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Fri 20 Apr 2018 1:48PM

New Coop Registration - FCA costs?

DU Public Seen by 86

Does anyone know what the cost is from the FCA when setting up a Community Benefit Society?

JA

John Atherton Fri 20 Apr 2018 1:58PM

We do it for as cheap as £250+VAT depending on what your after, Bencoms are a bit more complicated as the FCA has to approve each one.

https://www.uk.coop/advice/help-start-co-op/registration/packages

DU

Fri 20 Apr 2018 2:08PM

Hi John

Thanks, but do you have an approximate figure for a tenants type 'Bencom'?

Cheers

Felix

JA

John Atherton Fri 20 Apr 2018 3:09PM

Oh right if you want to set up a housing co-op, better go to https://www.housing.org.uk/about-us/contact-us/ as they are the specialists in housing

DH

Dave Hollings Fri 20 Apr 2018 3:25PM

It will depend on which model you use and how many amendments you want.

You need to go through a promotional body (Co-ops UK and Plunketts are the most common) who hold a set of model Rules otherwise the FCA will treat your application as a Free Draft and charge you £950.

Both offer a set of Model Rules with up to 6 amendments free. But you will need to get a price from each (for example Plunkett charge less for members)

Thanks

Dave

DH

Dave Hollings Fri 20 Apr 2018 3:34PM

It will depend on which model you use and how many amendments you want.

You need to go through a promotional body (Co-ops UK and Plunketts are the most common) who hold a set of model Rules otherwise the FCA will treat your application as a Free Draft and charge you £950.

Both offer a set of Model Rules with up to 6 amendments free. But you will need to get a price from each (for example Plunkett charge less for members)

Thanks

Dave

MM

Martin Meteyard Fri 20 Apr 2018 6:28PM

I'm not sure why John is recommending the National Federation of Housing Associations for advice rather than the Confederation of Co-operative Housing: http://www.cch.coop/. But I'd also strongly recommend contacting Radical Routes, who specialise in housing co-ops and have a model registered with the FCA. Also CBC associates North West Housing Services are a great source of advice: http://www.nwhousing.org.uk/.

JA

John Atherton Mon 23 Apr 2018 8:18AM

They are a sponsoring body for Community Benefit Societies so can register them, that's why! we can register housing co-ops but don't have a specific bencom model, would amend one of our others ones. I'm sure CCH would also be able to give advice, but not sure they are a sponsored body.

AW

Andrew Woodcock Mon 23 Apr 2018 9:34AM

If you want a tenant run co-op then you
don't want a Bencom, but a housing co-op.

There are 3 sets of model rules for housing co-ops in the UK.

1) RRFM14 - written by Radical Routes - no management committee
and so managed by general meeting - Sponsoring Body Catalyst
Collective - Cost £375

2) CCH's model rules for Housing Co-ops - written by Confederation
of Co-operative Housing - Has management committee - Sponsoring
Body Co-ops UK - Cost £250 (I think)

3) MHOS - written by CDA - has share capital for tenant owners -
sponsoring body CDA - Cost unsure

DU

Mon 23 Apr 2018 9:54AM

Hello Andrew and everyone. Thank you for your help and suggestions. We need to be a Bencom as the holders of the assets insist on that before they hand over. They don't trust a coop model on its own. But, we want something that works for residential tenants, business tenants, and community groups - that is completely asset locked. All the tenants are very cooperative and want to run it in a democratic hands-on way so welcome a management committee level.
That said.... which way to go?

PC

Pat Conaty Tue 24 Apr 2018 9:16AM

Where an asset transfer is involved the MHOS solution is a two company model that provides a good asset lock. To do so the land should be held by a Community Land Trust that could be Bencom or a CLG which gives a lease to a housing co-op. This has the benefit of a defence against leaseholder enfranchisement to privatise the land that the CLT or other gifted asset that keeps the housing affordable. I worked on this solution in 2003 and afterward with CDS Co-ops. Sadly replication has been a challenge as other CLT ways forward without the housing co-op are easier to set up. Lilac in Leeds is the closely model to an MHOS but there is no CLT. The founders acquired the site for the 20 unit development for Cohousing.

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