Credit Union Regulation

Since the 1st April 2013, the Financial Services Authority no longer exists and the Financial Services Act 2012 divides the responsibilities of the FSA between two new bodies:

• Financial Conduct Authority (FCA) – an independent regulator responsible for all regulation of most firms and only conduct regulation for those regulated by the PRA.
• Prudential Regulation Authority (PRA) – subsidiary of Bank of England, the PRA is responsible for prudential regulation of deposit-takers, including credit unions. It is concerned principally with financial stability.

The two regulators are separate and each manage a separate rulebook.  However, all firms regulated by the PRA – including credit unions – will be “dual-regulated” which means that credit unions will be overseen by the PRA for matters relating to financial soundness and management and the FCA for matters relating to conduct in relation to consumers and competition. 

Enforcing compliance means ensuring that the credit union adheres to the regulations stated.  Further information about credit unions and the FSA can be found at:

                      FCA Website                                   PRA Website