HISTORIC PRESS RELEASE : New regulatory regime for Credit Unions [July 2002]

The press release issued by HM Treasury on 2 July 2002.

Credit Union members will be given similar protection to bank customers under new regulatory measures that come into effect today.  The new arrangements will be overseen by the Financial Services Authority (FSA).

Ruth Kelly, Financial Secretary to the Treasury, said:

“Today’s announcement is a milestone for the credit union movement. For the first time credit union members will receive a similar level of protection to that afforded to bank and building society customers.

The Government believes that credit unions have an important role in tackling financial exclusion, encouraging saving and providing affordable credit. FSA regulation will allow credit unions to offer a wider range of services and compete more effectively for deposits.

The Government received strong support from across the credit union movement for regulation by the FSA. There has been a wide-ranging consultation to ensure that the new regime is proportionate.”