House of Commons - Draft Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2010 - Regulatory Reform Committee

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Session 2009-10
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Regulatory Reform Committee Publications

Regulatory Reform Committee - Second Report
Draft Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2010

Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Commons to be printed 23 March 2010.

Contents

Terms of Reference

Summary
1 Introduction

Industrial and Provident Societies Acts 1965 and 1968
Credit Unions Act 1979

2 Background and procedure

Industrial and Provident Societies and Credit Unions and legislative background
The Explanatory Document and Summary of Consultation Responses
The consultation process
Geographical Extent
Parliamentary procedure

3 What the draft Order proposes and whether the statutory and other tests are met

Proposal A1: Modify the provision on minimum age for membership of an IPS and minimum age for becoming an officer of an IPS
Outline
Views of consultation respondents
Preconditions and tests
A2 Modify the rules on IPS share capital
Outline
Views of consultation respondents
Preconditions and tests
A3 Modify the provision on fees chargeable for copies of an IPS's rules
Outline
Views of consultation respondents
Preconditions and tests
A4 Facilitate easier dissolution of registered societies
Outline
Views of consultation respondents
Preconditions and tests
A5 Give societies the flexibility to choose their own accounting year end
Outline
Views of consultation respondents
Preconditions and tests
A6 Remove the requirement on societies to have interim accounts audited
Outline
Views of consultation respondents
Preconditions and tests
B1/B2 Replace the current "common bond" requirement for credit unions with a "field of membership" test and designate that test as the means to demonstrate a "common bond"
Outline
Views of consultation respondents
Preconditions and tests
B3 Reform the restrictions on non-qualifying members of credit unions
Outline
Views of consultation respondents
Preconditions and tests
B4 Allow credit unions to admit bodies corporate, unincorporated associations and partnerships to membership
Outline
Views of consultation respondents
Preconditions and tests
B5 Allow credit unions to offer interest on deposits, provided certain requirements are met
Outline
Views of consultation respondents
Preconditions and tests
B6 Abolish the 8 per cent per annum limit on dividends
Outline
Views of consultation respondents
Preconditions and tests
B7 Amend the "attachment" requirement, which restricts withdrawal of shares
Outline
Views of consultation respondents
Preconditions and tests
B8 Allow credit unions to charge the market rate for providing ancillary services to their members
Outline
Views of consultation respondents
Preconditions and tests

4 Conclusion
Annex 1
Annex 2
Appendix
Formal Minutes relating to the report
List of Reports from the Committee during the current Parliament

© Parliamentary copyright 2010
Prepared 29 March 2010