Related provisions for IPRU-INV 13.1.20
In addition to the specific requirements in IPRU(INV) 13.1.9R to IPRU(INV) 13.1.13R4
, the policy must make provision for the following:
- (1)
for a firm with relevant income of more than £10,000,0004, the aggregate limit identified in the table below:
- (2)
full retroactive cover in respect of the kinds of liabilities described in 13.1.9R for claims arising from work carried out by the firm, or on its behalf, in the past; and
- (3)
Relevant income is (£) |
Minimum aggregate limit of indemnity |
|
more than |
up to |
(£) |
10,000,000 |
12,500,000 |
2,000,000 |
12,500,000 |
15,000,000 |
2,400,000 |
15,000,000 |
17,500,000 |
2,800,000 |
17,500,000 |
20,000,000 |
3,150,000 |
20,000,000 |
25,000,000 |
3,800,000 |
25,000,000 |
30,000,000 |
4,250,000 |
30,000,000 |
35,000,000 |
4,500,000 |
35,000,000 |
40,000,000 |
4,750,000 |
40,000,000 |
50,000,000 |
5,500,000 |
50,000,000 |
60,000,000 |
6,000,000 |
60,000,000 |
70,000,000 |
6,750,000 |
70,000,000 |
80,000,000 |
7,250,000 |
80,000,000 |
90,000,000 |
7,750,000 |
90,000,000 |
100,000,000 |
8,500,000 |
100,000,000 |
150,000,000 |
11,250,000 |
150,000,000 |
200,000,000 |
14,000,000 |
200,000,000 |
250,000,000 |
17,000,000 |
250,000,000 |
300,000,000 |
19,750,000 |
300,000,000 |
n/a |
22,500,000 |
If a firm seeks to have an excess which is higher than the relevant limit, it must hold additional capital as calculated in accordance with the appropriate table below:
Table: Calculation of additional capital for firm not holding client money or other client assets (£000's)
Income |
Excess obtained up to and including: |
|||||||||||||
More than |
Up to |
2.5 |
5 |
10 |
15 |
20 |
25 |
30 |
40 |
50 |
75 |
100 |
150 |
200+ |
0 |
100 |
0 |
5 |
9 |
12 |
14 |
17 |
19 |
23 |
26 |
33 |
39 |
50 |
59 |
100 |
200 |
0 |
7 |
12 |
16 |
19 |
22 |
25 |
30 |
34 |
43 |
51 |
64 |
75 |
200 |
300 |
0 |
7 |
12 |
16 |
20 |
24 |
27 |
32 |
37 |
47 |
56 |
71 |
84 |
300 |
400 |
0 |
0 |
12 |
16 |
21 |
24 |
28 |
34 |
39 |
50 |
60 |
77 |
91 |
400 |
500 |
0 |
0 |
11 |
16 |
21 |
24 |
28 |
34 |
40 |
53 |
63 |
81 |
96 |
500 |
600 |
0 |
0 |
10 |
16 |
20 |
24 |
28 |
35 |
41 |
54 |
65 |
84 |
100 |
600 |
700 |
0 |
0 |
0 |
15 |
20 |
24 |
28 |
35 |
41 |
55 |
67 |
87 |
104 |
700 |
800 |
0 |
0 |
0 |
14 |
19 |
24 |
28 |
35 |
42 |
56 |
68 |
89 |
107 |
800 |
900 |
0 |
0 |
0 |
13 |
18 |
23 |
27 |
35 |
42 |
56 |
69 |
91 |
109 |
900 |
1,000 |
0 |
0 |
0 |
0 |
17 |
22 |
27 |
34 |
41 |
57 |
70 |
92 |
111 |
1,000 |
1,500 |
0 |
0 |
0 |
0 |
0 |
21 |
26 |
34 |
41 |
57 |
71 |
97 |
118 |
1,500 |
2,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
30 |
38 |
56 |
71 |
98 |
121 |
2,000 |
2,500 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
24 |
33 |
53 |
69 |
99 |
126 |
2,500 |
3,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
28 |
50 |
68 |
101 |
130 |
3,000 |
3,500 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
47 |
67 |
101 |
132 |
3,500 |
4,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
43 |
65 |
101 |
133 |
4,000 |
4,500 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
39 |
62 |
101 |
134 |
4,500 |
5,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
58 |
99 |
134 |
5,000 |
6,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
54 |
97 |
133 |
6,000 |
7,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
91 |
131 |
7,000 |
8,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
84 |
126 |
8,000 |
9,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
75 |
120 |
9,000 |
10,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
113 |
10,000 |
100,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
100,000 |
n/a |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Table: Calculation of additional capital for firm holding client money or other client assets (£000's)
Income |
Excess obtained up to and including: |
||||||||||||
More than |
Up to |
5 |
10 |
15 |
20 |
25 |
30 |
40 |
50 |
75 |
100 |
150 |
200+ |
0 |
100 |
0 |
4 |
7 |
9 |
12 |
14 |
18 |
21 |
28 |
34 |
45 |
54 |
100 |
200 |
0 |
7 |
11 |
14 |
17 |
20 |
25 |
29 |
38 |
46 |
59 |
70 |
200 |
300 |
0 |
7 |
