UK Credit Union Authorisation Solutions | Pre-licensing Support | UK Credit Union Authorisation Application Management | Post-licensing Risk and Compliance Solutions for the UK Regulated Credit Unions

We offer a comprehensive set of solutions to help you obtain and maintain a UK Credit Union Authorisation issued by the UK Prudential Regulation Authority (PRA), with conduct supervision by the UK Financial Conduct Authority (FCA), tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• Regulated UK credit unions’ obligations covering risk and compliance management under financial laws and regulations, the applicable financial authorisation requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory authorisation solutions to help you navigate the complexities of the UK credit unions’ authorisation regime in a commercially oriented and goal-focused manner, providing effective support for all stages of the UK credit unions’ authorisation process, including but not limited to the following aspects:

• UK Credit Union Licence Guidance: Advising on a wide range of aspects associated with UK credit union authorisation as it relates to your specific situation
• Pre-authorisation assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-authorisation support:
• Drafting the necessary policies and procedures to help you comply with the UK credit unions’ authorisation conditions and financial markets' regulations
• Developing internal controls to help you meet your obligations under the UK credit unions’ authorisation regime
• UK Credit Union Licence Application Support: Covering the entire authorisation process
• Post-authorisation Support: Covering
• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

Service Coverage

This page is about UK credit union authorisation under the Credit Unions Act 1979 and FSMA 2000. We offer comprehensive support for a wide range of UK credit union authorisation applications tailored to meet the specific needs of the following businesses:

• Consumer Credit Unions
• Commercial Credit Unions
• Auto Credit Unions
• Equipment Credit Unions
• Mortgage Credit Unions
• Micro Credit Unions
• Community Development Financial Institutions (CDFIs)
• Other UK regulated credit union types

You can find more information about our UK credit union authorisation solutions below:

 

UK Credit Unions’ Licensing Preparation

Pre-authorisation Compliance Assurance

Our UK credit union authorisation solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a UK credit union authorisation
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the UK credit unions’ authorisation process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your UK credit union authorisation, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• UK Credit Union Licence Application Plan: We help you establish a roadmap to effectively meet the requirements for your UK credit union authorisation

 

 

UK Credit Union Licence Guidance

Selecting the right compliance model is crucial not only for navigating the authorisation process but also for maintaining ongoing compliance and avoiding potential breaches. Our UK credit unions’ authorisation solution covers:

• Compliance Model Selection: To help you best comply with the UK credit unions’ authorisation regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the authorisation requirements for deposit takes and lenders and other applicable regulated UK credit unions’ obligations, keeping in mind your specific circumstances, available resources and business goals.

 

UK Credit Union Licence and Entering a Regulated Environment

We help businesses transition from an unregulated environment to operating under the UK credit unions’ authorisation regime, helping them meet their obligations as a UK credit union authorisation holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the UK credit unions’ authorisation regime requirements.

Our focus areas for this service include:

• New businesses
• Existing UK credit unions operating in unregulated markets
• Regulated UK credit unions that expand into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to offer regulated deposit-taking or lending services as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with the regulated credit unions’ obligations globally.

 

UK Credit Union Licence and Wholesale Markets

Obtaining a UK credit union authorisation may not be suitable for all, particularly where the retail member-based model does not align with your objectives. Credit unions are primarily authorised to serve retail members under the common bond requirements of the Credit Unions Act 1979. However, in some cases, activity can extend to larger or corporate members, and treasury investments are permitted within PRA rules. We offer risk and compliance management solutions to assist credit unions that:

• Operate beyond basic retail savings and lending to include larger or corporate members within the common bond
• Undertake treasury investment activity within PRA limits
• Require governance, risk, and prudential frameworks aligned to these extended activities

We help these credit unions manage compliance obligations that continue to apply, including capital and liquidity requirements, AML/CTF obligations under the MLRs, PRA prudential reporting, FCA conduct supervision, and oversight of outsourced providers.

 

UK Credit Union Licence Application

We assist with your licence application through ongoing engagement in the UK credit unions’ authorisation process:

• Document Compilation and Review: We compile and review all required supporting documents to support your UK credit union authorisation application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• UK credit unions' Licensing Process and Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the authorisation process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving UK Credit Union Licence Issues

Having competent compliance advisors is crucial when authorisation issues arise. Therefore, our UK credit union authorisation solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for UK Credit Union Licence Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the UK credit unions’ authorisation regime requirements.
• Specific Licence Conditions Compliance: We can help you manage additional conditions imposed on your UK credit union authorisation, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.

