On 6 October 2023, the Prudential Regulation Authority (PRA) published letters proving feedback from the regulator’s annual assessment of credit unions.
Among other things the letter reminds credit unions that the PRA published Policy Statement 11/23 ‘Credit Unions: Changes to the regulatory regime’ with final policy for amending the credit unions part of the PRA Rulebook and a new Supervisory Statement 2/23 ‘Supervising credit unions’ (SS2/23). The PRA reminds credit unions that SS2/23 sets higher requirements and expectations for those credit unions which the PRA assesses as posing a greater risk it its safety and soundness objective. Credit unions are reminded of the sections in SS2/23 which cover investments, capital, liquidity management, governance, risk management, operational risk, and internal audit. The PRA states that all credit union boards should by 31 October 2023 review SS2/23, considering their business model, membership, and any additional activities, and agree a plan of how they will ensure ongoing compliance with the outlined requirements and expectations. This plan should be agreed at board level and evidenced appropriately.