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CRED 14.6 Individual requirements

Application and purpose

CRED 14.6.1G

This section and SUP 7 apply to all credit unions.

CRED 14.6.2G

This section is a summary of SUP 7.

CRED 14.6.3G

The FSA's Handbook primarily contains provisions that apply to all credit unions. However, the FSA may judge it necessary or desirable to impose additional requirements on a credit union or amend the activities it has permission to undertake. Doing so enables the FSA to take account of a credit union's individual circumstances and assists the FSA in meeting its regulatory objectives.

The FSA's powers to set individual requirements on its own initiative

CRED 14.6.4G

The FSA may vary a credit union'sPart IV permission on its own initiative where:

  1. (1)

    one or more of the threshold conditions is, or is likely to be, no longer satisfied;

  2. (2)

    it is desirable in order to protect members.

CRED 14.6.5G

If the FSA exercises its powers, it will do so by issuing a supervisory notice.

CRED 14.6.6G

A credit union may refer this decision to the Financial Services and Markets Tribunal.

Criteria for varying a credit union's permission

CRED 14.6.7G

The FSA expects to maintain a close working relationship with credit unions and expects that routine supervisory matters can be resolved by issuing guidance. However, the FSA may seek to vary a credit union'spermission:

  1. (1)

    if it is appropriate to act formally so that enforcement action can be taken if necessary;

  2. (2)

    so that a credit union can comply without breaking agreements with third parties.

CRED 14.6.8G

The FSA may seek to vary on its own initiative a permission if risks are presented by:

  1. (1)

    a credit union's management, business or internal controls;

  2. (2)

    its involvement in new products or selling practices;

  3. (3)

    a change in its structure, activities or strategy.

CRED 14.6.9G

The following are some of the requirements or limitations that may be imposed:

  1. (1)

    submission of reports;

  2. (2)

    maintenance of prudential limits;

  3. (3)

    submission of business plan;

  4. (4)

    limitation of activities;

  5. (5)

    maintenance of financial resources.

CRED 14.6.10G

The FSA will seek to give reasonable notice of intent to vary a permission and to agree an appropriate time scale with the credit union. However, the FSA may act immediately if that is necessary to protect members.