The proposed guidance relates to our registration function under the Co-operative and Community Benefit Societies Act 2014 (the Act).
Our registration function under the Act is distinct from our functions as a regulator of financial services. Our statutory objectives under the Financial Services and Markets Act 2000 (FSMA) are disengaged for the purposes of this function.
Background to this consultation
In October 2014 we consulted on draft guidance on our registration function under the Act (CP14/22). We received substantive feedback and we will publish a feedback statement in due course. We also identified three areas on which we would welcome further feedback.
Under the Financial Services Act 2012 (Mutual Societies) Order 2013, we must maintain arrangements designed to enable us to determine whether persons are complying with requirements imposed on them by or under the legislation relating to mutual societies.
Summary of the key issues
In summary, our draft guidance sets out:
- our views on the setting of interest rates
- our concept of a ‘bona fide co-operative society’
- our names policy
Who should read this?
- people who run, advise, or participate in societies (or prospective societies) registered under the Act
- consumers who may be invited to acquire shares in a registered society. These shares, which are often described as ‘withdrawable shares’ or ‘community shares’ are issued as risk capital
Cost benefit analysis
Under Schedule 1 paragraph 8 the Financial Services Act 2012 (Mutual Societies) Order 2013 in connection with section 139A(3) and (5) of the Financial Services and Markets Act 2000, when proposing to give general guidance to registered societies we are not required to accompany the consultation with a cost benefit analysis.
We invite your views on the questions set out in Annex 1 of the guidance consultation via our online form, Alternatively please email your responses to: [email protected] or send your responses in writing to:
Financial Conduct Authority
25 The North Colonnade
London E14 5HS
Telephone: 0207 066 1920
Please respond by 14 August 2015.
- CP14/22: Guidance on the FCA’s registration function under the Co-operative and Community Benefit Societies Act 2014