The Financial Conduct Authority’s consultation on ‘Guidance on the FCA’s registration function under the Co-operative and Community Benefit Societies Act 2014’ has significant potential impact on those Community Energy groups looking at setting up a Co-operative or Community Benefit Society.
The main areas they are consulting on are:
Interest Rates – They consider setting interest rate levels on shares and consider adopting additional guidance. This additional guidance forms a series of indicators that help determine whether a society is likely to be complying, or failing to comply, with the conditions for registration.
Definition of a Co-operative – A proposed clarification in their approach to applying the ‘bona fide co-operative society’ statutory test. They explain the statutory test, consider the extent to which the International Co-operative Alliance Statement of Identity, Values and Principles (“the ICA Statement”) helps us determine whether the statutory test is met, and propose additional guidance.
Names – More closely aligning their approach to approach to Society Names with company law.
Community Energy Wales will be responding to this consultation so we welcome your feedback on how this could affect community energy organisations you are involved with. Please e-mail Robert@communityenergywales.org.uk with any feedback. This is also an opportunity for you to directly feed back to the FCA on how this could impact on your organisation. The deadline for responses is the 14th of August.
You can feed into the consultation and find our more information here.
We will be supporting the Coops UK response a template can be found here if you want to adapt it yourselves. Coops UK Consultation response template
This page is also available in: Welsh