Amalgamations, transfers of engagements and conversions
21 Amalgamations and transfers of engagements.
1
In their application to credit unions, F7 sections 109 to 111 of the 2014 Act (amalgamations of registered societies and transfers of engagements between them) shall have effect subject to the provisions of subsections (2) and (3) of this section.
2
A credit union shall not amalgamate with or transfer its engagements to or accept a transfer of engagements from any registered society which is not a credit union.
3
F5In relation to a credit union which is not a PRA-authorised person, the FCA shall not register a special resolution under F8 section 109 or 110 of the 2014 Act if in F1its opinion—
a
F3b
section 1B (further requirements where common bond relates to locality) would apply to the proposed amalgamated credit union or, as the case may be, the credit union proposing to accept the transfer of engagements and the requirements of that section would not be met.
F63A
In relation to a credit union which is a PRA -authorised person—
a
the FCA shall not register a special resolution under F10 section 109 or 110 of the 2014 Act if the PRA informs the FCA that it is of the opinion that that paragraph (a) or (b) of subsection (3) applies, and
b
the PRA must consult the FCA before determining its opinion.
4
In this Act the expression “non-qualifying member”, in relation to an amalgamated credit union or a credit union which has accepted a transfer of engagements, includes a person who F4does not fall within a common bond and as a result does not qualify for admission to membership of that credit union but became a member of it by virtue of the amalgamation or transfer of engagements, having been immediately before the amalgamation or transfer a non-qualifying member of one of the amalgamating credit unions or, as the case may be, the credit union from which the transfer of engagements was made.