The Financial Services and Markets Act 2000 (Permissions, Transitional Provisions and Consequential Amendments) (Northern Ireland Credit Unions) Order 2011

JurisdictionUK Non-devolved
CitationSI 2011/2832

2011 No. 2832

Financial Services And Markets

The Financial Services and Markets Act 2000 (Permissions, Transitional Provisions and Consequential Amendments) (Northern Ireland Credit Unions) Order 2011

Made 23th November 2011

Laid before Parliament 24th November 2011

The Treasury, in exercise of the powers conferred by sections 426 to 428 of the Financial Services and Markets Act 20001, make the following Order:

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Financial Services and Markets Act 2000 (Permissions, Transitional Provisions and Consequential Amendments) (Northern Ireland Credit Unions) Order 2011.

(2) This Order comes into force on—

(a)

(a) 15th December 2011 for the purposes of this article and article 10;

(b)

(b) 31st December 2011 for the purposes of articles 5 to 9; and

(c)

(c) 31st March 2012 for all other purposes.

(3) In this Order—

“the 1985 Order” means the Credit Unions (Northern Ireland) Order 19852;

“the Act” means the Financial Services and Markets Act 2000;

“the Authority” means the Financial Services Authority;

“commencement” means the beginning of 31st March 2012;

“credit union” means a society registered under the 1985 Order or a society registered under the Industrial and Provident Societies Act (Northern Ireland) 19693as a credit union.

1 Permissions and Applications etc.

PART 1

Permissions and Applications etc.

S-2 Credit unions registered at commencement

Credit unions registered at commencement

2.—(1) An unauthorised credit union is to be treated as having, at commencement, a Part 4 permission to accept deposits—

(a)

(a) by way of subscription for its shares; and

(b)

(b) from a person who is under the age at which they may become a member of the credit union by virtue of Article 15 of the 1985 Order.

(2) The permission acquired by virtue of paragraph (1) is subject to any restrictions imposed by virtue of article 3(1) or (2).

(3) In this Part—

“deposits” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 20014;

“P” is the person defined as such in article 4(1);

“Part 4 permission” has the meaning given in section 40(4) of the Act;

“unauthorised credit union” means a credit union which immediately before commencement is not an authorised person.

S-3 Effect of restrictions and prohibitions under the 1985 Order

Effect of restrictions and prohibitions under the 1985 Order

3.—(1) Where immediately before commencement an unauthorised credit union was subject to a direction under Article 59 of the 1985 Order, that direction has effect from commencement as if it were a requirement imposed on that credit union under section 43 of the Act (imposition of requirements).

(2) For the purposes of rules and guidance made before commencement by the Authority under Part 10 of the Act (rules and guidance) that relate to credit unions5, a credit union which, immediately before commencement—

(a)

(a) did not hold a certificate under Article 28C of the 1985 Order6is to be treated from commencement as a version 1 credit union for the purposes of the Credit Unions Sourcebook7; or

(b)

(b) held a certificate under that Article is to be treated from commencement as a version 2 credit union for the purposes of the Credit Unions Sourcebook.

(3) Paragraphs (1) and (2) are subject to anything done under the Act that has effect from or after commencement.

S-4 Approved persons

Approved persons

4.—(1) Where, at commencement, a person (“P”) is performing a function for an unauthorised credit union under an arrangement entered into by that credit union or by a contractor of that credit union, if P’s continued performance of that function after commencement would, but for this article, require the approval of the Authority under section 59(1) or (2) of the Act (approval), then that continued performance by P of that function after commencement is to be taken to have been approved by the Authority for the purposes of section 59 of the Act.

(2) Paragraph (1) does not apply if P performs a function by virtue of the fact that P holds or has held an office in a credit union and, immediately before commencement, P was ineligible by virtue of Article 39 of the 1985 Order to hold that office.

S-5 Requirement to reapply for Part 4 permission

Requirement to reapply for Part 4 permission

5.—(1) At any time on or before 31st March 2014, the Authority may give a direction under this article to a named unauthorised credit union or a specified class of unauthorised credit unions.

(2) A direction under this article is a direction that each credit union named or falling within the specified class must, before a date so specified, apply to the Authority under section 40 of the Act for 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, the Authority must consider whether to exercise the power in section 45 of the Act (variation etc. on the Authority’s own initiative)8and, for this purpose, section 45(1) applies as if there was added after sub-paragraph (c)—

“; or

(d)

(d) the person has failed to comply with a direction given by the Authority under article 5(1) of the Financial Services and Markets Act 2000 (Permissions, Transitional Provisions and Consequential Amendments) (Northern Ireland Credit Unions) Order 2011”.

(5) If a credit union complies with the direction but the application which it makes pursuant to it is refused, its Part 4 permission ceases to have effect on such date as the Authority may in its decision notice specify or, if no date is specified, when the matter is no longer open to review.

(6) If a credit union complies with the direction and the Authority gives it a Part 4 permission, that permission has effect on such date as may be specified in the Authority’s written notice in place of the Part 4 permission which the credit union had by virtue of article 2.

(7) For the purposes of this article and article 6, whether a matter is open to review is to be determined in accordance with section 391(8) of the Act.

(8) A direction given under this article or article 6 before commencement has effect on commencement.

S-6 Requirement to reapply for approved person status

Requirement to reapply for approved person status

6.—(1) At any time on or before 31st March 2014, the Authority may give a direction under this article to a named unauthorised credit union or a specified class of unauthorised credit unions.

(2) A direction under this article is a direction that each credit union named or falling within the specified class must, before a date so specified, apply to the Authority under section 60 of the Act (applications for approval) for approval under section 59(1) or (2) of the Act in relation to the performance by P of the function referred to in article 4(1).

(3) If a credit union fails to comply with the direction, the Authority must consider whether to exercise the power in section 63(1) of the Act (withdrawal of approval) to withdraw the approval P is taken to have by virtue of article 4(1), and for this purpose, section 63 applies as if for “given under section 59” there is substituted “taken to have been given under section 59 by virtue of article 4(1) of the Financial Services and Markets Act 2000 (Permissions, Transitional Provisions and Consequential Amendments) (Northern Ireland Credit Unions) Order 2011”.

(4) If a credit union complies with the direction but the application which it makes in pursuance of it is refused, P’s performance of the function ceases to be taken to have been approved by the Authority on such date as the Authority may in its decision notice specify or, if no date is specified, when the matter is no longer open to review.

(5) If a credit union complies with the direction and in response to its application the Authority approves the performance by P of the controlled function, that approval has effect on such date as may be specified in the Authority’s written notice in place of the approval which the credit union was taken to have by virtue of article 4(1).

S-7 Requirements to reapply: procedure

Requirements to reapply: procedure

7.—(1) A direction given under article 5 or 6 must state the reasons why it has been given to the named credit union or specified class of credit unions.

(2) The date specified in a direction under article 5(2) or 6(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 5 or 6, it must as soon as practicable, and in any event not later than the due date, give a copy to each named credit union and to each credit union which falls, or which it considers may on the due date, fall within the specified class of credit unions.

(4) If the Authority fails to give a copy of the direction to a credit union by the due date, the direction (and therefore articles 5(4) and 6(3)) do not apply to it. But if the Authority gives the credit union a copy of the direction after the due date the direction has effect in relation to that credit union as if the date specified under article 5(2) or 6(2) were three months after the date on which the copy was given to that credit union, and the copy must indicate that fact.

(5) In this article, “due date” means the date three months before the date specified in a direction.

(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 this article.

S-8 Pre-commencement applications etc.

Pre-commencement applications etc.

8.—(1) Sections 44 (variation etc. at request of authorised...

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