CRED App 2.1 Detailed contents of CRED
1 |
Introduction |
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1.1 |
The Credit Unions sourcebook |
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2 |
Reader's Guide |
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2.1 |
What is this guide? |
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2.2 |
Structure |
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2.3 |
Contents of CRED |
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2.4 |
Status of provisions |
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2.4.2 |
Rules: R |
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2.4.4 |
Evidential provisions: E |
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2.4.6 |
Guidance: G |
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2.4.11 |
Direction: D |
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2.5 |
Numbering: Pages |
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2.6 |
Numbering: Contents |
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2.7 |
Defined terms |
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2.8 |
Schedules |
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2.8.2 |
Transitional provision |
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2.8.3 |
Schedule 1: Rules that can be waived |
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2.8.4 |
Schedule 2: Notification requirements |
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2.8.5 |
Schedule 3: Contents of the FSA Handbook |
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2.8.6 |
Schedule 4: Powers exercised in making the Handbook |
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2.8.7 |
Schedule 5: Rights of action for damages |
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2.8.8 |
Schedule 6: Rules that can be waived |
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2.8.9 |
Schedule 7: Schedule of releases1 |
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3 |
The FSA's Principles for Businesses |
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3.1 |
Application and Purpose |
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3.2 |
The Principles |
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3.3 |
Consequences of breaching the Principles |
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4 |
Senior management arrangements, systems and controls |
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4.1 |
Application and purpose |
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4.2 |
Apportionment of responsibilities |
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4.3 |
Systems and controls |
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4.3.1 |
General |
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4.3.5 |
Rules and evidential provisions |
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4.3.15 |
Committee of management |
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4.3.19 |
Organisation |
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4.3.28 |
Documentation of systems of control |
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4.3.32 |
Accounting records and systems |
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4.3.37 |
Compliance |
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4.3.41 |
Management information |
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4.3.46 |
Information for the FSA |
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4.3.47 |
Personnel |
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4.3.50 |
Internal Audit |
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4.3.61 |
Business planning |
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4.3.69 |
Documentation of policies and procedures |
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4.3.72 |
Business continuity |
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5 |
Threshold conditions |
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5.1 |
Application and purpose |
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5.2 |
The Conditions |
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6 |
The Approved persons Regime |
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6.1 |
Application and purpose |
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6.2 |
The Statements of Principle of Code of Practice for Approved Persons (APER) |
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6.2.2 |
Introduction |
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6.2.4 |
The Statements of Principle |
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6.2.6 |
Code of Practice for Approved persons |
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6.2.7 |
Factors relevant to Statements of Principle |
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6.2.9 |
Enforcement procedures |
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6.3 |
Approved Persons |
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6.3.2 |
Introduction |
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6.3.3 |
Purpose of the regime |
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6.3.4 |
Controlled functions |
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6.3.5 |
Specification of functions |
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6.4 |
Assessing fitness and propriety |
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6.4.1 |
Purpose |
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6.4.2 |
Background |
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6.4.3 |
Assessing fitness and propriety |
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7 |
Investment and borrowing |
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7.1 |
Application, purpose and interpretation |
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7.2 |
Investment |
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7.2.1 |
Types of investment |
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7.2.2 |
Maturity of investments5 |
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7.2.4 |
Cash in custody of officers |
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7.2.5 |
Investment conditions no longer satisfied |
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7.2.6 |
Transactions between credit unions |
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7.3 |
Borrowing and Financial risk management2 |
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7.3.16 |
Borrowing |
6
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7.3.7 |
Financial risk management policy statement |
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27A |
Shareholding |
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2 7A.1 |
Application and purpose |
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2 7A.2 |
Members' shares |
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2 7A.2.1 |
Maximum shareholdings |
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2 7A.2.5 |
Joint accounts |
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2 7A.2.7 |
Dividends on shares |
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2 7A.3 |
Deposits6 |
6
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2 7A.4 |
Insurance against fraud or other dishonesty |
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2 Ann 1 |
Insurance against fraud or other dishonesty |
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8 |
Capital requirements |
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8.1 |
Application and purpose |
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8.2 |
Components of capital |
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8.3 |
Version 1 credit unions |
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8.3.1 |
Requirement to maintain positive net worth |
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8.3.5 |
Building reserves |
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8.3.9 |
Minimum initial capital |
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8.3.12 |
Capital requirement for version 1 credit unions wishing to lend amounts of more than £5,000 in excess of the borrowing member's shareholding |
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8.3.14 |
Capital requirements for large version 1 credit unions |
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8.4 |
Version 2 credit unions |
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8.4.3 |
Minimum initial capital |
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9 |
Liquidity |
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9.1 |
Application, purpose and interpretation |
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9.2 |
General requirements |
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9.3 |
Minimum liquidity requirements |
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10 |
Lending to members5 |
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10.1 |
Application and purpose |
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10.2 |
General requirements |
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10.3 |
Lending limits |
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10.4 |
Large exposures |
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10.5 |
Provisioning |
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11 |
Conduct of business4 |
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11.1 |
Introduction |
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11.2 |
Financial promotion |
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4 11.3 |
Statutory status disclosure |
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11.47 |
Entering into a distance contract for accepting deposits7 |
7
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9 | [deleted]9 |
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13 |
Registration and Authorisation |
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13.1 |
Application and purpose |
