On 27 August 2014, the Prudential Regulation Authority (PRA) announced that its 2014 annual assessment of category 5 credit unions had taken place and it had written to the directors of each credit union with its findings. Credit unions in Great Britain that are members of a peer group that is meeting applicable capital requirements will have received a letter which sets out the key risks and themes that such credit unions should be considering. These include the risks relating to credit unions' provision of new payment services.

What this means for you

Credit unions should pay attention to the key risks and themes set out in the letter, particularly in relation to payment services, governance and strategic planning so as to monitor their financial situation and further improve their businesses. Directors of creditors should also ensure compliance with the single customer view (SCV) requirements in relation to keeping records that are of sufficiently good quality to facilitate a fast pay out and business planning requirements in the Credit Unions sourcebook (CREDS).