Credit Union Legislation Granted Royal Assent in Parliament

Friday 26 January 2024

This week, the long-awaited new Credit Union Legislation has completed its journey through Parliament and was granted Royal Assent. The bill will impact a wide range of financial services organisations with a number of changes for Credit Unions, allowing for new products and services.

The bill will allow credit unions to offer hire purchase & conditional sale agreements, and insurance distribution. These amendments represent some of the most significant changes to the Credit Union Act in over 40 years, and will allow credit unions to offer a range of products to suit the needs of a modern member.

Once the new provisions are in place credit unions who wish to offer any of the new products or services are required to complete the following steps:

•  Amend their rules to add the new object – This change must then be ratified at a SGM or AGM. This cannot be completed in advance of the changes to the Act.
• Apply for a Consumer Credit License if looking to offer hire purchase and conditional sale agreements.

ABCUL CEO, Robert Kelly, said of the bill receiving Royal Assent “The bill being received will bring pivotal transformation to the credit union sector in Britain. ABCUL will support member credit unions who wish to take advantage of the changes through thought leadership, facilitating sharing of best practice and practical support. Later this year, we will also release a new set of model rules, which as well as containing the new object, will also reflect how credit unions have changed since the last set was created in 2012.

“I would like to give thanks to the many credit unions and key stakeholders across the country who have made a significant contribution to this change.”