The FSA has published issue 8 of its Credit Unions newsletter. In the newsletter the FSA looks at:
- Management information (MI). This section includes a brief discussion of the FSA's key findings report entitled Management Information project.
- Changes ahead. This section sets out the areas that the Government plans to improve. These areas include:
- Common bonds.
- The payment of interest rather than dividends.
- Extending potential membership beyond just individuals. If these changes go ahead then the FSA will need to make changes to its Credit Unions sourcebook.
- The Growth Fund. Under phase one of the Government managed Growth Fund (GF1) the FSA introduced “modification by consent” so that credit unions would not breach its rules by having too little capital. Phase two of this scheme (GF2) is now underway, and the FSA has been looking at how it can change or modify its rules to make things clearer for those participating. It will also help it see the true financial position of credit unions. The FSA will introduce a new modification for credit unions taking part in GF2, which can be used from 1 October 2008. Until then all the FSA’s current rules apply (including the modification for credit unions participating in GF1, where they have chosen to use it).
- Credit committees. In this section the FSA states that the credit unions should check the status of the members of their credit committee.
View Credit Unions newsletter - Issue 8, (PDF 27.8KB), 7 August 2008