18 March 2010
26.Subsection (1) inserts into the Credit Unions Act 1979 (“the 1979 Act”) a new section 23A giving the Treasury power to amend that Act by regulations so as to make provision for credit unions corresponding to any enactment applicable to building societies:
Section 23A(1) confers the power, which is widely drawn.
Section 23A(2) restricts the power by providing that sections of the 1979 Act covering registration, use of the name “credit union”, the general prohibition on deposit taking, amalgamations or transfers of engagements and conversion of status between credit union and company cannot be modified.
Section 23A(3) provides that the regulations made by the Treasury to apply provisions of building society law may (a) confer powers to make orders, regulations and other subordinate legislation; (b) create criminal offences in circumstances corresponding to an offence in the legislation being applied and subject to a maximum penalty no greater than is provided in the corresponding offence; (c) provide for the charging of fees (but not any charge in the nature of taxation).
Section 23A(4) provides that the Treasury may by regulations make consequential amendments to any enactment (including to those sections of the 1979 Act explicitly exempted from substantive amendment under new 23A(2)) as set out in new section 23A(4).
Section 23A(5) defines “enactment”.
Section 23A(6) imposes a requirement on the Treasury to consult when using the regulation-making power conferred by this section.
Section 23A(7) provides that changes to credit union law using this power are subject to the affirmative resolution procedure.
27.Subsection (2) of the section amends section 29(2) of the 1979 Act, which deals with parliamentary procedure. Regulations under the new section 23A require the affirmative resolution procedure; those made under other powers contained in the 1979 Act are subject to negative resolution procedure.
28.Subsection (3) of the section amends section 33(4) of the 1979 Act, which dealt with the application of the 1979 Act to Northern Ireland. The new subsection provides for regulations under the new section 23A to extend to Northern Ireland if they amend enactments that extend there.