On 24 June 2024 the PRA issued Consultation Paper 13/25 on Credit Union Service Organisations (CUSOs). The main proposals within the paper are:
- To amend the credit union rulebook to allow Credit Unions to invest in CUSSOs
- To set out expectations for Credit Unions that use CUSSOs within SS2/23 including that credit unions:
- carry out due diligence and risk analysis before investing in a CUSO.
- liability in a CUSSO is limited to the amount invested
- restrict the amount invested in all CUSSOs by a credit union to be no more than 5% of a credit union’s capital (where a credit union uses its own capital to fund the investment)
- have a policy on how they will supervise the CUSSO and manage the associated risks.
- Amend Chapter 17 of SS2/23 for the planned removal of SS20/15
The consultation paper can be found here and the deadline for responses is the 24 October 2025.