Draft reponse now available for second FCA co-op and bencom consultation
The Community Shares Unit (CSU) has produced a draft 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 focuses on three issues – interest rates, definitions of co-operative forms and its Names policy.
The CSU is most interested in the first section on rates of interest payable on shares. Overall, the 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.
We would like to hear your views on this, so please contact us with your comments by 7th August 2015.