Financial Services and Markets Act 2000 (Permission and Applications) (Credit Unions etc.) Order 2002
| Jurisdiction | UK Non-devolved |
| Citation | SI 2002/704 |
| Year | 2002 |
2002 No. 704
FINANCIAL SERVICES AND MARKETS
The Financial Services and Markets Act 2000 (Permission and Applications) (Credit Unions etc.) Order 2002
Made 14th March 2002
Laid before Parliament 15th March 2002
The Treasury, in exercise of the powers conferred upon them by sections 426 to 428 of the Financial Services and Markets Act 20001, hereby make the following Order:
Citation, commencement and interpretation
1.—(1) This Order may be cited as the Financial Services and Markets Act 2000 (Permission and Applications) (Credit Unions etc.) Order 2002.
(2) This Order comes into force on 8th April 2002 for the purposes of articles 3, 4, 7 and 8 and on 2nd July 2002 for all other purposes.
(3) In this Order—
“the Act” means the Financial Services and Markets Act 2000;
“the 1979 Act” means the Credit Unions Act 19792;
“commencement” means the beginning of 2nd July 2002;
“credit union” means a society registered under the Industrial and Provident Societies Act 19653by virtue of section 1 of the 1979 Act4;
“deposit” has the same meaning as in article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 20015;
“unauthorised credit union” means a credit union which, immediately before commencement, is not an authorised person.
Credit unions registered at commencement
2.—(1) Any unauthorised credit union is to be treated as having, at commencement, a Part IV permission to accept deposits by way of subscription for its shares.
(2) The permission acquired by virtue of paragraph (1) is subject to any requirement imposed by virtue of article 5(1).
Requirement to reapply for Part IV permission
3.—(1) At any time on or before 1st July 2004, the Authority may give a direction under this article to a class of credit unions which is specified in the direction.
(2) A direction under this article is a direction that each credit union falling within the class specified in the direction must, before a date so specified, apply to the Authority under section 40 of the Act for a fresh permission to carry on the regulated activities which it wishes to carry on.
(3) Section 40(2) of the Act does not apply in relation to an application made in pursuance of the direction.
(4) If a credit union fails to comply with the direction, its Part IV permission ceases to have effect on the date specified under paragraph (2).
(5) If a credit union complies with the direction but the application which it makes in pursuance of it is refused, its Part IV permission ceases to have effect when the application is decided.
(6) If a credit union complies with the direction and in response to its application the Authority gives it a Part IV permission, that permission has effect, from the time when the application is decided, in place of the Part IV permission which the credit union had by virtue of this Order.
(7) For the purposes of this article, an application is decided when it has been determined and there is no possibility (or no further possibility) of the determination being reversed or varied on a reference to a tribunal or an appeal.
(8) No direction given under this article before commencement has effect until commencement.
Requirement to reapply: procedure
4.—(1) A direction given under article 3 must state the reasons why it has been given to the class of credit unions specified in the direction.
(2) The date specified in the direction under article 3(2) must be such as to allow a reasonable time for compliance, and in any event must fall after the end of three months beginning with the date when the direction has effect.
(3) If the Authority gives a direction under article 3, it must as soon as practicable, and in any event not later than the due date, give a copy to each credit union which does, or which it considers may on the due date, fall within the class of credit unions specified in the direction.
(4) “The due date” means the date three months before the date specified in the direction.
(5) If the Authority fails to give a copy of the direction to a credit union by the due date, the direction does not apply to it (and therefore article 3(4) does not apply to it) but if the Authority gives it a copy of the direction after the due date, the direction has effect in relation to that credit union as if the date specified in it under article 3(2) were three months after the date on which the copy was given to that credit union, and the copy must indicate that fact.
(6) Any failure by the Authority to comply with paragraph (3) does not invalidate the direction in relation to any credit union to which a copy is given in accordance with that paragraph.
Effect of restrictions and prohibitions under 1979 Act
5.—(1) Where immediately before commencement an unauthorised credit union was subject to a direction under section 19 of the 1979 Act6, that direction has effect after commencement as if it were a requirement imposed on that credit union under section 43 of the Act.
(2) For the purposes of the rules and guidance made prior to commencement by the Authority under Part X of the Act that relate to credit unions7, a credit union which, immediately before commencement, did not hold a certificate under section 11C of the 1979 Act8is to be treated from commencement as a version 1 credit union (and so, by virtue of rule 10.3.2 of the Credit Union Sourcebook9, such a credit union may not lend more than £10,000 in excess of the borrowing member’s shareholding).
(3) For the purposes of those rules and that guidance, a credit union which, immediately before commencement, held a certificate under that section is to be treated from commencement as a version 2 credit union(and so, by virtue of rule 10.3.4 of the Credit Union Sourcebook, such a credit union may lend up to £10,000 in excess of the borrowing member’s shareholding or 1.5% of the total shares in the credit union in excess of the borrowing member’s shareholding, whichever is the greater).
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