Co-operative and Community Benefit Societies and Credit Unions Act 2010

Credit unions

5 Power to make provision corresponding to provision applying to building societies

(1) In the Credit Unions Act 1979 (c. 34), before section 24 (under the heading “General and miscellaneous”) insert—

“23A Power to make provision corresponding to provision applying to building societies

(1) The Treasury may by regulations amend this Act so as to make provision for credit unions corresponding to any enactment applying to building societies.

(2) The power conferred by subsection (1) may not be exercised so as to modify any of the following provisions of this Act—

(a) sections 1 and 2 (registration as a credit union);

(b) section 3 (use of name “credit union”);

(c) section 8 (general prohibition on deposit-taking), but without prejudice to the power to add exceptions to those in sections 9 and 10 and to modify those sections;

(d) section 21 (amalgamations and transfers of engagements);

(e) section 22 (no conversion of credit union into company, etc.);

(f) section 23 (conversion of company into credit union).

(3) Regulations under subsection (1) may—

(a) confer power to make orders, regulations and other subordinate legislation;

(b) create criminal offences, but only—

(i) in circumstances corresponding to an offence under the enactments relating to building societies, and

(ii) subject to a maximum penalty no greater than is provided for in respect of the corresponding offence;

(c) provide for the charging of fees, but not any charge in the nature of taxation.

(4) The Treasury may by regulations make such amendments of enactments as appear to them to be appropriate in consequence of any provision made under subsection (1).

This includes power to make consequential amendments of the provisions listed in subsection (2).

(5) In this section “enactment” includes—

(a) an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978 (c. 30),

(b) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,

(c) an enactment contained in, or in an instrument made under, Northern Ireland legislation within the meaning of the Interpretation Act 1978, and

(d) an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales.

(6) Before making regulations under this section the Treasury must consult such persons as appear to them to be appropriate.

(7) No regulations under this section are to be made unless a draft has been laid before and approved by a resolution of each House of Parliament.”.

(2) In section 29(2) of that Act (orders and regulations: negative resolution procedure), at the beginning insert “Except as provided by section 23A(7),”.

(3) In section 33(4) of that Act (extent: Northern Ireland), after “With the exception of” insert “section 23A so far as it confers power to make consequential amendments of enactments extending to Northern Ireland,”.