Question to the HM Treasury:

To ask Her Majesty’s Government, further to Written Answer by Lord Deighton on 15 September (HL1801), whether they are content with the regulatory protection afforded to members and creditors of cooperative societies; and whether they intend to review regulatory oversight of cooperative societies.

The Financial Conduct Authority (FCA) is the registrar for cooperatives and community benefit societies. It has no regulatory functions over societies which are not authorised to carry out financial services activities.

On 6 April 2014, the government implemented a package of measures which introduced insolvency procedures for cooperative societies and gave the FCA additional powers to investigate societies suspected of improper or unlawful behaviour. These measures provide increased protection of members and creditors of cooperative societies.

The government will keep the oversight of cooperatives and community benefit societies under review, but has no plans to undertake further reform of this area at the current time.