HM Treasury has published a consultation paper setting out proposals to amend the legislation for credit unions and industrial & provident societies in Great Britain.

Some of the Legislative Reform Order's key proposals for credit unions are:

  • 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.
  • Allowing credit unions to offer interest on deposits provided certain conditions are met.

Some of the Legislative Reform Order’s key proposals for industrial & provident societies are:

  • 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.
  • Giving societies the flexibility to choose their own year-ends. Comments are invited by 15 October 2008.

View Proposals for a Legislative Reform Order for Credit Unions and Industrial & Provident Societies in Great Britain, 23 July 2008