PRA has confirmed changes to the Credit Unions part of its Rulebook and a new supervisory statement. The changes follow consultation and relate to:
- allowing credit unions greater flexibility when investing surplus funds;
- higher requirements and expectations for credit unions that post greater risk to PRA’s safety and soundness objective; and
- clarifying PRA’s expectations of the sector.
The changes take effect from 29 August. These were consulted on before the Royal Assent for the Financial Services and Markets Act 2023, the changes made by which are not yet in force.