On 8 March 2022, the FCA published a portfolio letter regarding its strategy for credit unions.

In the letter the FCA explains that it has recently reviewed the key risks of harm that are present for credit unions, their members and the markets in which they operate. In the letter the FCA:

  • Provide an updated view of the key risks of harm it believes are present for the credit unions sector.
  • Outline an overview of its strategy and programme of work to ensure credit unions are meeting its expectations, and harms are being appropriately remedied.

The FCA expects credit unions to review their strategies for mitigating the risks of harm outlined in the letter. Where the FCA contacts a credit union it will expect its senior managers to be able to demonstrate that they are taking reasonable steps to mitigate these risks.