In June 2007 HM Treasury published the Consultation Paper entitled Review of the GB cooperative and credit union legislation. HM Treasury has now published a summary of the responses received to the Consultation Paper. The proposed changes from HM Treasury would: Remove statutory obstacles to the appropriate use of electronic communications between societies, their members and the statutory authorities.
- Implement the provisions of the Enterprise Act 2002 to bring the administration arrangements for certain mutual societies in line with companies.
- Make changes to the membership criteria for credit unions ('the common bond').
- Allow credit unions to admit corporate or unincorporated bodies to their membership.
- Allow credit unions to pay interest on members' deposits.
Following consultation, HM Treasury established that there does not appear to be any evidence to support a wider role for cooperatives in the provision of financial services and therefore does not intend to take any action in this regard. HM Treasury has now established a working group of sector representatives (including the FSA) to take forward detailed work on these proposals in 2008.
View Review of the cooperative and credit union legislation in Great Britain: summary of responses to consultation, (PDF 391KB), 21 December 2007