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Status: You are viewing the version of the handbook as on 2009-03-31.

CRED 14.4 Skilled persons

Application and purpose

CRED 14.4.1G

This section and SUP 5 apply to all credit unions.

CRED 14.4.2G

The purpose of this section is to summarise SUP 5, which gives guidance on the FSA's use of the power in section 166 of the Act (Reports by skilled persons).

The FSA's power

CRED 14.4.3G

SUP 5.2 explains that the FSA may, by giving written notice, require a credit union to provide it with a report by a skilled person.

Policy on the use of skilled persons

CRED 14.4.4G

SUP 5.3 explains the FSA's policy on the use of skilled persons. The FSA will have regard to all relevant factors, including the circumstances of the credit union, the availability of alternative tools and the cost implications for the credit union (which would have to pay for the services of the skilled person).

Appointment and reporting process

CRED 14.4.5G

SUP 5.4 explains the appointment and reporting process. The FSA will send to a credit union a notice requiring it to provide a report by a skilled person, and give written notification of the report's purpose, scope, and timetable. The FSA will normally seek to agree with the credit union in advance which skilled person (whether accountant, lawyer or other person with relevant skills) will make the report.

Duties of a credit union

CRED 14.4.6G

SUP 5.5.1 R and SUP 5.5.5 R set out what is required in the contract between the credit union and the skilled person.

CRED 14.4.7G

SUP 5.5.11 G states that a credit union must provide all reasonable assistance to the skilled person.

Confidential information privilege

CRED 14.4.8G

SUP 5.6 explains what confidentiality provisions apply when the FSA passes on relevant information to a skilled person.