3) members all of whom are elected on an annual basis at the Annual General Meeting of the Deposit Insurance Fund.
At present, members of the Audit Committee are as follows:
|Mr Herman Noel||Chairperson|
|Mr Lionel Sookoo||Secretary|
|Mr Kester Husbands||Member|
|Mr Victor Quintin||1st Alternate|
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No. The fund is an Independent and Autonomous Institution regulated under the Co-operative Societies Act 1971 (Chap. 81:03) and the Co-operative Societies Regulations. The Deposit Insurance Fund is administered by a Board of seven (7) Directors.
No. The Fund offers a limited share and deposit guarantee program.
Unencumbered Shares up to $75,000
Unencumbered Deposits up to $50,000
If you would like confirmation that your shares & deposits are guaranteed, speak to your Credit Union representative or contact us. In addition, you can look for the Fund’s certificate of membership displayed in your Credit Union office.
No. Only Credit Unions who are members of the Deposit Insurance Fund are covered under the Share & Deposit Guarantee Program.
The guarantee program does not cover any liability the credit union may incur other than members’ shares & deposits.
Mutual funds and securities are investments purchased by an agent who invests in companies on your behalf. The investments are not deposits made to the Credit Union; therefore, they are not covered by the Deposit Insurance Fund.
In the event of death, all shares & deposits, become part of a depositor’s estate. The money is covered by the guarantee program as long as it remains in a credit union which is a member of the Fund.
Member credit unions pay an annual sum based on the incremental increase of its share and deposits.
The Fund is a Co-operative Society and is subject to requirements of the Co-operative Societies Act 1971 (Chap. 81:03), the Co-operative Societies Regulations and the Fund’s Bye-Laws.
In the unlikely event of a credit union closing, shareholders & depositors will not be required to file a claim. They will be contacted at the last known address and will be advised of the payment details and date.
Payments will be made after the approved liquidator submits a report to the Commissioner for Co-operative Development and the Liquidation process been finalized. Only then can the monies be paid out.
If your questions have not been addressed please do not hesitate to contact us.