• Licensing Issues Handling: We address common authorisation issues encountered during the UK credit unions’ authorisation process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed UK credit unions. Our services include but are not limited to:

Ongoing Risk and Regulatory Compliance

• Regulated UK credit unions’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the UK credit unions’ authorisation regime and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Finance Companies.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• Regulated UK credit unions’ obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• UK credit unions’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for UK credit unions. For more information, visit our Specialised AML/CFT Solutions page for Consumer Lenders.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for UK Credit Union Licence Holders

UK Credit Union licence holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support across various areas. The list below is not exhaustive:

 

Risk and Compliance Obligations for UK Regulated Credit Unions

FCA Authorised CIS managers are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in different areas. The list below is not exhaustive:

UK Credit Union Authorisation and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as per the requirements of the Credit Unions Act 1979  and FCA Handbook SYSC 3 & SYSC 4).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil FCA Authorised CIS managers’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks (as per SYSC 7.1 and PRA Rulebook – SS2/16).
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the FCA fund authorisation requirements (as per FCA SYSC 3.2–3.3 and PRA SS1/18).
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the UK credit union authorisation framework (as per FCA SYSC 6.1 (Compliance Monitoring) and PRA SS1/18).
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet FCA Authorised CIS managers’ obligations for maintaining required financial resources (covered under IFPR).
• Liquidity Management Requirements: We can assist you in developing controls to comply with liquidity management requirements (covered under FUND 3.6.2R for AIFMs and COLL 6.6.3R for UCITS schemes).
• Common Bond Compliance: We help Credit Unions define, document and enforce their common bond criteria, ensuring membership rules comply with statutory limits and PRA expectations (as per the requirements of the Credit Unions Act 1979).

 

UK Credit Union Authorisation and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with FCA fund authorisation requirements for overseeing outsourced services (as per FCA SYSC 8 and PRA SS2/17) , also covering related obligations under AML/CFT compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with FCA authorised CIS managers’ obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with FCA authorised CIS managers’ obligations for senior management and key staff conduct and competence (as per SM&CR under FSMA 2000  and PRA SS1/18).
• Maintaining Operational Resilience: We assist in developing continuity plans to meet FCA authorised CIS managers’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the UK credit union authorisation framework.
• Dividend and Interest Rate Management: We assist Credit Unions in structuring dividend policies and loan interest rate caps, drafting board papers and member communications in line with statutory limits under the Credit Unions Act (as per the requirements of the Credit Unions Act 1979).

 

UK Credit Union Authorisation and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for FCA authorised CIS managers’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading (as per FSMA 2000 and FCA COCON).
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients (as per FCA Principles PRIN 6 & PRIN 7).
• Standards for Conduct and Disclosure: We can help you comply with FCA fund authorisation standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help FCA authorised CIS managers’ obligations comply with product suitability and governance obligations, including risk management and governance arrangements across the product life cycle.
• Protection of Client Assets: We can help you comply with FCA fund authorisation obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.

 

UK Credit Union Authorisation and Resource Management Obligations

We can help you comply with the following requirements of the UK credit union authorisation framework:

• Adequacy of Resources: Covering financial, technological, human and other resources (as per PRA SS1/18 and FCA SYSC 4.1).
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:
• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the authorisation regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement (as per FCA TC & SM&CR).
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and compliance regulations.
• Competence and Accreditations of Advisors and Representatives: We can advise you on certifications and continuing professional development (CPD) requirements for compliance professionals and senior management.
• Representative Vetting: We can help establish a framework for assessing the competence and suitability of advisors and representatives before appointment.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on authorisation obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.

 

UK Credit Union Authorisation and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • UK Credit Unions’ Licensing Obligations
  • UK Credit Unions’ AML/CFT Obligations (SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • FCA Authorised CIS managers’ obligations under the financial markets' conduct-related regulations 
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the UK credit union authorisation framework, applicable operational standards, and more.

 

 

Related Services

We assist in obtaining UK credit union authorisation equivalents in the following jurisdictions:

• Australia: For more information on the Australian equivalent of a UK credit union authorisation, the ADI licence, you can visit our ADI Licence page.
• New Zealand: For more information on the New Zealand equivalent of a UK credit union authorisation, the deposit takers licence, you can visit our Deposit Takers Licence page.
• United States: For more information on the United States equivalent of a UK credit union authorisation, the Federal Savings and Loan Association license, you can visit our Federal Savings and Loan Association Licence page.
• Singapore: For more information on the Singaporean equivalent of a UK credit union authorisation, the finance company licence, you can visit our Singapore Finance Company Licence page.
• Other Jurisdictions: We also offer licensing solutions for credit union and finance company licensing in prominent financial centres and offshore tax havens, including but not limited to: