The PRA’s Credit Union webpages have been focusing upon how Credit Unions advertise themselves. The PRA’s main concerns were with Credit Unions marketing themselves as offering similar services to Banks and being under a similar regulatory regime. The PRA view this as the Credit Union misrepresenting their position and their services. They also have concerns over some Credit Unions advertising rates of interest on ISA accounts when the Credit Union does not have authorisation to issue interest bearing shares.
The deadline for the changes in status disclosure is also fast approaching. Credit Unions must state “Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.” on emails and letters to members from 1 April 2014.
It is therefore worthwhile for all Credit Unions to review their websites, letters and emails to ensure they are making the appropriate disclosures. For more information please see the PRA regulatory pages.