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CRED 14.10 Reporting requirements

Application and purpose

CRED 14.10.1G

This section and SUP 16.12.1 G - SUP 16.12.4 R6 apply to all credit unions.

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CRED 14.10.2G

This section is a summary of those parts of SUP that apply to every credit union.

CRED 14.10.3G

In order to discharge its functions under the Act, the FSA needs timely and accurate information about credit unions on a regular basis. The provision of this information enables the FSA to build up over time a picture of credit unions' circumstances and behaviour.4

General provisions on reporting

CRED 14.10.4G

SUP 16.3.6 -SUP 16.3.13 state that a report must:

  1. (1)

    be in writing;

  2. (2)

    give the credit union's FSA reference number;

  3. (3)

    be given to or addressed for the attention of the credit union's usual supervisory contact at the FSA;

  4. (4)

    be delivered to the FSA by one of the following methods:1

    1. (a)

      by post to The Financial Services Authority, PO Box 35747, London E14 SWP;1

    2. (b)

      self delivery to The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS (and obtaining a dated receipt);1

    3. (c)

      electronic mail to an address for the credit union's usual supervisory contact at the FSA and obtaining an electronic confirmation of receipt;1

    4. (d)

      hand delivery to the credit union's usual supervisory contact at the FSA and obtaining a date receipt;1

    5. (e)

      fax to the number notified by the credit union's usual supervisory contact at the FSA, followed by one of the methods in (a) - (d) within five business days after the date of the faxed submission.1

CRED 14.10.4AG

3SUP 16.3.11 states that a credit union must submit reports to the FSA containing all the information required.

CRED 14.10.4BG

3SUP 15.6 refers to and contains requirements regarding the steps that credit unions must take to ensure that information provided to the FSA is accurate and complete. Those requirements apply to reports required to be submitted under SUP 16 (Reporting requirements).

CRED 14.10.4CG
  1. (1)

    3SUP 16.3.13 states that a credit union must submit a report in the frequency, and so as to be received by the FSA no later than the due date, specified for that report.

  2. (2)

    SUP 16.3.13 states that if the due date for submission of a report required by SUP 16 falls on a day which is not a business day the report must be submitted so as to be received by the FSA no later than the first business day after the due date.

  3. (3)

    SUP 16.3.13 states that if the due date for submission of a report required by SUP 16 is a set period of time after the quarter end, the quarter ends will be the following dates, unless another rule or the reporting form states otherwise:

    1. (a)

      the 'credit union's accounting reference date;

    2. (b)

      3 months after the credit union's accounting reference date;

    3. (c)

      6 months after the credit union's accounting reference date; and

    4. (d)

      9 months after the credit union's accounting reference date.

CRED 14.10.4DG

3If a credit union fails to submit a complete annual report by the date on which it is due in accordance with the rules in SUP 16.126 and any prescribed submission procedures, the credit union must pay an administrative fee of £250 (see SUP 16.3.14 R).7 Failure to submit a report in accordance with the rules in SUP 16.126 may also7 lead to the imposition of a financial penalty and other disciplinary sanctions (see DEPP8).

668
CRED 14.10.4EG

3The FSA may from time to time send reminders to credit unions when reports are overdue. Credit unions should not, however, assume that the FSA has received a report merely because they have not received a reminder.

CRED 14.10.4FG

3The credit union is responsible for ensuring delivery of the required report at the FSA's offices by the due date. If a report is received by the FSA after the due date and the credit union believes its delivery arrangements were adequate, it may be required to provide proof of those arrangements. Examples of such proof would be:

  1. (1)

    "proof of posting" receipts from a UK post office or overseas equivalent which demonstrate that the report was posted early enough to allow delivery by the due date in accordance with the delivery service standards prescribed by the relevant postal authority; or

  2. (2)

    recorded postal delivery receipts showing delivery on the required day; or

  3. (3)

    records of a courier service provider showing delivery on the required day.

Change of accounting reference date3

CRED 14.10.4GG
  1. (1)

    3SUP 16.3.17 states that a credit union must notify the FSA if it changes its accounting reference date.

  2. (2)

    When a credit union extends its accounting period, it must make the notification in (1) before the previous accounting reference date.

