NEWS & EVENTS

Legislative Reform Order for Credit Unions

Changing Times - Get ready for the April 2010

New legislation for credit unions, due to be launched in April 2010, will provide UK credit unions with real opportunities to grow and develop by radically reducing the number of regulatory restrictions that are currently putting a ceiling on their expansion. Under the new legislative proposals credit unions will be able to reach out to new members beyond the current “common bond” restrictions and even allow Corporate membership, aimed at increasing levels of capital investment within the movement. In addition to a new “field of membership” qualification, credit unions will be given the opportunity to mix “common bonds” thus enabling credit unions to reach out to more members and improve both their long term strength and stability. The opportunity to offer interest bearing accounts will also be possible for credit unions with strong reserve levels and the 8% restriction on dividends will be abolished, leaving it up to credit unions to decide their own rate.

The Legislative Reform Order itself will be published shortly and a further consultation period will follow to ensure that the terms of the order fit with the needs of the movement and are of sufficient public interest to warrant their passing via secondary legislation. It is hoped that the LRO will be passed by Parliament before the Summer Recess and that the legislative changes will come into action in April 2010.

Management and Leadership Training Programme updated

The four remaining courses in this innovative programme (funded by the Tudor Trust) are scheduled for May, June and July 2009. This programme offers staff and volunteers working in credit unions, and those involved in the Community Banking Partnerships (CBP), training sessions specially developed, designed and tailored to meet their specific requirements as identified in our analysis of training needs.

Credit unions featured on BBC News

"Credit unions in Wales have seen a big surge in demand for loans amid the economic downturn, with many people refused help by the banks." Read more in the recent BBC Wales news item. (A print-friendly version and PDF version are also available).

The Social Fund: A new approach for credit unions?

The Government has signalled its intention to explore the scope of the Social Fund. Can it provide more effective help to allow more people to overcome financial exclusion? The Social Fund currently signposts people to sources of free debt advice but does not itself provide advice or make a direct link to other financial services.

A consultation is in progress, "The Social Fund: A new approach", inviting views on a range of proposals to improve the help given to people at a time when many families are struggling. The focus of debate is on partnership with third sector organisations such as Credit Unions to deliver the loans to Social Fund customers as well as financial advice and other financial services.

The deadline for responses to these proposals is December 23^rd.

Unfortunately the credit union sector was not fully notified about the consultation and it has only recently come to our attention. Nevertheless NACUW, along with credit union trade bodies, will be submitting a summary of the initial views of its members. This proposal could signal a major opportunity for our movement or it might introduce unwelcome new complications. Whichever, this consultation needs your input.

Please can you make sure you read this document and let us know what you think by Monday 22^nd December.

The consultation document can be downloaded at: www.dwp.gov.uk/consultations/2008/social-fund-new-approach.asp

After the credit crunch.... what next?

All of us in the credit union world are acutely aware of the impact and implications of the current financial turmoil. But could our economic architecture be in fact fatally flawed? Are we witnessing the end of the so called 'free market model'? Should we be planning for a very different future where credit unions and other community finance institutions become the new banks on our high street? Whilst many economists are predicting a recession in the traditional sense, others are questioning whether or not we are heading for something far worse. And if that is the case is now then the time to demand that we should be looking for a fairer and saner model, rather than trying to prop up the older corrupt one.

The new economics foundation is one organisation that is making such a call and has recently been advocating a 'Green New Deal' to address the financial meltdown, alongside climate change and the imminent peaking of many key resources. Now as part of that process nef are prioritising 20 steps that need to be made in order to rebuild a better economy. One of these steps is strongly advocating credit unions and the Community Banking Partnership approach. See how we can be part of a very different future.

You can download a copy of this report from our publications page.

Follow this link to download this important new report: From the Ashes of the Crash

MLRO fined by FSA

The Financial Services Authority (FSA) has issued a £17,500 fine to the money laundering reporting officer (MLRO) of a corporate advisory firm. The fine was levied because the officer in question did not have adequate systems and controls in place for verifying and recording client identity. The FSA also fined Sindicatum Holdings, where the officer worked, for procedural failings in verifying the identity of its clients. The FSA's head of retail enforcement described the fines as a warning to firms and to individuals who fall short of the Authority's rules in the area of money laundering.