11 |
14 |
17 |
20 |
25 |
30 |
40 |
49 |
64 |
77 |
300 |
400 |
0 |
0 |
9 |
13 |
16 |
19 |
25 |
30 |
40 |
50 |
67 |
81 |
400 |
500 |
0 |
0 |
0 |
11 |
14 |
18 |
24 |
29 |
40 |
51 |
68 |
83 |
500 |
600 |
0 |
0 |
0 |
8 |
12 |
15 |
22 |
28 |
40 |
51 |
69 |
85 |
600 |
700 |
0 |
0 |
0 |
0 |
9 |
13 |
20 |
26 |
39 |
50 |
69 |
86 |
700 |
800 |
0 |
0 |
0 |
0 |
6 |
10 |
17 |
24 |
38 |
49 |
69 |
87 |
800 |
900 |
0 |
0 |
0 |
0 |
0 |
7 |
15 |
22 |
36 |
48 |
69 |
87 |
900 |
1,000 |
0 |
0 |
0 |
0 |
0 |
0 |
12 |
19 |
34 |
47 |
68 |
87 |
1,000 |
1,500 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
16 |
32 |
45 |
67 |
86 |
1,500 |
2,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
18 |
34 |
59 |
81 |
2,000 |
2,500 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
19 |
48 |
71 |
2,500 |
3,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
6 |
37 |
64 |
3,000 |
3,500 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
26 |
55 |
3,500 |
4,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
14 |
45 |
4,000 |
4,500 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
33 |
4,500 |
5,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
21 |
5,000 |
6,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
8 |
6,000 |
7,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
7,000 |
8,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
8,000 |
9,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
9,000 |
10,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
10,000 |
100,000 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
100,000 |
n/a |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
2The applicable data items referred to in SUP 16.12.4 R are set out according to type of firm in the table below:
Firms' prudential category and applicable data item (note 1) |
||||||
Exempt CAD firmssubject toIPRU(INV)Chapter 13 |
Firms(other thanexempt CAD firms) subject toIPRU(INV)Chapter 13 |
Firmsthat are also in one or more ofRAGs1 to 6 and not subject toIPRU(INV)Chapter 13 |
||||
Solvency statement |
No standard format (note 11) |
|||||
Balance Sheet |
FSA001/FINREP (Notes 2 and 29) |
FSA001 (Note 2) |
FSA029 |
Section A RMAR |
||
Income Statement |
FSA002/FINREP (Notes 2 and 29) |
FSA002 (Note 2) |
FSA030 |
Section B RMAR |
||
Capital Adequacy |
COREP (Note 29) |
FSA003 (Note 2) |
FSA032 |
Section D1 62 RMAR (Note 23) 5050 |
||
Credit risk |
COREP (Note 29) |
FSA004 (Notes 2, 3) |
||||
Market risk |
COREP (Note 29) |
FSA005 (Notes 2, 4) |
||||
Market risk - supplementary |
FSA006 (note 5) |
FSA006 (Note 5) |
||||
Operational risk |
COREP (Note 29) |
|||||
Large exposures |
COREP (Note 29) |
|||||
Exposures between core UK group and non-core large exposures group |
FSA018 (note 12) |
|||||
Solo consolidation data |
FSA016 |
FSA016 |
||||
Pillar 2 questionnaire |
FSA019 (note 8) |
FSA019 (Note 8) |
||||
Non-EEA sub-group |
COREP (Note 29) |
FSA028 (Note 9) |
||||
Professional indemnity insurance (note 15) |
Section E RMAR |
Section E RMAR |
Section E RMAR |
Section E RMAR |
||
Threshold Conditions |
Section F RMAR |
Section F RMAR |
||||
Training and Competence |
Section G RMAR |
Section G RMAR |
Section G RMAR |
Section G RMAR |
Section G RMAR |
|
COBS data |
Section H RMAR |
Section H RMAR |
Section H RMAR |
Section H RMAR |
Section H RMAR |
|
Client money and client assets |
Section C RMAR |
Section C RMAR |
Section C RMAR |
Section C RMAR |
||
Fees and levies |
Section J RMAR |
Section J RMAR |
Section J RMAR |
Section J RMAR |
||
Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
||
IRB portfolio risk |
FSA045 (note 13) |
FSA045 (Note 13) |
||||
Securitisation: non-trading book |
COREP (note 29) |
FSA046 (Note 14) |
||||
Daily Flows |
FSA047/COREP (Notes 16, 19, 21, 24 and 29) |
|||||
Enhanced Mismatch Report |
FSA048/COREP (Notes 16, 19, 21, 24 and 29) |
|||||
Liquidity Buffer Qualifying Securities |
FSA050/COREP (Notes 17, 20, 21, 24 and 29) |
|||||
Funding Concentration |
FSA051/COREP (Notes 17, 20, 21, 24 and 29) |
|||||
Pricing data |
FSA052/COREP (Notes 17, 20, 21, 24 and 29) |
|||||
Retail and corporate funding |
