The long awaited new Credit Union legislation (Financial Services & Markets Bill) has begun its journey through parliament.
The bill which will impact a wide range of financial services organisations had its first reading on 20 July 2022. The bill still needs to complete a number of hurdles before it becomes legislation (progress can be viewed here). The 2nd reading is scheduled for 7 September 2022. We are expecting to see proposals for accompanying changes to PRA rulebook soon as well.
The Bill has a number of key implications for Credit Unions. If it becomes legislation it will allow Credit Unions to:
- Provide hire purchase
- Enter into conditional sale agreements
- Insurance distribution activities
The proposals also impose restrictions for credit unions borrowing from other credit unions when the borrower is not a member.
The Bill can be found here