CSU responds to second FCA co-op and bencom consultation
CSU responds to the second FCA co-op and bencom consultation
CSU has produced a response to the FCA’s second consultation on its registration function under the Co-operative and Community Benefit Societies Act 2014. This consultation follows on from its initial consultation last year and focusses on three issues – interest rates, definitions of co-operative forms and the FCA’s Names policy. This response was based on the experiences of the CSU and the feedback to the draft response that was shared with stakeholders in July 2015.
The CSU response focuses predominantly on rates of interest payable on shares. Overall, the FCA guidance is more closely aligned with CSU best practice guidance on interest rates, as set out in the Community Shares Handbook. In particular, the CSU has stated that societies should set a maximum rate and then treat it as a post-profit, discretionary operating expense, which is now picked up in the FCA guidance.