Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

CREDS 3A.3 Borrowing


1A credit union must not borrow from a natural person, except by way of a subordinated loan qualifying as capital under PRA rules.


CREDS 3A.3.1R does not apply to borrowing from a body corporate. A loan made to a credit union by a body corporate can either be a subordinated loan (providing regulatory capital within PRA rules) or a senior loan (providing ordinary funding, but not constituting regulatory capital).


2A credit union must not require any of its members to make a subordinated loan to the credit union or purport to do so.