PRA consults on rule changes allowing Credit Unions to invest in service organisations

The PRA has published a consultation paper setting out proposals for changes to make it clear that Credit Unions can invest in Credit Union Service Organisations, subject to guard rails.

In support of the Government’s commitment to unlocking the full potential of mutuals, the PRA has recognised the value of CUSOs to Credit Unions, for example in terms of providing economies of scale and reduced costs, and access to new/ better services that would otherwise not be open to Credit Unions due to cost. However the current rules framework may prevent Credit Unions from having interests in CUSOs, depending on how holdings are structured.

By making changes to the Credit Unions Part of the PRA Rulebook and to SS2/23, the PRA hopes to clarify the position for Credit Unions, and thereby help to stimulate growth in the mutuals sector.

The consultation is open for responses until 24 October 2025.