FSA053/COREP (Notes 17, 20, 21, 24 and 29) |
|||||
Currency Analysis |
FSA054/COREP (Notes 17, 20, 21, 24 and 29) |
|||||
Systems and Controls Questionnaire |
FSA055/COREP (Notes 18, 24 and 29) |
FSA055 (Notes 18 and 24) |
||||
Securitisation: trading book |
COREP (Note 29) |
FSA058 (Note 22) |
||||
Supplementary capital data for collective portfolio management investment firms |
FIN067 (Note 28) |
FIN068 (Note 28) |
||||
Note 1 |
When submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 24 R, or SUP 16 Annex 18A R in the case of the RMAR. Guidance notes for completion of the data items are contained in SUP 16 Annex 25 G, or SUP 16 Annex 18B G in the case of the RMAR. |
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Note 2 |
Firms that are members of a UK consolidation group are also required to submit this report on a UK consolidation group basis. |
|||||
Note 3 |
This applies to a firm that is required to submit data item FSA003 and, at any time within80 the 12 months up to its latest accounting reference date ("the relevant period"), was reporting data item FSA004 ("Firm A") or not reporting this item ("Firm B"). In the case of Firm A it must report this data item if one or both of its last two submissions in the relevant period show that the threshold was exceeded. In the case of Firm B it must report this item if both the last two submissions in the relevant period show that the threshold has been exceeded. The threshold is exceeded where data element 77A in data item FSA003 is greater than £10 million, or its currency equivalent, at the relevant reporting date for the firm. 5555 |
|||||
Note 4 |
This applies to a firm that is required to submit data item FSA003 and, at any time within the 12 months up to its latest accounting reference date ("the relevant period"), was reporting data item FSA005 ("Firm A") or not reporting this item ("Firm B"). In the case of Firm A it must report this data item if one or both of its last two submissions in the relevant period show that the threshold was exceeded. In the case of Firm B it must report this item if both the last two submissions in the relevant period show that the threshold has been exceeded. The threshold is exceeded where data element 93A in data item FSA003 is greater than £50 million, or its currency equivalent, at the relevant reporting date for the firm. |
|||||
Note 5 |
Only applicable to firms with a VaR model permission. |
|||||
Note 6 |
[deleted] |
|||||
Note 7 |
[deleted] |
|||||
Note 8 |
Only applicable to IFPRU investment firms and BIPRU firms that: (a) are subject to consolidated supervision under BIPRU 8, except those that are either included within the consolidated supervision of a group that includes a UK credit institution, or that have been granted an investment firm consolidation waiver; or (b) have been granted an investment firm consolidation waiver; or (c) are not subject to consolidated supervision under BIPRU 8. An IFPRU investment firm and a BIPRU firm under (a) must complete the report on the basis of its UK consolidation group. An IFPRU investment firm and a BIPRU firm under (b) or (c) must complete the report on the basis of its solo position. |
|||||
Note 9 |
This will be applicable to firms that are members of a UK consolidation group on the reporting date. |
|||||
Note 10 |
[deleted]55 55 |
|||||
Note 11 |
Only applicable to a firm that is a sole trader or a partnership, when the report must be submitted by each partner. |
|||||
Note 12 |
Only applicable to a firm that has both a core UK group and a non-core large exposures group. |
|||||
Note 13 |
Only applicable to firms that have an IRB permission. |
|||||
Note 14 |
Only applicable to firms that hold securitisation positions, or are the originator or sponsor of securitisations of non-trading bookexposures. |
|||||
Note 15 |
This item only applies to firms that are subject to an FCA requirement to hold professional indemnity insurance and are not exempt CAD firms. |
|||||
Note 16 |
