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CREDS 8.1 Application and purpose

Application

CREDS 8.1.1 G

1This section applies to all credit unions.

Purpose

CREDS 8.1.2 G

The purpose of this section is to provide additional rules and guidance relating to reporting requirements that are specific to credit unions. Credit unions also need to comply with the relevant provisions of SUP relating to reporting, including SUP 16.3 and SUP 16.12.

CREDS 8.2 Reporting requirements

CREDS 8.2.1 G

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CREDS 8.2.2 G

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CREDS 8.2.3 G

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CREDS 8.2.4 G

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CREDS 8.2.5 G

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Accounts and audit

CREDS 8.2.6 R
  1. (1)

    Every credit union (except a Northern Ireland credit union) 2must send to the FCA2 a copy of its audited accounts published in accordance with section 82 of the Co-operative and Community Benefit Societies Act 20142.

    1
  2. (2)

    The accounts must:

    1. (a)

      be made up for the period beginning with the date of the credit union's registration or with the date to which the credit union's last annual accounts were made up, whichever is the later, and ending on the credit union's most recent financial year end; and

    2. (b)

      be delivered to the FCA by one of the methods listed in CREDS 8.2.6AR no later than six months after the credit union’s financial year end.2

CREDS 8.2.6A R

2The methods referred to in CREDS 8.2.6R(2)(b) are:

  1. (1)

    by e-mail to mutual.societies@fca.org.uk; or

  2. (2)

    by post to Mutuals Team, Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS.

CREDS 8.2.7 R

Every credit union must make available, 2free of charge, to every member or person interested in the funds of the credit union who applies for it, a copy of the latest audited accounts of the credit union sent to the FCA2 under CREDS 8.2.6 R.

Financial penalties for late submission of reports

CREDS 8.2.8 G

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CREDS 8.3 Approved persons

Purpose

CREDS 8.3.1 G

The purpose of this section is to set out 2guidance relating to the FCA’s requirements about2approved persons that apply2 to credit unions. The full details can be found in Chapter 10C2 of the Supervision manual (SUP)2.

CREDS 8.3.2 G

The PRA also has a regime about approved persons in credit unions, which can be found in its Rulebook. CREDS does not summarise the PRA’s regime.2

Summary of the FCA’s requirements about approved persons in credit unions

CREDS 8.3.3 G
  1. (1)

    The effect of section 59 of the Act is that if a person is to perform certain functions (which are known as controlled functions) for a credit union, the credit union should first apply for approval to:2

    1. (a)

      the FCA (if the controlled function is specified by the FCA in its rules); or2

    2. (b)

      the PRA (if the controlled function is specified by the PRA in its rules).2

  2. (2)

    The firm should not allow the person to perform that function until the firm receives the approval.2

  3. (3)

    A person for whom the firm has received that approval is called an approved person.2

CREDS 8.3.4 G
  1. (1)

    The regime for approved persons differs between relevant authorised persons and other types of firm.2

  2. (2)

    A credit union is a type of relevant authorised person.2

  3. (3)

    SUP 10C deals with the approved persons requirements for credit unions and other relevant authorised persons.2

CREDS 8.3.5 G
  1. (1)

    The controlled functions specified by the FCA for credit unions and other relevant authorised persons can be found in the table in SUP 10C.4.3R.2

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  2. (2)

    The controlled functions specified by the PRA for credit unions and other relevant authorised persons can be found in the PRA’s Rulebook. They are not summarised in the Handbook.2

CREDS 8.3.6 G

2

  1. (1)

    The FCA and the PRA have specified different functions.2

  2. (2)

    Sometimes a person’s job description means that they are performing an FCA controlled function and a PRA controlled function at the same time for the same firm. SUP 10C.9 has arrangements that reduce the need for the same person to be approved by both the FCA and the PRA.2

CREDS 8.3.7 G

There are two types of controlled function under the Act:2

  1. (1)

    a designated senior management function; and2

  2. (2)

    any other controlled function.2

CREDS 8.3.8 G
CREDS 8.3.9 G

2As well as listing the FCA’sdesignated senior management functions for credit unions and other relevant authorised persons, SUP 10C has other requirements about SMF managers:

  1. (1)

    SUP 10C sets out the procedures for applying for, granting, removing and varying approval as an SMF manager.

  2. (2)

    SUP 10C requires firms to give various types of reports to the FCA about their SMF managers.

  3. (3)

    SUP 10C explains that each firm must prepare a statement of responsibilities for each of its SMF managers. A statement of responsibilities is a description of the SMF manager’s responsibilities in connection with the designated senior management functions for which they are approved.