June 2014- Legislative Update

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A round-up of some of the latest legislative changes affecting Credit Unions:

The Co-operative and Community Benefit Societies Act 2014 is due to become law on 1 August 2014. Once the act has come into force the existing Industrial and Provident Societies Acts will be repealed and replaced by this new consolidation act. The new act can not bring about substantive policy changes and instead is aimed at making the existing Industrial and Provident legislation more accessible and brings it all together in the one location. The full act can be accessed by clicking here. Once in place references in your accounts to Industrial and Provident Societies Acts will be replaced by The Co-operative and Community Benefit Societies Act 2014. The act also updates the Credit Union Act 1979 but most of the changes are updating the Credit Union Act’s references to Industrial and Provident Society legislation to the new Co-operative and Community Benefit Societies Act 2014.

The EU 4th Money Laundering Directive is likely to be agreed this Summer and will need to be brought into UK law by Summer 2016. The new Directive which focuses on a risk based approach will lead to changes in money laundering policies and further training requirements.

Lastly, just a reminder again that auto-enrolment is coming shortly for most Credit Unions. Please see our previous blogs for more details.