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CREDIT UNION NEWS
A Legislative Reform Order (LRO) was published by the Government earlier today (30th July). It will modernise the legal framework for credit unions in Britain and has been warmly welcomed by ABCUL and its members (including ourselves).
“We’re very pleased that a draft Legislative Reform Order to update credit union legislation in Britain has now been published,” says Mark Lyonette, Chief Executive of ABCUL. “The proposed changes are essential if credit unions are to realise their full potential in this country and the publication of the LRO reaffirms the Government’s commitment to the sector.”
Important changes will give credit unions the flexibility to accept local community groups, companies and social enterprise into membership and allow existing credit unions to extend membership to new groups of people, such as housing association tenants and employees of nationwide companies. This will allow large numbers of people to benefit from credit union services for the first time.
Credit unions will also be able to choose to pay interest on savings instead of a dividend and develop new services to meet the needs of their members.
Mark Lyonette adds: “These vital changes will allow the credit union sector in Britain to scale up and deliver a wider range of services to many more people across the country.”
The LRO is expected to be laid in Parliament when MPs return to Westminster in October. The availability of the draft LRO means that the Financial Services Authority can now begin to consult on regulatory changes.
