On 24 June 2015, the PRA and the FCA issued a joint consultation paper on reforming the Credit Unions sourcebook (CREDS).

The PRA proposes to delete CREDS in its entirety and to replace it with a new credit unions rulebook to deal with matters affecting the financial safety and soundness of credit unions, whilst the FCA proposes to retain those parts of CREDS relating to its statutory responsibilities and matters which concern the ways in which credit unions conduct business.

The most significant differences between the rules in CREDS and the new PRA credit union rulebook concern the limit on shares and deposits and the framework for additional activities. Details of these are set out in section two of the consultation paper.

Currently, the FCA is not proposing to make significant changes to its version of CREDS and its changes are mainly consequential to those being made by the PRA.

The consultation paper can be read in full here.  The consultation closes on 30 September 2015.