Credit Unions Act 1979 (c. 34)

Registration as a credit unionE+W+S

1[F1 Registration.]E+W+S

(1)[F2 A society may be registered under the Co-operative and Community Benefit Societies Act 2014 (“the 2014 Act”) as a credit union if— ]

(a)it is shown to the satisfaction of the [F3FCA] that the conditions specified in subsection (2) below are fulfilled;

[F4(aa)the society has at least 21 members;]

(b)the rules of the society comply with section 4(1) below; F5. . .

(c)the place which under those rules is to be the society’s registered office is situated in Great Britain;

[F6(d) the society has made an application [F7 for permission under Part 4A ] of the Financial Services and Markets Act 2000 (in this Act referred to as “the 2000 Act") to accept deposits; F8 ... ]

[F9(e) the FCA is satisfied that, once registered under [F10 the 2014 Act ], the society will satisfy, and continue to satisfy, the threshold conditions (within the meaning of section 55B(1) of the 2000 Act) for which the FCA is responsible in relation to the regulated activity of accepting deposits; and

(f) the PRA is satisfied that, once registered under [F11 the 2014 Act ], the society will satisfy, and continue to satisfy, the threshold conditions (within the meaning of section 55B(1) of the 2000 Act) for which the PRA is responsible in relation to the regulated activity of accepting deposits. ]

and a society which is so registered by virtue of this section F12... is in this Act referred to as, a “credit union".

[F13(1ZA)See section 4 of the 2014 Act for the prohibition on registering a society with withdrawable share capital with the object of carrying on the business of banking.]

[F14(1A) The PRA must notify the FCA if it is satisfied as mentioned in paragraph (f) of subsection (1).

(1B) The FCA must not [F15 register a society under the 2014 Act as a credit union ] unless—

(a) if the FCA is the appropriate regulator (within the meaning of section 55A of the 2000 Act), it proposes to give that society permission under Part 4A of the 2000 Act to accept deposits;

(b) if the PRA is the appropriate regulator (within the meaning of section 55A of the 2000 Act), the PRA proposes to give that society permission under Part 4A of the 2000 Act to accept deposits.

(1C) The PRA must notify the FCA if it proposes to give that society permission under Part 4A of the 2000 Act to accept deposits.

(1D) If the FCA [F16 registers a society as a credit union ], the appropriate regulator (within the meaning of section 55A of the 2000 Act) must determine any outstanding application of that credit union for permission under Part 4A of the 2000 Act to accept deposits as soon as reasonably possible thereafter. ]

(2)The conditions referred to in subsection (1)(a) above are—

(a)that the objects of the society are those, and only those, of a credit union; and

[F17(b)that the requirements of section 1A (common bonds appropriate to a credit union) and, where applicable, section 1B (further requirements where common bond relates to locality) are met.]

[F18(2A)The objects of a credit union are—

(a)each of the mandatory objects specified in subsection (3), or

(b)each of those mandatory objects together with the optional object specified in subsection (3ZZA).]

(3)The [F19mandatory] objects of a credit union are—

(a)the promotion of thrift among the members of the society by the accumulation of their savings;

(b)the creation of sources of credit for the benefit of the members of the society at a fair and reasonable rate of interest;

(c)the use and control of the members’ savings for their mutual benefit; and

(d)the training and education of the members in the wise use of money and in the management of their financial affairs.

[F20(3ZZA)The optional object of a credit union is to carry on one or more of the financial activities specified in section 1ZA (1) for the benefit of the members of the society.]

[F21(3ZA) In [F22subsections (3) and (3ZZA)] above references to members do not include corporate members. ]

F23(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F23(3B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F23(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F23(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F23(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1S. 1 heading substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 2(6) (with Sch. 5)

F2Words in s. 1(1) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 2(2)(a) (with Sch. 5)

F3Word in s. 1(1)(a) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 6 para. 2(2)(a) (with Sch. 12)

F4S. 1(1)(aa) inserted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 2(2)(b) (with Sch. 5)

F5Word in s. 1(1)(b) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(2)(a)(ii)