The case breaks new ground as it is the first time the FSA has fined an individual money laundering compliance officer, although no evidence of money laundering came to light during the FSA enquiries.

For a concise outline of money laundering reporting requirements, see the presentation given at this year's NACUW Annual Conference.

New NACUW/NEF report launched

Self-help and mutual aid (2008)

A mutual for the self-employed – underpinning local economies across Britain. Our latest report launched by the Welsh Assembly Minister this summer shows the importance of credit unions supporting the self-employed sector of our market.

Conaty and Brown, nef publications.

Hard copy available from our administration department.

A new NACUW report, researched jointly with the new economics foundation, was launched by a Welsh Assembly Government Minister during the conference to mark the life and works of Robert Owen, founder of the co-operative movement.

Micro-businesses and the self-employed form a large and crucial part of the UK economy. They make a major contribution to the vitality of local economies and to their communities and to culture. Very often, they define the character of a place. They provide the small shops, services, crafts that are the economic life blood of local communities across the UK. Their dealings with each other give life to an urban neighbourhood or a rural village. Community life is unthinkable without their contribution. They are also a crucial sector of our credit union membership.

Our research shows this sector needs better support and access to financial services. It proposes a mutual model to provide this, and sees credit unions having a beneficial role to play in this valuable market.

CBP project wins major Fuel Poverty award

Congratulations to the Robert Owen CBP in Powys on scooping the top prize in Wales for their entry in Feel the Heat – an award scheme sponsored by SWALEC and run by the leading fuel poverty charity, NEA, which is supported by the Welsh Assembly Government. Apart from the prestige, a very handy £1500 prize was received by Gill Williams who heads up the project. The project is one of the more innovative money advice services that credit unions are presently running. To find out more, come to this year's Conference where it will be featured as one of many exemplar projects.

"If you think training is expensive, try ignorance"

Yes we all know the old adage, but training is still an aspect of business development that we often fail to prioritise sufficiently - and to our cost. NACUW is looking into how better training can be designed around the needs of busy staff and volunteers in credit unions. Take two minutes to fill in our quick survey and tell us what you really think about training.


