The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to consider the degree to which the firm presents such risks and act on reviewing strategies for mitigating them.
The FCA outlined its areas of focus to be on:
- Operational resilience and third-party providers;
- Outsourcing and data security;
- Risk management of outsourcing;
- Consumer Duty;
- Diversity and inclusion; and
- Environmental, social and governance (ESG) strategy.
The FCA expects credit unions to consider how the letter applies to their business and act as necessary. In particular, credit unions should be able to explain what they did in response to the letter if contacted by a supervisor.