1This section applies to all credit unions.
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.
[deleted]3
[deleted]3
[deleted]3
Every credit union (except a Northern Ireland credit union) 3must send to the FCA3 a copy of its audited accounts published in accordance with section 82 of the Co-operative and Community Benefit Societies Act 20143.
1The accounts must:
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
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.3
3The methods referred to in CREDS 8.2.6R(2)(b) are:
by e-mail to mutual.societies@fca.org.uk; or
by post to Mutuals Team, Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS.
Every credit union must make available, 3free 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 FCA3 under CREDS 8.2.6 R.
[deleted]3
The purpose of this section is to set out further guidance relating to the approved persons regime that is specific to credit unions. Credit unions should also read Chapter 10 of the Supervision manual (SUP) concerning approved persons.
The effect of section 59 of the Act and SUP 10 is that a credit union must apply to the appropriate regulator for the approval of one or more individuals to perform the functions which are known as controlled functions. Controlled functions fall within two groups:
The significant influence functions describe the roles performed by the governing body and senior managers of the firm who exert a significant influence over the regulated activities of the firm.
The customer functions describe the roles of individuals who deal with customers or with the property of customers. These customer functions do not extend to activities in relation to accepting deposits or general insurance and therefore will not be relevant to credit unions with permission for accepting deposits only.
The complete list of all controlled functions is located in SUP 10.4.5 R. Guidance on those controlled functions most likely to be relevant to credit unions is provided below.
SUP 10.6 : the governing functions:
SUP 10.6.4 R: the director function, This is the function of acting in the capacity of a director of a credit union.
SUP 10.6.8 R: the non-executive director function. It is unusual for a credit union to appoint non-executive directors as such. But this function would include membership of a credit union's supervisory committee and any other committee which scrutinises the approach of executive management, the credit union's performance, and its standards of conduct.
SUP 10.6.11 R: the chief executive function. Acting in the capacity of chief executive, whether or not using that title. This role includes anyone having the responsibility, alone or jointly with one or more others, under the immediate authority of the committee of management, for the conduct of the whole of the business.
SUP 10.7 : the required functions:
[deleted]1
1SUP 10.7.13 R: the money laundering reporting function. This is the function of acting in the capacity of the money laundering reporting officer of a credit union.
SUP 10.8 : the systems and controls function. This is the function of acting as an employee with responsibility for reporting to the committee of management in relation to:
the credit union's financial affairs; or
setting and controlling its risk exposure; or
adherence to internal systems and controls, procedures and policies.
Where an employee performs the systems and controls function the appropriate regulator would expect the credit union to ensure that the employee had sufficient expertise and authority to perform that function effectively, for example by occupying the role of a director or senior manager.
5 SUP 10A.9 5: the significant management functions: This controlled function will only apply to the credit union if the function is not being performed by a member of the committee of management and the credit union has followed the guidance in 5SUP 10A.9.4 G5.