A firm must complete this item separately on each of the following bases (if applicable). (1) It must complete it on a solo basis. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. (2) If it is a group liquidity reporting firm in a DLG by default and is a UK lead regulated firm, it must complete the item on the basis of that group. (3) If it is a group liquidity reporting firm in a UK DLG by modification, it must complete the item on the basis of that group. (4) If it is a group liquidity reporting firm in a non-UK DLG by modification, it must complete the item on the basis of that group. |
|||||
Note 17 |
A firm must complete this item separately on each of the following bases that are applicable. (1) It must complete it on a solo basis unless it is a group liquidity reporting firm in a UK DLG by modification. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. (2) If it is a group liquidity reporting firm in a UK DLG by modification, it must complete the item on the basis of that group. |
|||||
Note 18 |
If it is a non-ILAS BIPRU firm, it must complete it on a solo basis. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. |
|||||
Note 19 |
(1) This item must be reported in the reporting currency. (2) If any data element is in a currency or currencies other than the reporting currency, all currencies (including the reporting currency) must be combined into a figure in the reporting currency. (3) In addition, all material currencies (which may include the reporting currency) must each be recorded separately (translated into the reporting currency). However if: (a) the reporting frequency is (whether under a rule or under a waiver) quarterly or less than quarterly; or (b) the only material currency is the reporting currency; (3) does not apply. (4) If there are more than three material currencies for this data item, (3) only applies to the three largest in amount. A firm must identify the largest in amount in accordance with the following procedure. (a) For each currency, take the largest of the asset or liability figure as referred to in the definition of material currency. (b) Take the three largest figures from the resulting list of amounts. (5) The date as at which the calculations for the purposes of the definition of material currency are carried out is the last day of the reporting period in question. (6) The reporting currency for this data item is whichever of the following currencies the firm chooses, namely USD (the United States Dollar), EUR (the euro), GBP (sterling), JPY (the Japanese Yen), CHF (the Swiss Franc), CAD (the Canadian Dollar) or SEK (the Swedish Krona). |
|||||
Note 20 |
Note 19 applies, except that paragraphs (3), (4) and (5) do not apply, meaning that material currencies must not be recorded separately. |
|||||
Note 21 |
Any changes to reporting requirements caused by a firm receiving an intra-group liquidity modification (or a variation to one) do not take effect until the first day of the next reporting period applicable under the changed reporting requirements for the data item in question if the firm receives that intra-group liquidity modification or variation part of the way through such a period. If the change is that the firm does not have to report a particular data item or does not have to report it at a particular reporting level, the firm must nevertheless report that item or at that reporting level for any reporting period that has already begun. This paragraph is subject to anything that the intra-group liquidity modification says to the contrary. |
|||||
Note 22 |
Only applicable to firms that hold securitisation positions in the trading book and/ or are the originator or sponsor of securitisations held in the trading book. |
|||||
Note 23 |
Where a firm submits data items for both RAG 7 and RAG 9, the firm must complete Section D1.73 |
|||||
Note 24 |
FSA047, FSA048, FSA050, FSA051, FSA052, FSA053 and FSA054 must be completed by an ILAS BIPRU firm. An ILAS BIPRU firm does not need to complete FSA055. A non-ILAS BIPRU firm must complete FSA055 and does not need to complete FSA047, FSA048, FSA050, FSA051, FSA052, FSA053 and FSA054. |
