The Channel Islands Co-operative Society Limited

1. About These Terms and Conditions

 

1.1 Please take the time to read these terms and conditions, which contain important information about your Membership of the Coop.

1.2 The Channel Islands Co-operative Society Limited (the “Coop”, “us”, or “we”), its subsidiaries and all affiliated entities, are committed to respecting and protecting your privacy. These terms and conditions (the “Terms and Conditions”) must be read in conjunction with the:

1. Society’s Rules; and
2. Privacy Notice relating to Membership (the “Membership Privacy Notice”)

1.3 The Coop’s Rules, these Terms and Conditions and the Coop’s Membership Privacy Notice may change from time-to-time. We will endeavour, in so far as is practicable, to provide you with reasonable prior notice in writing of any material amendments to these Terms and Conditions. Any amendment will take effect and be binding when the revised terms become available for inspection at such office or by their publication on our website (www.channelislands.coop).

1.4 These Terms and Conditions, the Coop’s Rules and the Membership Privacy Notice together set out the rights you have as a Member of the Coop and the way in which your Membership will operate. By opening a share account with the Coop you agree to be bound by these Terms and Conditions and the Coop’s Rules.

1.5 You may obtain a copy of the Coop’s Rules, these Terms and Conditions and the Coop’s Membership Privacy Notice from the Coop’s website, its head office at Co-operative House, 57 Don Street, St Helier, Jersey JE2 4TR, customer relations at customer.relations@channelislands.coop or our Member Service Counters.

 

2. About the Coop

 

2.1 The Coop is registered under –Co-operative and Community Benefit Societies Act 2014 and has its registered office at Co-operative House, 57 Don Street, St Helier, Jersey, JE2 4TR. The Coop is registered with the Mutuals Section of the Financial Conduct Authority in the United Kingdom (Number 14672R) which acts as registrar for mutual societies such as co-operative societies.

2.2 The Coop is supervised by the Jersey Financial Services Commission as a financial services business for anti-money laundering, countering financing of terrorism and countering proliferation financing.

 

3. Becoming a Member

 

3.1 You can apply to become a Member by completing our online Application Form.

3.2 In order to become a Member of the Coop you must be over 16 years of age and have either a:

1. permanent residential address in the Channel Islands
2. proven trading connection with the Coop, or
3. genuine charitable or social purpose, in the case of a company

3.3 You cannot become a Member until your application has been accepted by the Coop’s Board of Directors, and the Board of Directors has absolute discretion to accept or refuse any application for Membership.

3.4 You will need to pay £1 when opening your Class A Share Account, in return for one Class A share in the Coop. You can acquire additional A Class and B Class share capital after one calendar month. In accordance with the Coop’s Rules Class B Shares carry no voting rights.

3.5 We will keep all your personal details safe and only use them as outlined in our Membership Privacy Notice.

3.6 You need to have held a Class A Share in the Coop for a minimum of six months before you will be eligible to vote on Coop matters at Annual Meetings of Members or Special Meetings of Members.

3.7 Only eligible Members may vote at Annual Meetings of Members or Special Meetings of Members. With respect to joint account holders, the second named person on any such share account is not entitled to vote at these meetings.

 

4. Member identification, Anti-Money Laundering and Financing of Terrorism procedures including prevention of bribery and corruption measures

 

4.1 Under legislation designed to combat money laundering and the financing of terrorism, the Coop must comply with certain statutory duties, including (but not limited to) the obligation to verify the identity and place of residence for each of our Members (including joint account holders).

Further, for Members who have acquired additional share capital in either A class share capital or B share class capital, the Coop has an obligation to verify the source of funds (and in certain circumstances source of wealth) received from Members.

The Coop has implemented anti-money laundering identification procedures in line with our statutory obligations in respect of our Members, and our Members are obliged to meet these requirements.

4.2 Any failure to provide such information as we request pursuant to our anti-money laundering or financing of terrorism procedures is likely to either delay the opening of a Members’ account or the purchase of additional share capital. The Coop accepts no responsibility or liability arising directly or indirectly as a result of our need to do this.

