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.