The new Co-operative and Community Benefit Societies Act 2014 ('the 2014 Act') came into force on 1 August 2014.
The 2014 Act affects some existing societies, and changes how new societies are registered by:-
- Replacing the 'industrial and provident society' legal form with two new legal forms:-
- Co-operative society
- Community benefit society
- Repealing and replacing previous industrial and provident society legislation including:
- Industrial and Provident Societies Act 1965 (including the 1967, 1975, 1978 and 2002 Acts)
- Friendly and Industrial and Provident Societies Act 1968
- Co-operative and Community Benefit Societies Act 2003 (including the 2010 Act).
Prior to the Act coming into force, all societies registered under the Industrial and Provident Societies Act 1965 were legally referred to as 'industrial and provident societies'. All such societies will now be referred to as 'registered societies'.
Any new societies registered after 1 August will be referred to as a 'co-operative society' or a 'community benefit society'.
FCA has provided additional guidance for any queries that may arise due to the 2014 Act which can be located at FCA guidance.
They have suggested that you should use the following wording for updating your letterhead and website:-
[name of society] is a registered society under the Co-operative and Community Benefit Societies Act 2014.
There is no requirement to change your rules because of the Act
However the Financial Conduct Authority (FCA) have advised that the next time you are making a rule amendment you should consider changing references to 'Industrial and Provident Societies Act 1965' and 'Friendly and Industrial and Provident Societies Act 1968' to 'Co-operative and Community Benefit Societies Act 2014'.
Many RSLs are currently adopting the 2013 Model Rules
Many registered social landlords have already obtained regulatory consent to their proposed rules and will be holding their Special General Meetings over the next few weeks. FCA advised that they are happy to accept rules at this stage with reference to previous legislation.
Model Rules
New model rules are currently being prepared incorporating reference to the 2014 Act and will be available from the Scottish Federation of Housing Association's website in due course.
If you feel this may be something that you wish to discuss further please feel free to contact our governance team for any additional information.
