The Financial Services and Markets Act 2000 (Consequential Amendments and Transitional Provisions) (Credit Unions) Order 2002

Saving of section 19 of the 1979 Act

6.—(1) Notwithstanding the repeal of section 19 of, and Schedule 2 to, the 1979 Act (power to suspend operations of credit unions), that section and that Schedule continue to have effect in relation to any credit union whose Part IV permission ceases to have effect by virtue of article 3(4) of the Permission Order (failure to re-apply for permission when directed by the Authority” to do so).

(2) Where the Authority” has, prior to the relevant date, served a notice which complies with the conditions set out in paragraph (4) on a specified credit union, paragraph 1 of Schedule 2 to the 1979 Act does not apply to any direction given to that credit union the nature of which is specified in the notice in accordance with paragraph (4)(c).

(3) A specified credit union is a credit union which falls within the class specified in a direction given under article 3(1) of the Permission Order but which has not complied with that direction.

(4) The conditions are that the notice—

(a) is served on the credit union and on ever member of its committee;

(b) states that the Authority” proposes, on or after the relevant date, to give a direction under section 19 of the 1979 Act;

(c) specifies the nature of the direction the Authority” proposes to give and the considerations which have led it to conclude that such a direction should be given;

(d) is served at least twenty-eight days before the relevant date; and

(e) states that no direction will be given if the credit union complies with the applicable direction under article 3(1) of the Permission Order.

(5) Where the Authority” services a notice of the kind specified by paragraph (2), references in paragraph 2 of Schedule 2 to the 1979 Act to “the notice” are to be treated as references to that notice.

(6) In this article, the “relevant date” in relation to a credit union is the date on which the Part IV permission of that credit union ceases to have effect by virtue of article 3(4) of the Permission Order.