A number of key points were raised by the FCA, PRA and Treasury at the recent ABCUL conference, including:
- The PRA are planning a rewrite of CREDS to make it simpler and more straightforward. These core rules would be all that small and straightforward Credit Unions would be required to follow. There would then be additional rules for Credit Unions depending on which additional business activities they are undertaking.
- Except for the largest Credit Unions, the FCA indicated that they will be requesting Credit Unions to complete a questionnaire which will be the basis for their regulation. They will follow this up with validation visits to check the data is correct to a sample of Credit Unions.
- The PRA are looking to take a tough line with Credit Unions who fail the 3% capital asset ratio next year.
- For those requiring a consumer credit licence you only have until the end of March to register with the FCA. Further information is contained in Factsheet 32 which can be found on the FCA website.
- The Co-operative and Community Benefit Bill 2014 is expected to be launched in August.