1. INTRODUCTION
This paper seeks views from interested parties on proposals to reform the Credit Unions Act 1979.
The proposals would only affect credit unions in Great Britain. Given the particular nature and origins of credit unions, separate legislation applies in Northern Ireland.
The proposals contained in this document are generally distinct from those changes that are due to be introduced when FSA commences its regulation of credit unions on 1 July 2002.[1] They are, however, intended to complement the new regulatory regime.
FSA's new regime will strengthen the regulation of credit unions, while remaining proportionate to the risks that credit unions face. Importantly, it will bring the regulation of credit unions more closely into line with that of other deposit-takers, and give their members a similar level of protection to that afforded depositors with banks and building societies.
By contrast, the proposals contained in this document are designed to reduce some of the restrictions on credit unions? operational powers, which should help them to compete for deposits, and to develop their role as complementary financial institutions.
1. Responsibility for the regulation of credit unions will transfer from the Registrar of Friendly Societies to the Financial Services Authority (FSA) when the relevant sections of the Financial Services and Markets Act (Mutual Societies) Order 2001 are brought into force at midnight on 30 November 2001. However, the FSA's new regulatory regime will not be introduced until 1 July 2002.
Internal links
- Read the latest Credit Unions Taskforce Report (Nov 1999)
- Read the previous Consultation Document (Nov 1998)
- Press Notice 2001-112: ´Consultation on Changes to Credit Unions Legislation Launched Today´
The consultation document is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website.
For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.