Legislation that is designed to help credit unions and co-operatives compete and grow more effectively has completed its Parliamentary passage,the Treasury has announced today.
The Legislative Reform Order (LRO) will come into force on 8 January 2012 and is intended to promote mutuals.
The legislation will enable credit unions to accept new types of members, such as partnerships and limited companies,and allow interest to be offered on deposits.
Announcing the passage,Financial Secretary to the Treasury, Mark Hoban said:
“I want to see credit unions grow to meet the needs of their members and communities they serve.
Mark Lyonette, Chief Executive of the Association of British Credit Unions (ABCUL) said:
"Credit unions in Britain are delighted that legislation reforms have been agreed by Parliament which free up the sector to compete on a more level playing field. 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."