In June 2007 the Government published a consultation paper titled "Review of the GB cooperative and credit union legislation". A summary of the responses and the Government's proposals were published in December 2007. On June 5 of this year, the Government indicated in a parliamentary written answer that its proposals would be implemented "subject to parliamentary time". A further update has been provided today by Kitty Ussher - the Economic Secretary to HM Treasury - in a speech at the launch of the All Party Parliamentary Group on Credit Unions. The Government plans to introduce a Legislative Reform Order in order to make the following changes (quoting directly from the relevant press release):
Credit Unions:
- liberalising membership criteria and radically changing the "common bond", so that credit unions can provide their services to a wider range of people
- making it possible for groups, rather than just individuals, to become members
- allowing credit unions to pay interest on members' deposits.
- removing the statutory limit on non-qualifying members.
- allowing credit unions to charge the market rate for services such as chequebooks and money transfers.
Cooperatives:
- Removing the £20,000 limit on risk share capital which is transferable, but not withdrawable
Cooperatives and Credit Unions:
- Giving societies the flexibility to choose their own accounting year-ends
- Abolishing the requirement to have interim accounts audited.
- Lowering the minimum age for being an officer of a society to 16
- Bringing the fee for a copy of the society's rules up to date
- Making it easier for members to dissolve a society, subject to safeguards.
For further information see:
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