4.3 When you first apply to become a member and pay your £1 to acquire £1 A Class share capital, we will ask you for some personal details, including:

1. your full name
2. date of birth
3. residential address
4. email address
5. contact number
6. former names, aliases
7. how you would like us to stay in touch with you

4.4 To comply with the Coop’s obligations, we will take your photograph and will ask you for proof of identity, and proof of address. Should you wish to not have you photograph taken, you will need to provide us with proof of identity which includes a photo, such as Passport, Driving License.

The following items will be accepted for these purposes:

Proof of Identity

1. current valid passport
2. current valid driving licence (if it contains your photograph)
3. current national identity card
4. birth certificate (if supported by other evidence of identity such as bank statement, utility bill, government issued document or letter from a JFSC/GFSC regulated entity)
5. a current identity card issued by the armed forces

Proof of Address

1. a recent original utility bill
2. a recent original letter from one of the Departments of the States of Guernsey or Jersey
3. current valid driving licence (Guernsey only) (if it contains your photograph)
4. a recent original letter or statement from your bank (not credit card or store card statement)

4.5 Members who acquire additional A or B class share capital will be asked for additional information to that stated above. This information includes, but is not limited to:

1. Place of birth
2. Nationality
3. Gender
4. Occupation (including employer) or Profession
5. Government issued personal identification number or other government issued unique identifier (e.g. passport number / driving licence card number)

4.6  In all circumstances the COOP will need to understand and the Member will need advise whether it is their intention to acquire additional share capital.

4.7 Members will be required to provide information, including supporting documentation, as to the source of funds for the additional share capital acquired as well as application of funds on withdrawals. This will include both the source of those funds and the transaction or event that gave rise to those funds being held by the Member, or what the funds will be used for where withdrawn.

4.8 In certain circumstances a Member who acquires additional share capital may be required to provide information about their source of wealth or status as a politically exposed person. In such circumstances the Coop will contact the Member directly to request this information.

4.9 Documents that provide proof of address will be considered ‘recent’ if dated within the last three months.

4.10 We may ask you to provide updated identity or proof of address documentation from time to time.

4.11 As required by law and for the protection of the Coop and our Members, we operate money laundering reporting and counter-financing of terrorism procedures.

All communications between us are confidential however, in certain circumstances, information and documentation must be revealed by us to the appropriate authorities in relation to any suspicion of money laundering or the financing of terrorism. We are prohibited from notifying you of the fact that a report has been made. We accept no responsibility or liability arising directly or indirectly from the requirements of money laundering or counter-financing terrorism legislation or from our compliance with the requirements of any authority in respect of that legislation.

4.12 As required by law and for the protection of the Coop and our Members, we have measures in place to prevent the occurrence of bribery and corruption.

Where we are aware of or suspect the occurrence of any bribery or corruption in connection with a Member we may (i) refuse to transact for you in relation your Share account or (ii) close your Share Account with you at the Coop’s sole and absolute discretion. We accept no responsibility or liability arising directly or indirectly as a result of our need to do this.

5. Share Accounts

 

5.1 Upon becoming a Member of the Coop, you will become a shareholder of the Coop. Whilst interest is paid on Class A and Class B share Accounts the Coop is not a Bank and is not regulated under the Banking Business (Jersey) Law 1991 or the Banking Supervision (Bailiwick of Guernsey) Law, 1994 respectively. Therefore, it is not part of the Jersey Bank Depositors Compensation Scheme or Guernsey Banking Deposit Compensation Scheme.

5.2 Once you are registered as a Member, you will be provided with a welcome pack which will include your share number. You will also be able to subscribe for additional withdrawable share capital after one (1) month of Share account opening.

5.3 You can pay the value of your completed stamp cards into your Class A Share Account at any of our Post Office Counters up until 31 December 2022, by which point they will no longer be accepted.

5.4 There is a cash transaction limit of £500 per calendar month across all share account types in aggregate. 

5.5 You can hold up to £25,000 in your Class A Share Account and up to £75,000 in your Class B Share Account with the Coop and will receive interest which will be paid at the prevailing rates. View Interest Rates.

