On 3 January 2017, the FCA will introduce new rules on deferred shares and subordinated debt for Credit Unions. Earlier this year, the FCA proposed changes to the rules for these products in CP16/17. Following the consultation process the FCA have decided to make their rules largely as they had initially proposed.
Whats changed for subordinated debt and deferred shares
The rules focus on ensuring individuals, small business and small charities are aware of the risks of these investments, Any Credit Union looking to issue either deferred shares or subordinated debt therefore need to be aware of the rules. Further details can be found in the FCA handbook notice.