Credit Union and Co-operation with Overseas Regulators Act 2012

8.

Savings.

8.— The Principal Act is amended by substituting the following for section 27:

“27.— (1) A credit union may raise funds to be used for its objects—

( a) by the issue to its members of shares in the credit union (which may be withdrawable or non-withdrawable), and

( b) by the acceptance of money on deposit from a member,

and the cumulative amount of such shares in, and money on deposit (if any) with, the credit union is referred to in this Act as ‘savings’.

(2) For the adequate protection of the savings of members of credit unions the Bank may prescribe requirements and limits for savings, including—

( a) the maximum amount of savings (expressed as a monetary amount or as a percentage of some monetary amount or determinable monetary amount) or category of savings a credit union member may hold,

( b) the ratio of total deposits from members that may be held by a credit union to total shares issued to members, and

( c) any other requirement or limit which the Bank considers necessary to prescribe.

(3) In prescribing matters for the purposes of this section, the Bank shall have regard to the need to ensure that the requirements imposed by the regulations made by it are effective and proportionate having regard to the nature, scale and complexity of credit unions, or the category or categories of credit unions, to which the regulations will apply.”.