  3. (3)

    When a credit union shortens its accounting period, it must make the notification in (1) before the new accounting reference date.

CRED 14.10.4HG

4CRED 14.10.3 G emphasises the importance to the FSA of timely and accurate information. The extension of a credit union's accounting period (as a result of a change of accounting reference date) to more than 15 months may hinder the timely provision of relevant and important information to the FSA, or its regularity. This is because some due dates for reporting to the FSA are linked to credit union's accounting reference dates. If the extension of a credit union's accounting period appears likely to impair the effectiveness of the FSA's supervisory work, the FSA may take action to ensure that it continues to receive the information it requires on a timely basis. This may include the use of any of the tools of supervision set out in CRED 14.1.9 G.

Quarterly return

CRED 14.10.5G

SUP 16.12.5 R states6 that a credit union must submit a quarterly return.

6
CRED 14.10.6G

This table belongs to CRED 14.10.5G

Content of report

Form

Frequency

Due date

Key financial data

CQ 2

Quarterly

One month after quarter end

Annual return

CRED 14.10.7G

SUP 16.12.5 R 6states that a credit union must submit an annual return.

6
CRED 14.10.8G

This table belongs to CRED 14.10.7G

Content of report

Form

Frequency

Due date

Extended financial data

CY

Annually

Seven months after financial year end2

CRED 14.10.8AG

The form may be updated from time to time. Credit unions should use the form in force at the end of the financial year on which they are reporting.5

Accounts and audit

CRED 14.10.9G

2Credit unions are required by the Friendly and Industrial and Provident Societies Act 1968 to publish audited accounts. CRED 14 Annex 1 G contains further information about these requirements.

CRED 14.10.10R
  1. (1)

    2Every credit union must send to the FSA a copy of its audited accounts published in accordance with section 3A of the Friendly and Industrial and Provident Societies Act 1968 (See CRED 14 Annex 1 G.)

  2. (2)

    The accounts must:

    1. (a)

      be made up for the period beginning with the date of the credit union's registration or with the date to which the credit union's last annual accounts were made up, whichever is the later, and ending on the credit union's most recent financial year end; and

    2. (b)

      accompany the annual return submitted to the FSA under SUP 16.12.5 R6 (see CRED 14.10.7 G), unless they have been submitted already.

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CRED 14.10.11R

2Every credit union must supply free of charge to every member or person interested in the funds of the credit union who applies for it a copy of the latest audited accounts of the credit union sent to the FSA under CRED 14.10.10 R.

Financial penalties for late submission of reports

CRED 14.10.12G
  1. (1)

    4Financial penalties may be imposed for the late submission of:

    1. (a)

      the quarterly and annual returns referred to in CRED 14.10.5 G and CRED 14.10.7 G; and

    2. (b)

      the audited accounts referred to in CRED 14.10.10 R.

  2. (2)

    Details of the FSA's policy and procedures on financial penalties are given in CRED 15.5 (Financial penalties for late submission of reports) and CRED 15 Annex 3 G.

Controllers and close links

CRED 14.10.13G
  1. (1)

    Credit unions are subject to the requirements of the Act and SUP 11 on controllers and close links, and are bound to notify the FSA of changes. In practice, however, credit unions cannot develop such relationships, because:5

    1. (a)

      only individuals may be members of a credit union (section 5(1) of the Credit Unions Act 1979);5

    2. (b)

      every member is entitled to vote and has one vote only (section 5(9) of the Credit Unions Act 1979);5

    3. (c)

      the minimum number of members of a credit union is 21 (section 6(1) of the Credit Unions Act 1979) and its registration may be cancelled if membership falls below that number (section 16(1)(a)(i) of the Industrial and Provident Societies Act 1968 and section 20(1)(a) of the Credit Unions Act 1979); and5

    4. (d)

      a credit union may not have a subsidiary (section 26 of the Credit Unions Act 1979).5

  2. (2)

    Credit unions are therefore exempted from the requirement to submit annual reports of controllers and close links (SUP 16.1.1, SUP 16.1.3, SUP 16.4.1G(-1)(-1) and SUP 16.5.1G(-1)).5