5.6 Interest is not accrued during the 90 days’ notice period for withdrawals on B Class Share accounts.

5.7 You must hold a Class A Share Account in order to open a Class B Share Account. The minimum balance for a Class B Share Account is £1,000.

5.8 The maximum balance which can be held within the Coop at any time is £100,000 either individually or where the Share account/(s) is / are held jointly. Any excess balances will be sent to you by cheque.

 

6. Dividend

 

6.1 Dividend paid by the Coop in respect of each trading year is approved by the Members at the Annual Meetings of Members, which is normally held in quarter two each year. Customarily the rate of dividend payable will be expressed as a percentage of the amount you have spent on qualifying purchases in the relevant trading year, provided that you quoted your share number when you made your purchases.

A qualifying purchase is the purchase of any goods or services from the Coop, other than those items listed in Clause 6.2 below.

6.2 Certain purchases are categorised by the Coop as “not qualifying”. Members will not collect dividend on purchases categorised as “not qualifying”. For a full list of non-qualifying purchases please see Benefits of being a member.

The Coop reserves the right to amend the list of “not qualifying” purchases at any time and without prior notice. 

6.3 If you buy goods or services from us and then return them for a refund (or cancel or change them in some way) this will reduce you qualifying purchases for the year and will  reduce  the dividend you earned (if any).

6.4 Your dividend value is automatically calculated during the trading year, which ends on the second Sunday in January. 

6.5 Once dividend has been applied to your share account you can either:

1. withdraw it as cash subject to the cash limits per clause 5.4 above
2. have it paid to you in the form of Coop vouchers
3. leave it in your account to accrue interest, subject to the Share account limits being reached, where any excess is automatically sent to you by way of cheque.

6.6 You can check your estimated dividend for the current year and the dividend paid to you from the previous period via our Member’s Portal. It is also printed on your Coop store receipt.

7. How to Manage your Account and Change your Details

 

7.1.   As a Member, it is your responsibility to inform us if your personal details change; for example, if you move house. You can do this by visiting any of our Member Service Counters.

8. If you Cancel your Membership

 

8.1  You can cancel your Membership by serving at least one month’s notice to the Society Secretary and closing your Class A Share Account at the details set out in 13.8 below.

In the case of Class B Share Accounts, 90 days’ notice must be given prior to closure. This is in accordance with the Coop’s Rules. In practice you can do this by visiting one of our Member Service Counters, and if your balance is small we will normally pay the closing balance on your Class A Share Account immediately in cash, subject to the cash limits as set out under clause 5.4 above.

Where you have a larger balance or you request the closing balance in the form of a cheque, please allow up to 10 working days for this to be processed.

You may also request repayment by way of bank transfer to an account in your name with a financial institution in the Channel Islands. Once such a request has been received, please allow up to 10 working days for this to be processed.  If you close your account before the dividend is declared, you will forfeit any dividend accrued so far during that year.

9. If the Coop cancels your membership

 

9.1 Whilst we greatly value our Members, the Coop’s Rules set out certain circumstances in which your Membership may be cancelled.

If this should happen you will receive a refund of the £1 you paid for your Class A Share (provided you maintained at least that sum in your Class A Share Account), the balance on your Class A Share Account and the balance on your Class B Share Account (if applicable) and any dividend, loyalty bonus and interest accrued so far during that year (even if it is before dividend has been declared).

Such refunds will only be made by way of cheque or direct bank transfer into a bank account in the name of the Member, where that financial institution is in the Channel Islands.

 

10 Loss of Contact – Dormant Accounts

 

10.1 Where a Member’s Class A Share Account or Class B Share Account has had no dividend accrued for a period of 12 months it is deemed to be dormant. If an account has been dormant for three (3) calendar years at a review date of the Coop’s choosing and the balance on that account is less than £1,000:

(a) the Coop shall endeavour to contact the Member by issuing notice to the Member at their last known postal or email address:

(i) stating that their account has been classified as dormant; and

(ii) stating that their account will be deactivated unless the Member contacts the Coop within three (3) months of the notice and provides the Coop with such information as it may require for regulatory and compliance purposes sufficient to enable the Coop to re-validate and re-activate their account.

