Supervisory Committee NI FCA/PRA requirements Úna Mc Devitt, B.Comm. FCA, MScOB FCA/PRA 01st April 2013 the FSA became two separate regulatory authorities: 1. Financial Conduct Authority - The FCA is the registering authority for societies registered under the Industrial and Provident Societies Act 1965 (IPSA65) and the Credit Unions Act 1979. 2. Prudential Regulation Authority - The PRA became responsible for the prudential regulation and supervision of credit unions. Creds is the new regulatory sourcebook for credit unions Some Important Changes 1. 2. 3. 4. 5. 6. Approved Persons Regime - Directors, supervisors, manager, MLRO, credit committee Policies and Procedures – new requirements V1 and V2 Compliance Function - (CREDS 2.2.29 – 2.2.31) Internal audit function (supervisory committee) (CREDS 2.2.40) Quarterly and Annual Returns Others? 1. Approved persons regime Rule 53(9)/65(10) The election or appointment of any individual to a controlled function is subject to the authorisation by the FSA under the Approved Persons Regime What does this involve? Impact on Credit Unions? 2.Policies and procedures V1 – submit on request V2 – must submit 15 policies outlined in Creds 2.2.61 3. Compliance Function CREDS 2.2.29 – 2.2.31 - Compliance Function Depending on the scale and complexity of a credit union, the FCA/PRA recommends that it may be necessary to have a separate compliance function staffed by an appropriate number of competent staff 4. IAF/SC Creds 2.2.10 – credit union should have an Internal Audit Function. This function may be carried out by the supervisory committee or part of/all of this function may be outsourced to an employee or an external body. What does this involve? 5. Quarterly and Annual Returns Accruals Basis Submitting the returns Ensuring CU is compliant 1. Legislation - NI Order 2. CREDS 3. Standard Rules 4. Policies and Procedures What next? What do you need to do next to ensure you can fulfil your role in the credit union? Where to go for assistance?