(1)In their application to credit unions, [F1 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)[F2In relation to a credit union which is not a PRA-authorised person, the FCA] shall not register a special resolution under [F3 section 109 or 110 of the 2014 Act ] if in [F4its] opinion—
(a)the proposed amalgamation or transfer of engagements would result in a contravention of any provision of this Act or [F5 the 2014 Act ] [F6or any requirement imposed by or under the 2000 Act]; or
[F7(b)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.]
[F8(3A) In relation to a credit union which is a PRA -authorised person—
(a) the FCA shall not register a special resolution under [F9 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 [F10does 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.
Textual Amendments
F1Words in s. 21(1) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 11(2) (with Sch. 5)
F2Words in s. 21(3) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 6 para. 14(2) (with Sch. 12)
F3Words in s. 21(3) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 11(3)(a) (with Sch. 5)
F4Word in s. 21(3) substituted (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1), Sch. 3 Pt. IV para. 286 (with art. 13(3)); S.I. 2001/3538, art. 2(1)
F5Words in s. 21(3)(a) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 11(3)(b) (with Sch. 5)
F6Words in s. 21(3)(a) inserted (2.7.2002) by S.I. 2002/1501, arts. 1(1), 2(16)
F7S. 21(3)(b) substituted (8.1.2012) by The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 (S.I. 2011/2687), arts. 1(1)(b), 14(3)(a) (with arts. 25, 26)
F8S. 21(3A) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 6 para. 14(3) (with Sch. 12)
F9Words in s. 21(3A)(a) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 11(4) (with Sch. 5)
F10Words in s. 21(4) substituted (8.1.2012) by The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 (S.I. 2011/2687), arts. 1(1)(b), 14(3)(b) (with arts. 25, 26)