83/99
21 May 1999
CONSULTATION ON BANKING ACT PROVISIONS
The Treasury today published a consultation document seeking the views of interested parties on aspects of proposals to amend exemptions under the Banking Act which allow cooperatives and other societies registered under the Industrial and Provident (I&P) Societies Act to take deposits from their members.
The Government proposes to maintain the exemption under which cooperatives and other I&Ps can take deposits from their members in the form of withdrawable share capital (WSC), but intends to require I&Ps which rely on the exemption to comply with a code of practice.
Following consultation with representatives of the Cooperative Union, the Treasury has also announced that the exemption which allows members of the Cooperative Deposit Protection Scheme (CDPS) to take deposits in the form of loans from the public will lapse when the current term of the CDPS comes to an end at the end of March 2000.
NOTES TO EDITORS
1. The announcement was made in response to a Parliamentary Question from Jackie Lawrence MP (Preseli).
2. The current exemptions are set out in the Banking Act 1987 (Exempt Transactions) Regulations 1997. SI 1997 No 817.
3. The announcement does not affect the Cooperative Bank, which is authorised under the Banking Act and a member of the banks' Deposit Protection Scheme.