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Note 25 |
This data item must be reported only in the currencies named in FSA052, so that liabilities in GBP are reported in GBP in rows 1 to 4, those in USD are reported in USD in rows 5 to 8, and those in Euro are reported in Euro in rows 9 to 12. Liabilities in other currencies are not to be reported. |
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Note 26 |
This item only applies to firms that provide advice on retail investment products and P2P agreements67. |
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Note 27 |
[deleted]51 |
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Note 28 |
Only applicable to firms that are collective portfolio management investment firms. |
|||||
Note 29 |
Requirements under COREP and FINREP should be determined with reference to the EU CRR and applicable technical standards. |
2The applicable data items, reporting frequencies and submission deadlines referred to in SUP 16.12.4 R are set out in the table below. Reporting frequencies are calculated from a firm'saccounting reference date, unless indicated otherwise. The due dates are the last day of the periods given in the table below following the relevant reporting frequency period.
Frequency |
Submission deadline |
|||
Annual regulated business revenue up to and including £5 million |
Annual regulated business revenue over £5 million |
|||
Balance Sheet |
Section A RMAR |
Half yearly |
Quarterly |
|
Income Statement |
Section B RMAR |
Half yearly |
Quarterly |
|
Capital Adequacy (note 3)58 |
Section D1 RMAR |
Half yearly |
Quarterly |
|
Professional indemnity insurance (note 2)11 |
Section E RMAR |
Half yearly |
Quarterly 11 11 |
|
Threshold Conditions |
Section F RMAR |
Half yearly |
Half yearly |
|
Training and Competence |
Section G RMAR |
Half yearly |
Half yearly |
|
COBS11 data |
Section H RMAR |
Half yearly |
Half yearly |
|
Supplementary product sales data |
Section I RMAR |
Half yearly11 11 |
Annually |
|
Client money and client assets (note 3)58 |
Section C RMAR |
Half yearly |
Quarterly |
|
Fees and levies |
Section J RMAR |
Annually |
Annually |
|
Note 1 |
When submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 18A. Guidance notes for the completion of the data items is set out in SUP 16 Annex 18B. |
|||
11Note 2 |
This item only applies to firms that may be subject to an FCA80 requirement to hold professional indemnity insurance and are not exempt CAD firms. 68 |
|||
58Note 3 |
This item does not apply to firms who only carry on home finance mediation activities exclusively in relation to second charge regulated mortgage contracts or legacy CCA mortgage contracts (or both)66 and who are not otherwise expected to complete it by virtue of carrying out other regulated activities. |
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Module |
Relevance to Credit Unions |
The Principles for Businesses (PRIN) |
The Principles for Businesses (PRIN) set out 3high-level requirements 3imposed by the FCA3. They provide a general statement of regulatory requirements. The Principles apply to all12credit unions. In applying the Principles to credit unions, the FCA3 will be mindful of proportionality. In practice, the implications are likely to vary according to the size and complexity 3of the credit union. 1212121212 |
Senior Management Arrangements, Systems and Controls (SYSC) |
SYSC 1,3SYSC 4 to 10 and SYSC 213 apply to all credit unions in respect of the carrying on of their regulated activities and unregulated activities in a prudential context. SYSC 23 (Senior managers and certification regime: Introduction and classification), SYSC 24 (Senior managers and certification regime: Allocation of prescribed responsibilities), SYSC 25 (Senior managers and certification regime: Management responsibilities maps and handover procedures and material), SYSC 26 (Senior managers and certification regime: Overall and local responsibility), SYSC 27 (Senior managers and certification regime: Certification regime)7 and SYSC 18 apply to all credit unions in respect of both their regulated activities and their unregulated activities. 33 |
