For registration, applicants must demonstrate to the satisfaction of the FSA that the statutory conditions set out in section 1 of the Credit Unions Act 1979 will be fulfilled. CRED 13 Annex 1 G contains a table listing these statutory conditions. CRED 13 Annex 2 G contains information about eligibility for membership of a credit union.3
One of the conditions is that the objects of the credit union are those, and only those, of a credit union. The objects are set out in full in CRED 13 Annex 1B4. Unless an activity is consistent with these objects, a credit union has no power to engage in it. It is important that a credit union satisfies itself that it has the necessary power before engaging in the activity. For instance, it is clear that a credit union is permitted to receive donations from an outside organisation, so may receive the proceeds from a lottery run by that organisation. Any such organisation will need to be independent from the credit union, with separate management and accounting.34
Another condition is that admission to membership of the credit union is restricted to persons who fulfil an appropriate membership qualification ("AMQ") and that in consequence a common bond exists among the members3 (see CRED 13 Annex 1A - CRED 13 Annex 1C)4.
The application pack contains the relevant forms for registration and explanatory notes on how to complete the forms. The notes also contain information about the appropriate membership qualifications for credit unions.3
Status: You are viewing the version of the handbook as on 2011-04-29.