(b) during the three (3) month notice period, two (2) further notices will be issued to the Member at one (1) and two (2) months after the date of the original notice, in the absence of a response.

(c) if the Member’s account has not been re-validated three (3) months after the date of the Coop’s original notice in accordance with Rule 12.6(a):

(i) the balance on the account at that date shall be transferred to a Dormant Accounts Fund; and

(ii) the individual’s name shall be removed from the Register of Members and that individual shall cease to be a Member of the Coop.

10.2 Where a Member’s Class A Share Account or Class B Share Account has been dormant for ten (10) or more years at the review date, and the balance on that account is greater than £1,000:

(a) the Coop shall issue notice to the Member at their last known postal and email address:

(i) stating that their account has been classified as dormant; and

(ii) stating that their account will be deactivated unless the Member contacts the Coop within three (3) months of the notice and provides the Coop with such information as it may require for regulatory and compliance purposes sufficient to enable the Coop to re-validate their account.

(b) during the three (3) month notice period, two (2) further notices will be issued to the Member at one (1) and two (2) months after the date of the original notice, in the absence of a response.

(c) if the Member’s account has not been re-validated three (3) months after the date of the Coop’s original notice in accordance with Rule 12.7(a) the:

(i) balance on the account at that date shall be transferred to a Dormant Accounts Fund; and

(ii) individual’s name shall be removed from the Register of Members and that individual shall cease to be a Member of the Coop. In the case of joint accounts, both names will be removed from the member registry.

Full details of how the Coop deals with Dormant Accounts can be found in sections 12.5-12.9 of the Member Rules.

10.3 Where a Member’s Class A Share Account or Class B Share Account has been dormant for more than (3) years but less than ten (10) years and the balance on the account is greater than £1,000 at the review date:

(a) the Coop shall issue notice to the Member at their last known postal and email address:

(i) stating that his or her account has been classified as dormant;

(ii) stating his or her account will be deactivated until the Member provides the Coop with such information as it may require for regulatory and compliance purposes sufficient to enable the Coop to re-validate his or her account;

(b) For the avoidance of doubt the balances on such accounts as are referred to in Rule 12.8(a) shall not be transferred to the Dormant Accounts Fund until after they have been dormant for ten (10) years when Rule 12.7(a) shall apply.

10.4 The Coop shall use any balances held in the Dormant Accounts Fund to support community, local charitable causes, environmental or social initiatives that are consistent with the Coop’s values and the International Co-operative Alliances Principle’s & Values. Such funds shall not be employed in the operation of the business.

 

11. Death of a Member

 

11.1 The procedures governing the closure of a deceased Member’s share account are different in Guernsey and Jersey.

11.2 For further details please call us on 01534 879822 or email customer.relations@channelislands.coop and a member of our team will guide you through the process.

 

12. Data Privacy

 

12.1 We take great care to protect your personal information. The information you provide will be used to process your application to become a Member of the Coop and, if your application is successful, to send you information relevant to your Membership such as notice of meetings, voting information for annual elections, share of profit payments and for general membership administration.

12.2 We will keep your personal information secure and only use it in accordance with our Membership Privacy Notice. You will also be invited to consent to the Coop using your personal data to notify you about our products, services and promotional offers, and for other marketing purposes. You do not have to consent to your personal data being used in these ways in order to become a Member.

 

13. Code of Practice

 

13.1 The Coop follows a Code of Best Practice which obliges it to provide written confirmation to its members of the nature of the Coop’s Withdrawable Share Capital (“WSC”) (as set out below and in the Appendix) and any change affecting it.

13.2 As a Member of the Coop you are the owner of one or more shares in the Coop. If the Coop is unable to meet its debts and other liabilities, you risk losing the amount you hold in shares in the Coop. Hence the Coop’s shares are known as risk capital. This may make it inappropriate for you as a place to keep your savings.