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13.2 |
Introduction |
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13.2A6 |
Use of name "credit union"6 |
6
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13.3 |
What does registration mean? |
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13.4 |
Process for registration |
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13.5 |
What does authorisation involve? |
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13.6 |
Process for Part IV permission |
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13.7 |
Applying for approved persons status |
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13.8 |
The FSA's decision making procedures |
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Ann 1 |
Requirements of Registration [table] |
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Ann 1A8 |
Common bond8 |
8
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Ann 1B8 |
8 | ||
Ann 1C8 |
Qualifications approved by the FSA (and the Registry of Friendly Societies)8 |
8
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3 Ann 2 |
Eligibility for membership of a credit union |
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14 |
Supervision |
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14.1 |
The FSA's approach to supervision |
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14.1.1 |
Application and purpose |
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14.1.6 |
The FSA's risk based approach to supervision |
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14.1.7 |
Tools of supervision |
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14.2 |
Information gathering by the FSA on its own initiative |
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14.2.1 |
Application and purpose |
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14.2.7 |
Information gathering by the FSA on its own initiative: background |
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14.2.9 |
Information gathering by the FSA on its own initiative: cooperation by credit unions |
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14.2.13 |
"Mystery Shopping" |
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14.3 |
Auditors |
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14.3.1 |
Application and purpose |
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14.3.3 |
Appointment of auditors |
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14.3.5 |
Auditors' qualifications |
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14.3.12 |
Auditors' independence |
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14.3.16 |
Credit unions' cooperation with their auditors |
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14.3.20 |
Notification of matters raised by auditor |
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14.3.22 |
Rights and duties of all auditors |
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14.4 |
Skilled persons |
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14.4.1 |
Application and purpose |
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14.4.3 |
The FSA's power |
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14.4.4 |
Policy on the use of skilled persons |
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14.4.5 |
Appointment and reporting process |
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14.4.6 |
Duties of a credit union |
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14.4.8 |
Confidential information privilege |
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14.5 |
Application to vary or cancel Part IV permission |
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14.5.1 |
Application and purpose |
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14.5.5 |
Introduction |
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14.5.6 |
Applications for variation of permission |
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14.5.15 |
Applications for cancellation of permission |
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14.5.29 |
Ending authorisation |
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14.5.30 |
Additional guidance |
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14.6 |
Individual requirements |
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14.6.1 |
Application and purpose |
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14.6.4 |
The FSA's powers to set individual requirements on its own initiative |
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14.6.7 |
Criteria for varying a credit union's permission |
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14.7 |
Waiver and modification of rules |
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14.7.1 |
Application and purpose |
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14.7.3 |
Introduction |
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14.7.5 |
Applying for a waiver |
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14.7.11 |
Notification of altered circumstances relating to waivers |
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14.7.12 |
Publication of waivers |
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14.7.15 |
Varying waivers |
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14.7.16 |
Revoking waivers |
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14.7.19 |
Decision making |
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14.8 |
Individual guidance |
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14.8.1 |
Application and purpose |
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14.8.4 |
Making a request for individual guidance |
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14.8.7 |
Giving individual guidance to a credit union on the FSA's own initiative |
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14.8.9 |
Reliance on individual guidance |
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14.9 |
Notifications to the FSA |
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14.9.1 |
Application and purpose |
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14.9.3 |
General notification requirements |
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14.9.13 |
Core information requirements |
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14.9.15 |
Inaccurate, false or misleading information |
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14.9.18 |
Form and method of notification |
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14.10 |
Reporting requirements |
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14.10.1 |
Application and purpose |
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14.10.4 |
General provisions on reporting |
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14.10.5 |
Quarterly Return |
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14.10.7 |
Annual Return |
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14.10.9 |
Accounts and audit |
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5 14.10.12 |
Financial penalties for late submission of reports |
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14.10.136 |
Controllers and close links 6 |
6
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Ann 1 |
Accounts and audit - Friendly and Industrial and Provident Societies Act 1968 |
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15 |
Enforcement |
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15.1 |
Application and purpose |
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15.2 |
Investigation and enforcement powers |
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15.3 |
The FSA's approach to the use of its investigation and enforcement powers |
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15.4 |
The FSA's policies and procedures for taking enforcement action |
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3 15.5 |
Financial penalties for late submission of reports |
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Ann 1 |
Enforcement Powers [table - powers available under Industrial and Provident Societies legislation and the Credit Unions Act 1979] |
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Ann 2 |
Enforcement Powers [table - powers referred to in ENF] |
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3 Ann 3 |
Financial Penalties [table - indicative scale of financial penalties for reports no more than 28 days late] |
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16 |
Decision making manual (DEC) |
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16.1 |
Application and purpose |
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16.2 |
Introduction |
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16.3 |
Guidance on DEC |
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16.3.1 |
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16.3.3 |
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16.3.4 |
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16.3.5 |
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16.3.10 |
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17 |
Complaint handling procedures for credit unions5 |
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2 17.1 |
Application and purpose |
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17.2 |
Internal complaint handling procedures: general requirements |
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17.3 |
Eligible complainants |
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17.4 |
Internal complaint handling procedures: additional requirements |
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17.5 |
Time limits for dealing with a complaint |
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17.6 |
Record keeping and reporting |
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17.7 |
Co-operation by credit unions with the Ombudsman |
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5 Ann 1 |
Complaints report |