CRED 5.1 Application and purpose

This chapter applies to all credit unions. It also applies to any person seeking to become authorised as a credit union.

The purpose of this chapter is to provide additional guidance to credit unions on the basic requirements that all credit unions must meet if they are to be allowed to carry on a regulated activity.

Schedule 6 to the Act sets out the threshold conditions for authorisation. COND contains guidance for all firms on the threshold conditions.

In order to become authorised under the Act all firms must meet the threshold conditions.

The threshold conditions must be met on a continuing basis by credit unions. Failure to meet one of the conditions is sufficient grounds for the exercise by the FSA of its powers (see EG).1