13.3 Owning WSC is primarily for the purpose of supporting the Coop in furthering its purpose and objects. There are various important differences between WSC and company shares and these are set out in the Appendix. For example, WSC held in your Share Account may receive interest but will not increase in value.

13.4 The Depositors Compensation Scheme in Jersey and Guernsey which covers bank, building society and credit union accounts, do not apply to your Share Account with the Coop, so you cannot claim compensation under the Scheme in the event of the Coop not being able to meet requests for withdrawal of shares. This is because the Coop does not require authorisation under the Banking Business (Jersey) Law 1991 or the Banking Supervision (Bailiwick of Guernsey) Law, 1994, respectively, to operate WSC.

13.5 Although not subject to formal prudential supervision, a condition of the Coop’s exemption under the Banking Business (Jersey) Law 1991 and the Banking Business (General Provisions) (Jersey) Order 2002 is that the Coop’s Auditor must report annually to the Jersey Financial Services Commission that deposits with the Coop do not exceed 100% of its most recently published capital and reserves. Further that deposits are accepted only from Members.

13.6 Subject to the Coop’s Rules, you may withdraw money from your Share Account at any time.

13.7 The Financial Ombudsman Service does not apply to your Share Account or your relationship with the Coop but under the Coop’s rules any dispute may be the subject of arbitration by the Chief Executive Officer of Co-operatives UK.

13.8 If you have any questions regarding the Code please address them to: The Society Secretary, The Channel Islands Co-operative Society Limited, Co-operative House, 57 Don Street, St. Helier, Jersey JE2 4TR.

 

Appendix

EXPLANATION OF WITHDRAWABLE SHARE CAPITAL IN A CONSUMER RETAIL CO-OPERATIVE SOCIETY

Withdrawable share capital (WSC) in a consumer retail co-operative society is fundamentally different from shares in a company. The following are the key differences, which are explained below:

▪ WSC is turned into cash by withdrawing the funds, not selling the shares

▪ WSC does not increase in value

▪ WSC does not give the Member a share in the underlying value of the Coop

▪ Co-operative shares do not form the basis for the distribution of surplus

▪ Co-operative shares do not carry votes in proportion to the shares

WITHDRAWAL NOT SALE

There needs to be a mechanism for a Member to realise (turn into cash) the value of their shares in the Coop. In companies, this is done by selling the shares to somebody else. In co-operative retail societies this is different, because the shares are not transferable. Instead, shares are withdrawable, and a Member can realise the value of their shares by withdrawing the money held in shares from the Coop, subject to any restrictions contained in the Coop’s Rules.

NO INCREASE IN VALUE

Co-operative shares remain at the same (par) value. In other words, a Member is entitled to their money back, but no more. This is different from a company, where the value of shares can increase or decrease. The reason for this difference is explained in the next point below (Underlying Value).

UNDERLYING VALUE

WSC does not give the Member a share in the underlying value of the Coop, which is why WSC remains at the same value. By contrast, shares in a company do give shareholders a share in the underlying value of the company, which means that if the company was wound up whilst solvent, shareholders would receive a proportionate share of that underlying value (which might be more or less than what was paid for the shares). The Coop Rules provide that on a solvent winding up, Members are entitled to repayment of their WSC, but any remaining surplus after that is transferred to any charities agreed by the Board or Co-operatives UK.

DISTRIBUTION OF SURPLUS

The primary mechanism for a co-operative to distribute surplus or profits is via a dividend to Members in proportion to their trade with the Coop. Although the Coop can pay interest on share capital as compensation to the Members for the use of their funds, such interest is not a mechanism to share profits. By contrast, in a company the payment of a dividend to shareholders is the primary mechanism for a company to distribute surplus or profits.

DEMOCRATIC CONTROL

Co-operative societies operate on the basis of one member, one vote, not like companies where there is one vote per share. This means that greater power and influence cannot be achieved in a co-operative by owning more shares.