§ Mr. PurchaseTo ask the Chancellor of the Exchequer what action is being taken to establish a voluntary share protection scheme for credit unions; what consultation or discussion with credit unions and their promoting bodies has taken place on the need to provide this additional protection for members; and if he will make a statement. [26915]
§ Mr. NelsonSection 16 of the Credit Unions Act 1979 gives unions the power to set up or join a share protection scheme, to protect members in the event of the collapse of their union. Any such scheme must be approved by the Chief Registrar of Friendly Societies, but he has no statutory power to require that one be set up.
266WWith the growth of the movement in recent years, there should now be sufficient resources within the sector to support a scheme. The Registry of Friendly Societies has strongly encouraged the establishment of one covering all credit unions. The registry is currently in discussions with credit unions' promoting bodies and is offering them its help and advice.