| Guvnor

Enforced by: PRA
Status: Amended (in force with amendments)
Penalty ceiling: Prosecution 1 of 24 obligations carry a fine up to £1,000. 23 have no criminal penalty — flagged in the list below.

Does it bind you?

Business-side roles with duties under this instrument.

Financial Services Firm16 Any Person5

Plus 3 duties on the regulator, Crown ministers and public bodies — folded into the section list below.

Other Acts binding the same actors

If a role above is yours, these are the other instruments that most often bind it.

Financial Services Firm — also bound by 167 other Acts

Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance) 63 duties

Friendly Societies Act 1992 52 duties

Commission Delegated Regulation (EU) No 153/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on requirements for central counterparties (Text with EEA relevance) 52 duties

The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges , Clearing Houses and Central Securities Depositories ) Regulations 2001 50 duties

The Credit Unions (Northern Ireland) Order 1985 43 duties

Any Person — also bound by 2340 other Acts

Human Medicines Regulations 2012 184 duties

Merchant Shipping Act 1995 144 duties

Insolvency (England and Wales) Rules 2016 104 duties

Communications Act 2003 92 duties

Road Traffic Act 1988 92 duties

What it requires

Sections creating concrete business duties or carrying penalties, grouped as the instrument is structured. Titles link to the source text — blue means you’re leaving for legislation.gov.uk.

s.001 Registration. Regulated

Other duties (1) — Crown / regulator

FCA must not register a credit union unless deposit permission is proposedStatutory regulator

s.003 Use of name “credit union", etc. Regulated

Do not use 'credit union' unless you are registered as oneFinancial Services Firm

s.004 Rules. Regulated

Maintain credit union rules in FCA-approved form and amend only by member voteFinancial Services Firm

s.005 Membership and voting rights. Regulated

Credit unions must not require more than £5 shareholding for membershipFinancial Services Firm

s.005 Corporate members Regulated

Keep corporate membership and share allocations within legal limitsFinancial Services Firm

s.007 Shares. Regulated

Credit union share rules for members and operationsFinancial Services Firm

s.007 Power to issue interest-bearing shares Regulated

Credit unions must meet financial and reporting conditions to issue interest-bearing sharesFinancial Services Firm

s.008 General prohibition on deposit-taking. Regulated

Credit unions must not accept deposits except as share subscriptionsFinancial Services Firm

s.011 Loans. Regulated

Cap loan interest rate at 1% per month (or Treasury-specified rate)Financial Services Firm

s.011 Conditional sale and hire purchase agreements Regulated

Comply with conditions for conditional sale and hire purchase agreements with membersFinancial Services Firm

s.016 Guarantee funds. Regulated

Obtain PRA approval before setting up guarantee fund arrangementsFinancial Services Firm

s.017 Power to require information. Prosecution

Fail to comply with information noticeAny Person

Fine up to £1,000

s.021 Amalgamations and transfers of engagements. Regulated

Do not amalgamate or transfer engagements with non-credit unionsFinancial Services Firm

s.026 Prohibition on subsidiaries. Regulated

You must not own any subsidiary companiesFinancial Services Firm

36 other provisions — procedural and definitional

s.001 Common bonds appropriate to a credit union

s.001 Further requirements where common bond relates to locality

s.001 Specified financial activities

s.001 Power to specify further financial activities

s.002 Supplementary and transitional provisions as to registration.

s.006 Minimum and maximum number of members.

s.009 Deposits by persons too young to be members.

s.009 Power to charge for ancillary services

s.010 Power to borrow money.

s.011 Loans to be treated as secured

s.011 Loans by approved credit unions

s.011 Grant of certificates of approval

s.011 Withdrawal of certificates of approval

s.011 Agreements to be treated as secured

s.011 Insurance distribution activities

s.012 Power to hold land for limited purposes.

s.013 Investments.

s.014 Computation and application of profits.

s.015 Insurance against fraud or other dishonesty.

s.017 Section 17: recovery of FCA ’s and PRA ’s costs

s.018 Power to appoint inspector and call meeting.

s.019 Power to suspend operations of credit union.

s.020 Cancellation or suspension of registration and petition for winding up.

s.022 No conversion of credit union into company,

s.023 Conversion of company into credit union.

s.023 Power to make provision corresponding to provision applying to building societies

s.024 Modifications of requirements as to audit of accounts.

s.025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

s.027 Prohibition on undischarged bankrupts and other persons.

s.028 Provisions as to offences.

s.029 Orders and regulations.

s.030 Expenses and fees.

s.031 Interpretation, etc.

s.031 (1) In this Act, references to deferred shares are to...

s.032 Northern Ireland.

s.033 Short title, commencement and extent.

Schedules

10 of 24 shown

s.sch001 The name of the society, which shall comply with section... Regulated

Ensure your credit union's name is not undesirable and ends with 'limited'Financial Services Firm

s.sch001 Provision for the withdrawal of members from the society and... Regulated

Include rules for member withdrawal and claims on death or bankruptcyAny Person

s.sch001 Provision for— (a) terminating the membership of corporate members in... Regulated

Include provisions in rules for terminating corporate memberships and repaying shares to comply with limitsFinancial Services Firm

s.sch001 If the issue of interest-bearing shares is permitted, provision for... Regulated

Make provision to convert interest-bearing shares to non-interest-bearing to comply with the lawFinancial Services Firm

s.sch001 Provision for the dissolution of the society, including provision requiring... Regulated

Include dissolution provisions in your credit union rulesAny Person

s.sch001 The terms of admission to membership of the society, including... Regulated

Include membership admission terms and share insurance in rulesAny Person

s.sch001 Determination (subject to any applicable rules made by the FCA... Regulated

Set maximum shareholding limit per member in your credit union's rulesAny Person

s.sch001 The mode and circumstances in which loans to members or... Regulated

Credit unions must have rules governing loans to members and other credit unionsFinancial Services Firm

s.sch002 Not less than fourteen days before giving a direction, the... Regulated

Other duties (1) — Crown / regulator

Authority must give credit union notice before issuing directionStatutory regulator

s.sch002 Notice of the giving of a direction shall be published... Regulated

Other duties (1) — Crown / regulator

PRA must publish notice of directions in the GazetteStatutory regulator

14 other schedules

s.sch001 Provision for the custody and use of the society’s seal....

s.sch001 Provision for the audit of accounts in accordance with Part...

s.sch001 The objects of the society.

s.sch001 The place which is to be the registered office of...

s.sch001 The qualifications for admission to membership of the society, including...

s.sch001 The mode of holding meetings, including provision as to the...

s.sch001 The appointment and removal of a committee, by whatever name,...

s.sch001 Provision for the mode of withdrawal of shares and for...

s.sch002 The Authority shall consider any representations with respect to the...

s.sch002 (1) On giving such a direction the Authority shall serve...

s.sch002 A notice under this Schedule may be served on a...

s.sch002 Failure to serve a notice under this Schedule on a...

s.sch003 (1) The chief registrar may, by order made with the...

s.sch003 (1) When it appears to the Treasury that, the relevant...

Connected legislation

Instruments made under this Act. They carry the detail the Act delegates.

The Credit Unions Act 1979 (Commencement No. 3) Order 2003 SI 2003/306

Duty extraction and severity labels are Guvnor’s analysis of the instrument, not the instrument itself. Always verify against the linked source text.