49.—(1) An application by a credit union for the approval of the provision of additional services of any description (in this section referred to as an “approval application”) shall be made to the F85[Bank] in such manner as F85[it] may by rules direct, and shall be accompanied by such information as may be so specified.

(2) Without prejudice to the generality of the powers of the F85[Bank] under subsection (1), an approval application shall include information about—

(a) the protection of members for whom the services are to be provided from conflicts of interest that might otherwise arise in connection with the provision of the services;

(b) the provision proposed for securing that adequate compensation is available to those members in respect of negligence, fraud or other dishonesty on the part of officers F86[…] of the credit union in connection with the provision of the services;

(c) the extent to which and the manner in which the provision of the services will require the involvement of persons with particular qualifications or experience;

(d) the cost of providing the services;

(e) the income expected to accrue from any charges made for the services; and

(f) the credit union’s proposed principal, in a case where the approval application relates to the provision of services by the credit union as agent for another;

and, where an approval application relates to the provision of additional services of more than one description, the information referred to above shall be given separately in respect of each description of services.

(3) Having considered an approval application (which complies with subsections (1) and (2)), the F85[Bank] shall give notice, either—

(a) granting approval;

(b) refusing to grant approval; or

(c) granting approval subject to whatever conditions (including restrictions or exclusions) F85[it] considers appropriate;

and the F85[Bank] shall not grant an approval application in respect of any description of additional services unless F85[it] is satisfied that the resolution required by section 48 (4) (a) in relation to services of that description has been passed.

(4) In making F85[its] decision on an approval application, the F85[Bank] shall have regard to the interests of the public and of the members and creditors of the credit union, to the orderly and proper regulation of the business of the credit union and to such other considerations as F85[it] thinks proper.

(5) Subject to subsection (6), within four months of the date on which F85[it] receives an approval application, the F85[Bank] shall either notify the credit union of F85[its] decision on the application or require the credit union to supply to F85[it] such additional information as F85[it] considers necessary to enable F85[it] to reach a decision and, where the F85[Bank] requires the provision of such additional information, F85[it] shall notify the credit union of F85[its] decision on the approval application not later than four months from the date of F85[its] receipt of that additional information.

(6) Where an approval application relates to the provision of services by the credit union as agent (and not also as principal), subsection (5) shall have effect with the substitution for any reference to four months of a reference to two months.

(7) Without prejudice to the generality of subsection (3)(c), the conditions which the F85[Bank] may impose in granting an approval application may, in particular, include provisions about—

(a) the amount of funds that may be applied by the credit union to the services;

(b) whether the credit union may act as principal or agent in providing the services;

(c) the period during which the services may be provided;

(d) limits on any guarantees, bonds, contracts of suretyship or indemnities given or entered into by the credit union;

(e) whether and to what extent the approval of the F85[Bank] is to be obtained in respect of particular proposals;

(f) the qualifications required to be held by officers F87[…] of the credit union providing the services;

(g) the avoidance of conflicts of interest;

(h) the charges to be made in relation to the provision of any services;

(i) the preparation of accounts in respect of services being provided;

and different conditions may be so imposed in relation to different descriptions of additional services.

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