LONDON, England (11/10/11)--A deregulatory package created to help British credit unions and cooperatives more effectively compete and grow has been approved by the British Parliament.
The Legislative Reform Order (LRO) will go into effect Jan. 8. The far-reaching changes will help credit unions and cooperatives in several ways (M2 Presswire
Nov. 9), including:
- Allowing credit unions to accept new types of members, such as partnerships and limited companies;
- Allowing credit unions to offer interest on deposits;
- Amending common-bond and membership requirements to allow expansion, consolidation and mergers; and
- Giving credit unions and cooperatives the flexibility to choose their own year ends and removing the requirement to have interim accounts audited.
"Credit unions in Britain are delighted that legislation reforms have been agreed by Parliament and which free up the sector to compete on a more level playing field," said Mark Lyonette, chief executive of the Association of British Credit Unions (ABCUL). "ABCUL has campaigned long and hard for these changes, so we're happy that credit unions will be able to use the new powers from the New Year."
Lyonette also has called for credit union services to be made available to consumers through Britain's post office network, following an announcement that people no longer will be able to use post office branches to manage the National Savings and Investments savings products (ENP Newswire