Paragraph 3 Specified financial activitiesI1I2

After section 1 insert—

“Specified financial activities

1ZA

(1)

The financial activities specified for the purposes of the optional object of a credit union (see section 1(3ZZA)) are—

(a)

entering into conditional sale agreements, as the seller;

(b)

entering into hire purchase agreements, as the person from whom goods are bailed or (in Scotland) hired;

(c)

insurance distribution activities.

(2)

The Treasury may by regulations specify requirements or restrictions in relation to the carrying on by a credit union of a financial activity specified in subsection (1).

Power to specify further financial activities

1ZB

(1)

The Treasury may by regulations—

(a)

amend section 1ZA so as to specify further financial activities for the purposes of the optional object of a credit union;

(b)

make such amendments of this Act, or any other enactment, as appear to them to be appropriate in consequence of any provision made under paragraph (a).

(2)

Amendments made by regulations under subsection (1) may, in particular, provide that a credit union may carry on a financial activity specified in the regulations if the credit union has the optional object specified in section 1(3ZZA).

(3)

Regulations under section 1ZA(2) made in relation to a financial activity specified in regulations under subsection (1) may, in particular, make provision about fees or other charges payable in respect of the activity or activities that are ancillary to the activity.

(4)

Before making regulations under this section, the Treasury must consult such persons as appear to them to be appropriate.

(5)

A statutory instrument containing (whether alone or with other provision) regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”