The name of the society, which shall comply with section...
- Ensure your credit union's name is not undesirable and ends with 'limited'
UK Act of Parliament
1979
United Kingdom
Credit Unions Act 1979
At a glance
Enforced by
What's here
21 compliance obligations · 1 statutory instrument
Who this Act binds
Plus 1 non-business duty on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Schedules
Provision for the withdrawal of members from the society and...
- Include rules for member withdrawal and claims on death or bankruptcy
Provision for— (a) terminating the membership of corporate members in...
- Include provisions in rules for terminating corporate memberships and repaying shares to comply with limits
If the issue of interest-bearing shares is permitted, provision for...
- Make provision to convert interest-bearing shares to non-interest-bearing to comply with the law
Provision for the dissolution of the society, including provision requiring...
- Include dissolution provisions in your credit union rules
The terms of admission to membership of the society, including...
- Include membership admission terms and share insurance in rules
Determination (subject to any applicable rules made by the FCA...
- Set maximum shareholding limit per member in your credit union's rules
The mode and circumstances in which loans to members or...
- Credit unions must have rules governing loans to members and other credit unions
Browse 16 other Schedules — structural / supplementary
Provision for the custody and use of the society’s seal....
Provision for the audit of accounts in accordance with Part...
The objects of the society.
The place which is to be the registered office of...
The qualifications for admission to membership of the society, including...
The mode of holding meetings, including provision as to the...
The appointment and removal of a committee, by whatever name,...
Provision for the mode of withdrawal of shares and for...
Not less than fourteen days before giving a direction, the...
The Authority shall consider any representations with respect to the...
(1) On giving such a direction the Authority shall serve...
A notice under this Schedule may be served on a...
Failure to serve a notice under this Schedule on a...
Notice of the giving of a direction shall be published...
(1) The chief registrar may, by order made with the...
(1) When it appears to the Treasury that, the relevant...
Registration.
Other duties (1) — Crown / regulator
- FCA must not register a credit union unless deposit permission is proposed Statutory regulator
Use of name “credit union", etc.
- Do not use 'credit union' unless you are registered as one
Rules.
- Maintain credit union rules in FCA-approved form and amend only by member vote
Membership and voting rights.
- Credit unions must not require more than £5 shareholding for membership
Corporate members
- Keep corporate membership and share allocations within legal limits
Shares.
- Credit union share rules for members and operations
Power to issue interest-bearing shares
- Credit unions must meet financial and reporting conditions to issue interest-bearing shares
General prohibition on deposit-taking.
- Credit unions must not accept deposits except as share subscriptions
Loans.
- Cap loan interest rate at 1% per month (or Treasury-specified rate)
Conditional sale and hire purchase agreements
- Comply with conditions for conditional sale and hire purchase agreements with members
Guarantee funds.
- Obtain PRA approval before setting up guarantee fund arrangements
Amalgamations and transfers of engagements.
- Do not amalgamate or transfer engagements with non-credit unions
Prohibition on subsidiaries.
- You must not own any subsidiary companies
Browse 37 other sections — procedural / definitional / commencement
Common bonds appropriate to a credit union
Further requirements where common bond relates to locality
Specified financial activities
Power to specify further financial activities
Supplementary and transitional provisions as to registration.
Minimum and maximum number of members.
Deposits by persons too young to be members.
Power to charge for ancillary services
Power to borrow money.
Loans to be treated as secured
Loans by approved credit unions
Grant of certificates of approval
Withdrawal of certificates of approval
Agreements to be treated as secured
Insurance distribution activities
Power to hold land for limited purposes.
Investments.
Computation and application of profits.
Insurance against fraud or other dishonesty.
Power to require information.
Section 17: recovery of FCA ’s and PRA ’s costs
Power to appoint inspector and call meeting.
Power to suspend operations of credit union.
Cancellation or suspension of registration and petition for winding up.
No conversion of credit union into company,
Conversion of company into credit union.
Power to make provision corresponding to provision applying to building societies
Modifications of requirements as to audit of accounts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prohibition on undischarged bankrupts and other persons.
Provisions as to offences.
Orders and regulations.
Expenses and fees.
Interpretation, etc.
(1) In this Act, references to deferred shares are to...
Northern Ireland.
Short title, commencement and extent.
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- The FCA and mutual societies | FCA (opens in a new tab) from FCA Detailed Guidance
- Mutual societies: forms | FCA (opens in a new tab) from FCA Form or Template
- Changes to credit union legislation in Great Britain | FCA (opens in a new tab) from FCA Detailed Guidance
- Registered mutual society rules and obligations | FCA (opens in a new tab) from FCA Detailed Guidance
- Annual returns and accounts: mutual societies | FCA (opens in a new tab) from FCA Detailed Guidance
- Supervision: Credit unions | Bank of England (opens in a new tab) from PRA Detailed Guidance
- Regulatory reporting: Credit unions | Bank of England (opens in a new tab) from PRA Detailed Guidance
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
Prudential Regulation Authority
Part of the Bank of England. Prudentially regulates and supervises around 1,292 banks, building societies, credit unions, insurers, and major investment firms. …
Connected legislation
1 statutory instrument
These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.
Secondary legislation (1)
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Browse legislation
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Regulators
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