Credit Union and Co-operation with Overseas Regulators Act 2012

7.

Supplemental provisions relating to registration, etc., under section 6 of Principal Act.

7.— The Principal Act is amended by inserting the following section after section 6:

“6A.— (1) The Bank may impose such conditions, if any, as the Bank considers to be necessary to protect, with effect from registration under this Part, the interests of the members of the society seeking registration and any such conditions shall be a condition for registration as a credit union.

(2) The conditions imposed by the Bank under subsection (1) may include requiring a credit union—

( a) to notify the Bank of any events of such significance that could materially affect the credit union including any change to the strategic plan of the credit union;

( b) to operate a more limited business model agreed with the Bank;

( c) to cause to be undertaken an independent review of the credit union’s business within 12 months in order to ensure that the credit union is complying with all legal and regulatory requirements.

(3) Any of the conditions of registration may be amended or revoked by the Bank if, in the opinion of the Bank—

( a) the amendment or revocation is necessary to protect the interests of the credit union’s members, or

( b) the conditions concerned have become spent orobsolete and should be revoked.

(4) Whenever the Bank proposes to impose a condition in relation to a registration or to amend the conditions of a registration—

( a) it shall notify in writing the society seeking registration under this Part or the credit union concerned, as the case may be—

(i) that it intends to impose one or more than one condition in relation to the registration or to amend the existing conditions of the registration imposed under this section, as the case may be, and of its reasons for so doing, and

(ii) that the society or credit union concerned, as the case may be, may, within 15 working days after the date of the giving of the notification, make representations in writing to the Bank in relation to the imposition or amendment, as the case may be, and shall specify in the notification, the condition or the amendment, as the case may be,

and

( b) the society or credit union concerned, as the case may be, may make such representations to the Bank within the time referred to in paragraph ( a)(ii).

(5) Before deciding to impose conditions of registration, or an amendment of conditions of the registration, under this section, as the case may be, the Bank shall consider any representations duly made to it under subsection (4)( b) and, after so considering, the Bank may—

( a) decide to impose the conditions of registration, or the amendment of the conditions of the registration, under this section, as the case may be,

( b) decide to impose the conditions or amend the conditions of the registration under this section, as the case may be, that differ from those specified in the notification concerned, but only if the difference results in the conditions concerned being no more onerous than would be the case had the Bank decided to impose the conditions or amend the conditions of the registration, as the case may be, in accordance with the notification concerned, or

( c) without prejudice to subsections (1) to (3), decide not to impose the conditions or not to amend the conditions of the registration.”.