This contains rules and guidance that are directly applicable to a credit union’sSMF managers, certification employees and (from 2017) other conduct rules staff. There is also guidance for credit unions on giving their staff training about COCON. |
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Threshold Conditions (COND) |
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 FCA3 of its powers. 121212 |
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The Fit and Proper test for Employees and Senior Personnel7 (FIT) |
The purpose of FIT is to set out and describe the criteria that a firm should3 consider when assessing the fitness and propriety of a person (1)3 in respect of whom an application is being made for approval to undertake a controlled function under the senior managers7 regime, (2)3 who has already been approved, (3) who is a certification employee or (4) whom a firm is considering appointing to be a certification employee3. It also sets out and describes criteria that the FCA will consider when assessing the fitness and propriety of a candidate for a controlled function position and that it may consider when assessing the continuing fitness and propriety of approved persons.3 12312 |
General Provisions (GEN) |
GEN contains rules and guidance on general matters, including interpreting the Handbook, statutory status disclosure, the FCA's3 logo and insurance against financial penalties. 12 |
Fees manual (FEES) |
This manual sets out the fees applying to credit unions. |
3Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries (MIPRU) |
MIPRU applies to any credit union carrying out insurance distribution activity5 or home finance mediation activity, or using these services. In particular, it sets out requirements for allocation of responsibility for the credit union’sinsurance distribution activity5 (MIPRU 2), for the use of home finance intermediaries (MIPRU 5) and for professional indemnity insurance (MIPRU 3). |
Conduct of Business sourcebook (COBS) |
A credit union which acts as a CTF provider or provides a cash-deposit ISA will need to be aware of the relevant requirements in COBS. COBS 4.6 (Past, simulated past and future performance), COBS 4.7.1 R (Direct offer financial promotions), COBS 4.10 (Systems and controls and approving and communicating financial promotions), COBS 13 (Preparing product information) and COBS 14 (Providing product information to clients) apply with respect to accepting deposits as set out in those provisions, COBS 4.1 and BCOBS. A credit union that communicates with clients, including in a financial promotion, in relation to the promotion of deferred shares and credit union subordinated debt will need to be aware of the requirements of COBS 4.2 (Fair, clear and not misleading communications) and COBS 4.5 (Communicating with retail clients).4 |
ICOBS applies to any credit union carrying on non-investment insurance distribution5 activities, such as arranging or advising on general insurance contracts to be taken out by members. But ICOBS does not apply to a credit union taking out an insurance policy5 for itself, such as a policy5 against default by members on their loans where the credit union is the beneficiary of the policy5, since in this circumstance the credit union would not be acting as an insurance intermediary, but would itself be the customer. Credit unions are reminded that they are subject to the requirements of the appropriate legislation, including the Credit Unions Act 1979, relating to activities a credit union may carry on. |
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3Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) |
MCOB applies to any credit union that engages in any home finance activity. MCOB rules cover advising and selling standards, responsible lending (including affordability assessment), charges, and the fair treatment of customers in payment difficulties. |
Banking: Conduct of Business sourcebook (BCOBS) |
