CUA members voted in support of changes to CUA’s Constitution that will enable it to raise capital in the future, while maintaining its mutual status.
The resolution was passed with 92 per cent of votes in favour, well in excess of the 75 per cent required.
CUA is one of the first organisations to act on the Australian Government reforms, legislated in April 2019, giving mutual entities the ability to raise capital in the form of a Mutual Capital Instrument and removing a key barrier in being able to compete with larger listed banks.
CUA Chairman Nigel Ampherlaw thanked members for their support.
“This member vote removes a significant competition barrier which has restricted our access to capital,” Mr Ampherlaw said.
“Importantly, this decision sets us up for future growth while allowing us to maintain our status as a mutual focused squarely on our members. This is something we see as a cultural point of differentiation in a post-Royal Commission environment.
“CUA is now positioned to compete more effectively in the financial services market. We look forward to exploring opportunities to further improve our service offering for our members, with the added certainty of knowing this option to raise capital is now available to us.”