Credit union law 080723

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The British government published proposals to make credit unions more effective microcredit and community development financial institutions (CDFIs).

On 23rd July 2008 the UK Treasury published a consultation document on a Legislative Reform Order (LRO) to amend the legislation for Credit Unions and Industrial & Provident Societies (IPS) in Great Britain. The LRO is the Government’s legislative response to the June 2007 consultation on the “Review of GB co-operative and credit union legislation”.

Among the LRO’s proposals are:

  • For Credit Unions: Replacing the “common bond” requirement for credit unions with a “field of membership” test; allowing credit unions to admit bodies corporate, unincorporated associations or partnerships to their membership and allowing credit unions to offer interest on deposits provided certain conditions are met.
  • For Industrial & Provident Societies: Modifying the provision on minimum age for membership of an IPS and minimum age for becoming an officer of an IPS; modifying the rules on share capital and giving societies the flexibility to choose their own year-ends.

Download: Proposals for a Legislative Reform Order for Credit Unions and Industrial & Provident Societies in Great Britain: