Transitional Provisions and Schedules

Part

Credit Unions New sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 13/11/2024

Rulebook at: 01/09/2012

Transitional Provisions and Schedules

CREDS TP 1

Transitional Provision

(1)

(2)

(3)

(4)

(5)

(6)

Materials to which the transitional provision applies

Transitional Provision

Transitional provisions: dates in force

Handbook provisions: coming into force

CREDS 5.3.1 R

A version 1 credit union need not comply with CREDS 5.3.1 R until midnight on 30 September 2014. CRED 8.3.1 R, as it was in force on 31 December 2011, will apply from the beginning of this transitional period until midnight on 30 September 2012. From midnight on that day until midnight on 30 September 2013, the version 1 credit union must at all times maintain a capital-to-total assets ratio of at least 1%. From midnight on 30 September 2013 until the end of this transitional period at midnight on 30 September 2014, the version 1 credit union must at all times maintain a capital-to-total assets ratio of at least 2%.

From midnight on 30 September 2012 to midnight on 30 September 2014

8 January 2012

CREDS 6.3.2 R

A version 2 credit union need not comply with CREDS 6.3.2 R until midnight on 30 September 2014. From midnight on 30 September 2012 until midnight on 30 September 2013, the version 2 credit union must hold enough liquid assets to ensure that on no two consecutive quarter ends is the level of the credit union's liquid assets below 6% of its total relevant liabilities. From midnight on 30 September 2013, until the end of this transitional period at midnight on 30 September 2014, the version 2 credit union must hold enough liquid assets to ensure that on no two consecutive quarter ends is the level of the credit union's liquid assets below 8% of its total relevant liabilities.

From midnight on 30 September 2012 to midnight on 30 September 2014

8 January 2012

SUP 16.12.7 R

The change in the applicable due date for the submission by a credit union of an annual return under SUP 16.12.5 R from 7 months to 6 months does not apply to an annual return in respect of the financial year ending on or before 31 July 2012.

31 July 2012

8 January 2012

SUP 16 Annex 14 R

SUP 16 Annex 14 R, as it was in force on 31 December 2011, continues to apply to:

(i)quarterly returns for credit unions in respect of the quarter ending on or before 31 December 2011, and(ii)annual returns in respect of the financial year ending on or before 7 January 2012

8 January 2012

CREDS TPs 1, 2, 3 and 4

CREDS TPs 1, 2, 3 and 4 do not apply to Northern Ireland credit unions.

From 31 March 2012 for as long as the relevant TPs remain in force

For Northern Ireland credit unions 31 March 2012

CREDS 2.2.4 R, CREDS 2.2.6 R, CREDS 2.2.8 R, CREDS 3.3.7 R, CREDS 6.2.4 R and CREDS 7.2.1 R

A Northern Ireland credit union need not comply with CREDS 2.2.4 R, CREDS 2.2.6 R, CREDS 2.2.8 R, CREDS 3.3.7 R, CREDS 6.2.4 R and CREDS 7.2.1 R.

From 31 March 2012 until 31 December 2012

For Northern Ireland credit unions 31 March 2012

CREDS 3.2.1 R

A Northern Ireland credit union need not comply with CREDS 3.2.1 R with respect to any types of investment invested in prior to credit unions day provided those types of investment were permitted under the Credit Unions (Northern Ireland) Order 1985 and the Credit Unions (Authorised Investments) Regulations (Northern Ireland) 1995 prior to credit unions day.

From 31 March 2012 until 30 March 2013

For Northern Ireland credit unions 31 March 2012

CREDS 3.2.2 R

A Northern Ireland credit union that is a version 1 credit union need not comply with CREDS 3.2.2 R with respect to any securities invested in, or loans made, in accordance with CREDS 3.2.1 R prior to credit unions day provided those securities or loans mature in accordance with the terms of the relevant agreement as at credit unions day. This transitional provision does not apply to any securities invested in, or loans made, in accordance with CREDS 3.2.1 R prior to credit unions day that satisfy the requirements in CREDS 3.2.2 R.

From 31 March 2012 until the maturity date of the securities invested in or loans made

For Northern Ireland credit unions 31 March 2012

CREDS 3.2.2 R

A Northern Ireland credit union that is a version 1 credit union need not comply with CREDS 3.2.2 R with respect to any securities invested in, or loans made, in accordance with CREDS 3.2.1 R using surplus funds within one year from credit unions day and which in accordance with the terms of the relevant agreement have a maturity of up to three years.

From 31 March 2012 until 30 March 2013

For Northern Ireland credit unions 31 March 2012

CREDS 3.2.3 R

A Northern Ireland credit union that is a version 2 credit union need not comply with CREDS 3.2.3 R with respect to any securities invested in, or loans made, in accordance with CREDS 3.2.1 R prior to credit unions day provided those securities or loans mature in accordance with the terms of the relevant agreement as at credit unions day. This transitional provision does not apply to any securities invested in, or loans made, in accordance with CREDS 3.2.1 R prior to credit unions day that comply with CREDS 3.2.3 R.

From 31 March 2012 until the maturity date of the securities invested in or loans made

For Northern Ireland credit unions 31 March 2012

CREDS 4.4.1 R

A Northern Ireland credit union need not comply with CREDS 4.4.1 R.

From 31 March 2012 until 30 March 2013

For Northern Ireland credit unions 31 March 2012

CREDS 5.3.3 R and CREDS 5.3.5 R

Where the requirements of CREDS 7.5.1 R, CREDS 7.5.2 R and CREDS 7.5.4 E would result in a Northern Ireland credit union having to make higher provision than would have been required prior to credit unions day, that Northern Ireland credit union need not comply with CREDS 5.3.3 R and CREDS 5.3.5 R to the extent that that Northern Ireland credit union may transfer out of its general reserve the amount of provision that is additional to the amount that would have been required prior to credit unions day. If a Northern Ireland credit union takes advantage of this transitional provision it must advise the FSA of the amount transferred by the due date of submission for submission of its next annual return. This provision applies even where the amount standing to the Northern Ireland credit union's general reserve is, or as a result of the transfer would be, less than 10% of total assets.

From 31 March 2012 until the due date for submission by that Northern Ireland credit union of its next annual return

For Northern Ireland credit unions 31 March 2012

CREDS 7.3.1 R

A Northern Ireland credit union that is a version 1 credit union need not comply with CREDS 7.3.1 R with respect to any loan outstanding on credit unions day. That loan must be repaid in accordance with the terms as at credit unions day of the relevant loan agreement. This transitional provision does not apply to any loan outstanding on credit unions day that satisfies the requirements in CREDS 7.3.1 R.

From 31 March 2012 until the day the loan is repaid

For Northern Ireland credit unions 31 March 2012

CREDS 7.3.4 R

A Northern Ireland credit union that is a version 2 credit union need not comply with CREDS 7.3.4 R with respect to any loan outstanding on credit unions day. That loan must be repaid in accordance with the terms as at credit unions day of the relevant loan agreement. This transitional provision does not apply to any loans outstanding on credit unions day that satisfies the requirements in CREDS 7.3.4 R.

From 31 March 2012 until the day the loan is repaid

For Northern Ireland credit unions 31 March 2012

CREDS 7.4.2 R

A Northern Ireland credit union need not comply with CREDS 7.4.2 R with respect to any individual large exposure in existence on credit unions day or the aggregate total of all large exposures in existence on credit unions day. Those large exposures must be repaid in accordance with the terms of the agreement relating to the relevant large exposure as at credit unions day. This transitional provision does not apply to any individual large exposure in existence on credit unions day or the aggregate total of all large exposures in existence on credit unions day that comply with CREDS 7.4.2 R.

From 31 March 2012 until 30 March 2014 or the day the individual large exposure or the aggregate total of all large exposures satisfies the requirements in CREDS 7.4.2 R if earlier

For Northern Ireland credit unions 31 March 2012

CREDS 9.2.1 R and CREDS 9.2.7 R

A Northern Ireland credit union need not comply with the requirement to submit a return under CREDS 9.2.1 R until 30 April 2013, and the relevant reporting period under CREDS 9.2.7 R for this return is from 1 October 2012 to 31 March 2013.

From 31 March 2012 until 30 April 2013

For Northern Ireland credit unions 31 March 2012

SUP 16.12.5 R

A Northern Ireland credit union need not comply with the requirement to submit quarterly returns under SUP 16.12.5 R until 31 January 2013 for the period from 1 October to 31 December 2012.

From 31 March 2012 until 31 January 2013

For Northern Ireland credit unions 31 March 2012

SUP 16.12.5 R

A Northern Ireland credit union need not comply with the requirement to submit an annual return under SUP 16.12.5 R for the year end 30 September 2011.

From 31 March 2012 indefinitely.

For Northern Ireland credit unions 31 March 2012

31/03/2012

CREDS Sch 1

Record keeping requirements

08/01/2012

CREDS Sch 1.1

There are no requirements relating to record keeping in CREDS.

08/01/2012

CREDS Sch 2

Notification requirements

08/01/2012

CREDS Sch 2.1

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant notification requirements.
It is not a complete statement of those requirements and should not be relied on as if it were.

01/09/2012

CREDS Sch 2.2

Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

CREDS 2.2.4 R

CREDS 2.2.52 G

Business plan

Copy of business plan

Upon request

Version 2 credit unions should submit after adoption and / or amendment

As soon as reasonably practical

CREDS 2.2.6 R

CREDS 2.2.60 G

Policies and procedures manual

Copy of policies and procedures manual. Wide range of detail as specified as guidance in CREDS 2

Upon request

Version 2 credit unions should submit after adoption and / or amendment

As soon as reasonably practical

CREDS 3.3.10 R

Financial risk Management Policy

Statement of financial risk management policy

Version 2 credit unions must submit after adoption and / or amendment

As soon as reasonably practicable

CREDS 5.2.3 G

General notification

Any proposed repayment of subordinated debt

As soon as credit union aware

At least one month in advance of proposed repayment

CREDS 6.2.5 R

Liquidity

Liquidity Management Policy Statement

Version 2 credit unions must submit after adoption and/or amendment

As soon as reasonably practical

CREDS 7.2.1 R to CREDS 7.2.2 R

Lending policy

Current lending policy statement

Version 2 credit unions must submit after adoption and/or amendment

As soon as reasonably practical

CREDS 7.4.3 R

Large exposures

The aggregate total of all large exposures will exceed 300% of capital.

Prior to the aggregate total of all large exposures exceeding 300% of capital.

As soon as reasonably practicable.

CREDS 8.2.1 G

Quarterly return

Key financial data

Quarter end

1 month after quarter end

CREDS 8.2.3 G

Annual return

Extended financial data

Financial year end

6 months after financial year end

CREDS 8.2.6 R

Audited accounts

Revenue account and balance sheet

Financial year end

Until submission of annual return

CREDS 9.2.1 R

Complaints report

Analysis of complaints

31 March each year

1 month after period end

01/09/2012

CREDS Sch 3

Fees and other required payments

08/01/2012

CREDS Sch 3.1

There are no requirements for fees or other payments in CREDS.

The table below summarises the fee requirements for credit unions detailed elsewhere.

08/01/2012

CREDS Sch 3.2

Description of fee

Reference

FSA rules relating to authorisation fees

FEES 3

Schedule of authorisation fees payable

FEES 3 Annex 1

FSA fees rules relating to the periodic fee

FEES 4

Schedule of periodic fees payable

FEES 4 Annex 2 R Part 1

FOS funding rules

FEES 5

FSCS funding rules

FEES 6

08/01/2012

CREDS Sch 4

Powers exercised

08/01/2012

CREDS Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in CREDS:

Section 138 (General rule-making power)

Section 149 (Evidential provisions)

Section 156 (General supplementary powers)

Section 213 (The compensation scheme)

Section 214 (General)

Section 226 (Compulsory jurisdiction)

Paragraph 13 (Compulsory jurisdiction) of Schedule 17 (The Ombudsman Scheme)

08/01/2012

CREDS Sch 4.2

The following powers in or under the Act have been exercised by the FSA to give the guidance in CREDS:

Section 157(1) (Guidance).

08/01/2012

CREDS Sch 5

Rights of actions for damages

08/01/2012

CREDS Sch 5.1

The table below sets out the rules in CREDS contravention of which by an authorised person may be actionable under Section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

If a "Yes" appears in the column headed "For private person?", the rule may be actionable by a "private person" under section 150 (or, in certain circumstances, his fiduciary or representative). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under Section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

The column headed "For other person?" indicates whether the rule is actionable by a person other than a private person (or his fiduciary or representative). If so, an indication of the type of person by whom the rule is actionable is given.

08/01/2012

CREDS Sch 5.2

Right of action under section 150

Chapter / Appendix

Section / Annex

Paragraph

For private person?

Removed?

For other person?

All rules in CREDS with the status letter 'E'.

All rules in CREDS that require a credit union to have or maintain financial resources.

All other rules in CREDS.

Yes

08/01/2012

CREDS Sch 6

Rules that can be waived

08/01/2012

CREDS Sch 6.1

The rules made in CREDS can be waived by the FSA under section 148 (Modification or waiver of rules) of the Act.

CREDS includes guidance on rules made in other parts of the Handbook. Reference should be made to those parts of the Handbook concerning waiver of those rules.

08/01/2012