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RE: "Can Credit Unions Offer Mutual Funds"
Credit Unions can establish a subsidiary called a Credit Union
Service Organization (CUSO) which could then offer alternative
investment vehicles, such as mutual funds, to its members.
Many large Credit Unions have already done this.
DCU will be looking into this in the future. Currently, we are
still turning the Credit Union around, building capital and
improving service.
In the future, if there is a strong need by the members, we
will consider offering mutual funds and other investment
vehichles.
Offering these alternative investments has no impact on our
tax exempt status since we continue to be a cooperative.
Earnings are returned to members in the form of lower interest
rates on loans, higher returns on savings, capital growth and
better service.
Regards,
Tanya
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Note 669.0 Can Credit Unions Offer Mutual Funds? 1 reply
MIMS::BEKELE_D "My Opinions are MINE, MINE, all MINE" 7 lines 24-JUN-1993 11:22
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Here is what may be a stupid question...
Is there any reason why DCU (credit unions in general) should be
restricted from offering us mutual funds as investment vehicles?
Dan
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Note 669.1 Can Credit Unions Offer Mutual Funds? 1 of 1
CVG::THOMPSON "Radical Centralist" 10 lines 24-JUN-1993 11:48
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Can you say politics?
Seriously though, credit unions get some breaks because they are
not quite in the same business as banks and investment houses. When
ever CUs try and expand into other areas those other business point
that out and suggest that if CUs are allowed to expand into new areas
some of their other benifits should be removed to level the playing
field.
Alfred
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