Is your Credit Union Ready for the new CREDS rules

Nichola Coles

Director
 

The consultation process is over and from 3rd February 2016 the new rules come into force.

Some of the key changes are aimed at all credit unions and include:

• Minimum capital requirement of 10% for credit unions with over £10 million assets or 15,000 members. The 10% capital is split 8% minimum at all times and a 2% buffer.
• Liquidity must be maintained at 10% at all times
• The general provisioning for bad debts has been removed and replaced by the tiered specific provisioning which is now mandatory, it was previously optional.
• There are some governance rules involving the reporting to members of key regulatory requirements including the Single Customer Review

The results of the consultation process and the key changes are available here.

If you require guidance as to the best course of action please call: Philip Jones or Nichola Coles, Hallidays on 0161 476 8276

www.hallidays.co.uk/services/specialisms/credit-unions