CRED 14.6 Individual requirements

This section and SUP 7 apply to all credit unions.

This section is a summary of SUP 7.

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 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;1

3. (3)

   1it is otherwise desirable in order to meet any of the FSA's regulatory objectives.

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

A credit union may refer this decision to the Tribunal.2

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.

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.

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.

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.