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Credit union regulation and the financial services authority: less is more, but better!

Credit union regulation and the financial services authority: less is more, but better! Purpose – The UK's financial watchdog, The financial services authority (FSA) took over prudential regulation and control of credit unions on 2nd July 2002. The purpose of this paper is to assess the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. It also aims to assess what the future may hold for the direction of the UK credit union sector. Design/methodology/approach – An assessment is made of the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. Also, an assessment is made of what the future may hold for the direction of the UK credit union sector. Findings – The paper finds that credit union membership is growing, as are members’ deposits and loans, however at the same time the numbers of individual credit unions are falling. Overall, with supervision and regulation passing to the FSA, the outlook for credit unions in the UK is better than at any time in their history. The result of the new regime will ultimately lead to a strong, secure and professional credit union sector, capable of meeting the credit needs of a wide range of persons. Originality/value – The paper provides a useful overview of the history and present status of UK credit unions, and the effects of recent legislation and regulation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Law and Management Emerald Publishing

Credit union regulation and the financial services authority: less is more, but better!

International Journal of Law and Management , Volume 50 (6): 15 – Nov 14, 2008

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References (61)

Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1754-243X
DOI
10.1108/17542430810919259
Publisher site
See Article on Publisher Site

Abstract

Purpose – The UK's financial watchdog, The financial services authority (FSA) took over prudential regulation and control of credit unions on 2nd July 2002. The purpose of this paper is to assess the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. It also aims to assess what the future may hold for the direction of the UK credit union sector. Design/methodology/approach – An assessment is made of the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. Also, an assessment is made of what the future may hold for the direction of the UK credit union sector. Findings – The paper finds that credit union membership is growing, as are members’ deposits and loans, however at the same time the numbers of individual credit unions are falling. Overall, with supervision and regulation passing to the FSA, the outlook for credit unions in the UK is better than at any time in their history. The result of the new regime will ultimately lead to a strong, secure and professional credit union sector, capable of meeting the credit needs of a wide range of persons. Originality/value – The paper provides a useful overview of the history and present status of UK credit unions, and the effects of recent legislation and regulation.

Journal

International Journal of Law and ManagementEmerald Publishing

Published: Nov 14, 2008

Keywords: Credit unions; United Kingdom; Regulation

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