Find out more about credit union mergers, including who to contact and what to consider if you are transferring or receiving engagements from another credit union.
Credit unions ‘merge’ by one credit union transferring its engagements to another. This is a legislative process. A credit union can only transfer its engagements to another credit union.
There will be many practical considerations. This information focuses on your interaction with us, and the Prudential Regulation Authority (PRA).
Who to contact
If you are considering a transfer
When you’re at the stage of considering a transfer, notify the PRA at: [email protected].
Applying for a rule amendment or transfer of engagements
When submitting a rule amendment or transfer of engagements application to the FCA, send this to: [email protected].
Cancelling your Part 4A permissions
When submitting an application to cancel your Part 4A permissions to the FCA, send to: [email protected].
What you need to consider
Considerations if you are the credit union receiving the engagements (the transferee)
- Check your common bond is broad enough to accept the members of the transferring credit union. If not, follow the process to amend your rules and register that rule change with us.
- Ensure your board has taken a decision undertaking to accept the transfer of engagements (unless your rules specify that this decision must be taken by members)
Considerations if you are the credit union transferring its engagements (the transferor)
- You need to pass a ‘special resolution’. This involves holding 2 meetings of your members.
- You will need to submit a copy of the special resolution to us within 14 days from the day the resolution is confirmed at the second meeting. The special resolution must be signed by the chair of the second meeting and countersigned by the secretary of the credit union.
- When submitting the transfer of engagements application, the signed special resolution should be submitted to us along with the transfer of engagement application form (DOCX).
- Credit unions are authorised under the Financial Services and Markets Act 2000 (FSMA). If you want to cancel your Part 4A FSMA permissions your application to cancel should be submitted at the same time as the transfer of engagements application.
- You can find more information on our website about cancelling your authorisation as well as on the PRA website.
- After a transfer has been made, the transferring credit union still exists. However, if it has transferred both its engagements and all its property, it usually applies to cancel its registration.
- Following a transfer of engagements for credit unions in Great Britain, the transferring credit union can only be deregistered after it has filed a certificate (DOCX) under section 126 of The Co-operative and Community Benefit Societies Act 2014 with us.
- For credit unions in Northern Ireland, the credit union can only be deregistered after it has filed a certificate (DOCX) under Article 71 of The Credit Unions (Northern Ireland) Order 1985 with us. This confirms that all the society’s property has been transferred to those entitled to it.