BCOBS sets out rules and guidance for credit unions on how they should conduct their business with their customers. In particular there are rules and guidance relating to communications with banking customers3and financial promotions (BCOBS 2), distance communications (BCOBS 3), information to be communicated to banking customers3(BCOBS 4), post sale requirements (BCOBS 5), and cancellation (BCOBS 6). 3The rules in BCOBS 3.1 that relate to distance contracts may apply 3to a credit union. This is because the Distance Marketing Directive3applies where there is "an organised distance sales or service-provision scheme run by the supplier" (Article 2(a)), i.e. if the credit union routinely sells any of its services by post, telephone, fax or the internet3. |
Supervision manual (SUP) |
The following provisions of SUP are relevant to credit unions: 13SUP 1A13 (The FCA’s 3 approach to supervision), SUP 2 (Information gathering by the FCA or PRA 3 on its own initiative), SUP 3.1 to SUP 3.8 (Auditors), SUP 5 (Skilled persons), SUP 6 (Applications to vary or cancel Part 4A12permission), SUP 7 (Individual requirements), SUP 8 (Waiver and modification of rules), SUP 9 (Individual guidance), 13SUP 10C (FCA senior managers7 regime for approved persons in SMCR firms7), SUP 11 (Controllers and Close links), SUP 15 (Notifications to the FCA or PRA 3) and SUP 16 (Reporting Requirements). Credit unions are reminded that they are subject to the requirements of the Act and SUP 11 on close links, and are bound to notify the FCA3 of changes. It may be unlikely, in practice, that credit unions will develop such relationships. It is possible, however, that a person may acquire close links with a 3credit union3 within the meaning of the Act by reason of holding the prescribed proportion of deferred shares in the credit union. In relation to SUP 16, credit unions are exempted from the requirement to submit annual reports of 3close links. 121212121213312121212 |
CONC contains rules that apply to firms carrying on credit-related regulated activities. PERG 2.7.19IG provides guidance on relevant exemptions. Most credit union lending is therefore outside the scope of CONC. However, subject to the constraints in the Credit Unions Act 1979 or the Credit Unions (Northern Ireland) Order 1985 (as relevant), credit unions may undertake credit-related regulated activities to which CONC does apply if the activity is carried out by way of business. This could include lending under a borrower-lender-supplier agreement, or debt adjusting or debt counselling where the credit union is not the lender. A credit union carrying on such activities should consider whether it requires permission to do so. Further information can be found on the FCA’s website. |
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Decision, Procedure and Penalties manual (DEPP) |
DEPP is relevant to credit unions because it sets out: (1) the FCA's12 decision-making procedure for giving statutory notices. These are warning notices, decision notices and supervisory notices (DEPP 1.2 to DEPP 5); and (2) the FCA's12 policy with respect to the imposition and amount of penalties under the Act (see DEPP 6). 1212 |
Dispute Resolution: Complaints (DISP) |
DISP sets out rules and guidance in relation to treating complainants fairly and the Financial Ombudsman Service. |
Compensation (COMP) |
COMP sets out rules relating to the scheme for compensating consumers when authorised firms are unable, or likely to be unable, to satisfy claims against them.12 |
6General guidance on Benchmark Administration, Contribution and Use (BENCH) |
BENCH provides guidance about which parts of the Handbook are relevant to a firm when carrying out benchmark activities and when using a benchmark. It also provides guidance about the benchmarks regulation. |
The Enforcement Guide (EG) |
The Enforcement Guide (EG) describes the FCA's12 approach to exercising the main enforcement powers given to it by the Act and by other legislation.2 12 |
Financial crime: a guide for firms (FC) |
FC provides guidance on steps that a firm can take to reduce the risk that it might be used to further financial crime. |