New Door Opens for UK Credit Unions

On the 8th November 2011, UK credit unions finally heard that the long awaited Legislative Reform Order (LRO) for Credit Unions and Industrial & Provident Societies, had been approved following its long journey through the Houses of Parliament and the House of Lords. The final step of the Parliamentary procedure has now been completed and is due take effect in January 2012, once the FSA has revised its regulatory rules and approved the credit union trade associations' model rules.

The regulatory changes offered by LRO, although not mandatory, will offer real benefits for the credit union movement as a whole, by removing some of the restrictions in the current legislative framework and allowing credit unions to choose to reach out to new members by serving more than one group of people. The previously restrictive common bond, will now be relaxed to allow credit unions to offer their services, for example to tenants of a housing association or employees of a national company, even if some tenants or employees live outside the geographical area that the credit union serves.

Credit unions will also be able to provide their savings and loans services to local unincorporated community groups, corporate businesses and social enterprises, giving them the opportunity to attract share capital and to lend to small businesses that may be unable to access funding through mainstream financial service providers.

Bill Hudson, Chair of NACUW said: "We have been waiting a long time for these regulatory changes to be approved and we know from our recently held Conference on International Credit Union day, that many of our members are keen to take advantage of the new opportunities that will be available to them, including having local businesses as signed up a members and the ability to spread their field of membership beyond the currently restrictive geographical borders in which they operate".

NACUW, along with all of the UK credit union trade associations, has played an integral role in the nurturing of the new legislative changes through its participation in the National Credit Union Liaison Group, which has met with the FSA on a regular basis over the past few years, to ensure the introduction of these new opportunities aimed at encouraging the long term sustainability of the credit union movement in the UK.


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about NACUW Annual Conference 2011 news & events training consultancy & research publications LRO now passed membership contact links terms & conditions	printable page New Door Opens for UK Credit Unions On the 8th November 2011, UK credit unions finally heard that the long awaited Legislative Reform Order (LRO) for Credit Unions and Industrial & Provident Societies, had been approved following its long journey through the Houses of Parliament and the House of Lords. The final step of the Parliamentary procedure has now been completed and is due take effect in January 2012, once the FSA has revised its regulatory rules and approved the credit union trade associations' model rules. The regulatory changes offered by LRO, although not mandatory, will offer real benefits for the credit union movement as a whole, by removing some of the restrictions in the current legislative framework and allowing credit unions to choose to reach out to new members by serving more than one group of people. The previously restrictive common bond, will now be relaxed to allow credit unions to offer their services, for example to tenants of a housing association or employees of a national company, even if some tenants or employees live outside the geographical area that the credit union serves. Credit unions will also be able to provide their savings and loans services to local unincorporated community groups, corporate businesses and social enterprises, giving them the opportunity to attract share capital and to lend to small businesses that may be unable to access funding through mainstream financial service providers. Bill Hudson, Chair of NACUW said: "We have been waiting a long time for these regulatory changes to be approved and we know from our recently held Conference on International Credit Union day, that many of our members are keen to take advantage of the new opportunities that will be available to them, including having local businesses as signed up a members and the ability to spread their field of membership beyond the currently restrictive geographical borders in which they operate". NACUW, along with all of the UK credit union trade associations, has played an integral role in the nurturing of the new legislative changes through its participation in the National Credit Union Liaison Group, which has met with the FSA on a regular basis over the past few years, to ensure the introduction of these new opportunities aimed at encouraging the long term sustainability of the credit union movement in the UK.