The Financial Services Authority and credit unions - A new era in regulation?

Journal of Financial Regulation and Compliance

Volumn 11, Issue 3, 2003, Pages 241-249

  Ryder, Nicholas ^a  

^a UNIVERSITY OF GLAMORGAN   (United Kingdom)

Author keywords

CRED; Credit union; Financial services authority; Perception; Protection

Indexed keywords

EID: 84993032827     PISSN: 13581988     EISSN: 17400279     Source Type: Journal    
DOI: 10.1108/13581980310810552     Document Type: Article

References (53)

1. Berthoud, R. and Hinton, T. (1989) ‘Credit unions in the United Kingdom’, Pinter Publishers Ltd, London.
2. See HM Treasury Press Release (1999) ‘Enhanced role for credit unions’, 16th November.
3. FSA (2000) ‘Credit unions: Time to stop being “Best kept secret” ', 3rd March.
4. Draft Financial Services and Markets Bill:First Report; House of Lords, 50 I-II; House of Commons, HC328 I-II. The other representative bodies within Great Britain are the Wales Co-operative Centre, the National Association of Credit Union Workers, the Scottish League of Credit Unions and the Independents.
5. HM Treasury (1999) ‘Report of Policy Action Team 14 - Access to financial services’, London.
6. HM Treasury (1999) ‘Credit unions of the future, Task Force Report’, London.
7. For a more detailed discussion see McCarthy, O. (2002) ‘A value perspective of the Irish Credit Union movement’, Journal of Co-operative Studies, Vol. 35, No. 2, pp. 128-140.
8. This objective is severely under publicised by the credit union movement and its representative bodies within Great Britain. This is surprising given the adverse publicity that both banks and building societies have received from consumer groups, customers, shareholders and the Government.
9. World Council of Credit Unions (WOCCU) (1984) ‘International credit union principles’, http://www.woccu.org/ princip.htm, 28th August (Accessed 5th July, 2000).
10. SP41 Association of British Credit Unions Limited Annual Conference and AGM, speech by Howard Davies, 3rd March, 2000.
11. FSA (2000) ‘Consultation Paper 77: The Regulation of Credit Unions’. See generally FSA (2002) ‘General Handbook -Credit Union Sourcebook’.
12. FSA (2001) ‘Credit unions: Feedback statement to CP77'.
13. FSA speech, Association of British Credit Unions Limited Annual Conference, by Shaun Mundy, 10th March, 2001.
14. FSA (2001).
15. HM Treasury Press Release (1999).
16. Ryder, N. (2002), ‘The Financial Services Authority and credit unions: The final piece of the jigsaw?', Nottingham Law Journal, Vol. 11, No. 2, pp. 1-16.
17. FSA (2001) ‘Credit unions: Feedback on CP94 compensation and complaints, Feedback on CP107 Credit Union Sourcebook’.
18. FSA (2002) ‘Consultation Paper 107:Credit Union Specialist Handbook -Draft Rules’.
19. FSA (2002) ‘General Handbook - Credit Union Sourcebook’.
20. For the accounting requirements of a credit union see s. 24 Credit Unions Act 1979 and generally the Friendly and Industrial and Provident Societies Act 1968.
21. For a more detailed analysis of the consultation papers see Ryder (2002) General Handbook - Credit Union Sourcebook.
22. FSA Press Release, FSA/PN/072/2002, FSA regulation ‘will allow credit unions to grow’, 2nd July, 2002.
23. CRED 4.
24. CRED 4.1.4.
25. In particular, a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems.
26. CRED 4.1.4.
27. CRED 4.3.5.
28. ABCUL (2000) ‘FSA - Approved Persons Regime’, ABCUL, Manchester.
29. A controlled function is defined as a position within a credit union that exerts a significant influence over the operations of a credit union. Such a function can only be undertaken by an approved person.
30. ABCUL (2000) FSA - Approved Persons Regime.
31. CRED 10.1.2. It is submitted that this is an example of the FSA attempting to meet its statutory objective of consumer protection. For a more detailed discussion see Ryder, N. (2001) ‘Two plus two equals financial education - The Financial Services Authority and consumer education’, The Law Teacher, Vol. 35, No. 2, pp. 216-232.
32. CRED 10.2.1.
33. CRED 10.2.3.
34. Section 11(2), Credit Unions Act 1979.
35. For a more detailed discussion see Ryder, N. (2003) ‘Credit unions in the United Kingdom: A critical analysis of their legislative framework and its impact upon their development’, Journal of Business Law, January, pp. 45-66.
36. CRED 10.3.1.
37. CRED 10.3.3.
38. CRED 10.3.4.
39. For a more detailed discussion see Burger, A. E. and Dacin, T. (1991) ‘Field of membership:An evolving concept’, Madison, Wisconsin, Filene Research Institute, Centre for Credit Union Research.
40. For a more detailed discussion see FSA (2002) ‘FSA Handbook - Money Laundering’.
41. For a more detailed discussion relating to how the FSA intends to counteract money laundering see Haynes, A. (2001) ‘The FSA moves in’, Company Lawyer, Vol. 22, No. 1, pp. 23-26.
42. FSA (2001) ‘Tackling the risk of money laundering in the financial services industry’, press release, 30th July, FSA/ PN/100/2001.
43. S.3 Financial Services and Markets Act 2000.
44. S.4 Financial Services and Markets Act 2000.
45. S.5 Financial Services and Markets Act 2000.
46. S.6 Financial Services and Markets Act 2000.
47. The Registry regulates industrial and provident societies under the Industrial Provident Societies Act 1965; building societies under the Building Societies Act 1986; friendly societies under the Friendly Societies Acts 1974 and 1992; societies other than friendly societies registered under the Friendly Societies Acts 1974.
48. Ryder (2003)
49. HM Treasury Press Release (1999)
50. For a more detailed discussion see The Guardian (2001) ‘Donations save credit unions’, 24th August; Philip Inman, ABCUL Press Release (2001) ‘Camberwell members money is safe’, 8th October and The Guardian (2002) ‘Compensation for credit union members’, 17th September. The only credit union to benefit from membership of the compensation scheme was Thameswood credit union in London. This credit union was closed by the FSA in September, 2002, when it was discovered to be heading for insolvency. For a more detailed discussion
51. Walne. T. (2002) ‘Clampdown shakes up the credit unions’, Financial Mail on Sunday, 22nd September.
52. Inter-Association Legislative Liaison Group (1997) ‘Common ground:National goals for improving the laws governing credit unions’, Manchester, ABCUL.
53. Cardiff credit union is in the process of being formed as an amalgamation of eight credit unions that serve the city. This means that all of those living and working in the Cardiff area will have the opportunity to join the credit union and benefit from access to low cost loans, secure savings and built-in life assurance. For a more detailed discussion see National Assembly for Wales Press Release (2002) ‘First Minister and Edwina Hart launch one of the UK’s first city-wide credit unions in Cardiff’, 18th July.