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about NACUW news & events LRO for CUs job vacancies May 2009 Summer 2008 News training consultancy & research publications membership contact links terms & conditions	printable page NEWS & EVENTS Legislative Reform Order for Credit Unions Changing Times - Get ready for the April 2010 New legislation for credit unions, due to be launched in April 2010, will provide UK credit unions with real opportunities to grow and develop by radically reducing the number of regulatory restrictions that are currently putting a ceiling on their expansion. Under the new legislative proposals credit unions will be able to reach out to new members beyond the current “common bond” restrictions and even allow Corporate membership, aimed at increasing levels of capital investment within the movement. In addition to a new “field of membership” qualification, credit unions will be given the opportunity to mix “common bonds” thus enabling credit unions to reach out to more members and improve both their long term strength and stability. The opportunity to offer interest bearing accounts will also be possible for credit unions with strong reserve levels and the 8% restriction on dividends will be abolished, leaving it up to credit unions to decide their own rate. The Legislative Reform Order itself will be published shortly and a further consultation period will follow to ensure that the terms of the order fit with the needs of the movement and are of sufficient public interest to warrant their passing via secondary legislation. It is hoped that the LRO will be passed by Parliament before the Summer Recess and that the legislative changes will come into action in April 2010. Management and Leadership Training Programme updated The four remaining courses in this innovative programme (funded by the Tudor Trust) are scheduled for May, June and July 2009. This programme offers staff and volunteers working in credit unions, and those involved in the Community Banking Partnerships (CBP), training sessions specially developed, designed and tailored to meet their specific requirements as identified in our analysis of training needs. Credit unions featured on BBC News "Credit unions in Wales have seen a big surge in demand for loans amid the economic downturn, with many people refused help by the banks." Read more in the recent BBC Wales news item. (A print-friendly version and PDF version are also available). The Social Fund: A new approach for credit unions? The Government has signalled its intention to explore the scope of the Social Fund. Can it provide more effective help to allow more people to overcome financial exclusion? The Social Fund currently signposts people to sources of free debt advice but does not itself provide advice or make a direct link to other financial services. A consultation is in progress, "The Social Fund: A new approach", inviting views on a range of proposals to improve the help given to people at a time when many families are struggling. The focus of debate is on partnership with third sector organisations such as Credit Unions to deliver the loans to Social Fund customers as well as financial advice and other financial services. The deadline for responses to these proposals is December 23^rd. Unfortunately the credit union sector was not fully notified about the consultation and it has only recently come to our attention. Nevertheless NACUW, along with credit union trade bodies, will be submitting a summary of the initial views of its members. This proposal could signal a major opportunity for our movement or it might introduce unwelcome new complications. Whichever, this consultation needs your input. Please can you make sure you read this document and let us know what you think by Monday 22^nd December. The consultation document can be downloaded at: www.dwp.gov.uk/consultations/2008/social-fund-new-approach.asp After the credit crunch.... what next? All of us in the credit union world are acutely aware of the impact and implications of the current financial turmoil. But could our economic architecture be in fact fatally flawed? Are we witnessing the end of the so called 'free market model'? Should we be planning for a very different future where credit unions and other community finance institutions become the new banks on our high street? Whilst many economists are predicting a recession in the traditional sense, others are questioning whether or not we are heading for something far worse. And if that is the case is now then the time to demand that we should be looking for a fairer and saner model, rather than trying to prop up the older corrupt one. The new economics foundation is one organisation that is making such a call and has recently been advocating a 'Green New Deal' to address the financial meltdown, alongside climate change and the imminent peaking of many key resources. Now as part of that process nef are prioritising 20 steps that need to be made in order to rebuild a better economy. One of these steps is strongly advocating credit unions and the Community Banking Partnership approach. See how we can be part of a very different future. You can download a copy of this report from our publications page. Follow this link to download this important new report: From the Ashes of the Crash MLRO fined by FSA The Financial Services Authority (FSA) has issued a £17,500 fine to the money laundering reporting officer (MLRO) of a corporate advisory firm. The fine was levied because the officer in question did not have adequate systems and controls in place for verifying and recording client identity. The FSA also fined Sindicatum Holdings, where the officer worked, for procedural failings in verifying the identity of its clients. The FSA's head of retail enforcement described the fines as a warning to firms and to individuals who fall short of the Authority's rules in the area of money laundering. The case breaks new ground as it is the first time the FSA has fined an individual money laundering compliance officer, although no evidence of money laundering came to light during the FSA enquiries. For a concise outline of money laundering reporting requirements, see the presentation given at this year's NACUW Annual Conference. New NACUW/NEF report launched Self-help and mutual aid (2008) A mutual for the self-employed – underpinning local economies across Britain. Our latest report launched by the Welsh Assembly Minister this summer shows the importance of credit unions supporting the self-employed sector of our market. Conaty and Brown, nef publications. Hard copy available from our administration department. A new NACUW report, researched jointly with the new economics foundation, was launched by a Welsh Assembly Government Minister during the conference to mark the life and works of Robert Owen, founder of the co-operative movement. Micro-businesses and the self-employed form a large and crucial part of the UK economy. They make a major contribution to the vitality of local economies and to their communities and to culture. Very often, they define the character of a place. They provide the small shops, services, crafts that are the economic life blood of local communities across the UK. Their dealings with each other give life to an urban neighbourhood or a rural village. Community life is unthinkable without their contribution. They are also a crucial sector of our credit union membership. Our research shows this sector needs better support and access to financial services. It proposes a mutual model to provide this, and sees credit unions having a beneficial role to play in this valuable market. CBP project wins major Fuel Poverty award Congratulations to the Robert Owen CBP in Powys on scooping the top prize in Wales for their entry in Feel the Heat – an award scheme sponsored by SWALEC and run by the leading fuel poverty charity, NEA, which is supported by the Welsh Assembly Government. Apart from the prestige, a very handy £1500 prize was received by Gill Williams who heads up the project. The project is one of the more innovative money advice services that credit unions are presently running. To find out more, come to this year's Conference where it will be featured as one of many exemplar projects. "If you think training is expensive, try ignorance" Yes we all know the old adage, but training is still an aspect of business development that we often fail to prioritise sufficiently - and to our cost. NACUW is looking into how better training can be designed around the needs of busy staff and volunteers in credit unions. Take two minutes to fill in our quick survey and tell us what you really think about training.