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Status: You are viewing the version of the handbook as on 2009-03-31.

CRED 13.2A 1Use of name "credit union"

CRED 13.2A.1G

Section 3 of the Credit Unions Act 1979 (as amended) makes the following provisions about the use of the name "credit union":

  1. (1)

    under section 3(1), every credit union with its registered office:

    1. (a)

      in England or Scotland should have "credit union" in its name;

    2. (b)

      in Wales should have "credit union" or "undeb credyd" in its name;

  2. (2)

    under section 3(2), unless one is registered as a credit union, it is an offence to:

    1. (a)

      refer to oneself as a "credit union" or "undeb credyd", or any related words;

    2. (b)

      represent oneself as being a credit union;

    subject to section 3(3) (see CRED 13.2A.1 G (3));

  3. (3)

    section 3(3) provides that section 3(2) (see CRED 13.2A.1 G (2)) does not apply:

    1. (a)

      to specified overseas deposit-takers;

    2. (b)

      to a person who has the FSA's written approval;

    3. (c)

      where an officer or employee uses a title or descriptive expression indicating his office or post with:

      1. (i)

        a credit union; or

      2. (ii)

        an organisation in CRED 13.2A.1 G (3)(a) or CRED 13.2A.1 G (3)(b).

CRED 13.2A.2G

The effect of section 3 of the Credit Unions Act 1979 (see CRED 13.2A.1 G) is that if one of the following organisations, for example, wishes to use the words "credit union" in its name, it will need the approval in writing of the FSA:

  1. (1)

    a study group working towards registration as a credit union;

  2. (2)

    a body representing or providing services to credit unions.

CRED 13.2A.3G

Approval for study groups (CRED 13.2A.2 G (1)) will generally be limited to a period of no more than 2 years.

CRED 13.2A.4G

The organisations in CRED 13.2A.2 G are subject to the general prohibition mentioned in CRED 7A.3.2 G (1), which means that they cannot accept deposits.