Supervisory Committee NI FCA/PRA requirements Úna Mc Devitt, B.Comm. FCA, MScOB

 01 st 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 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 FCA/PRA

1.Approved Persons Regime - Directors, supervisors, manager, MLRO, credit committee 2.Policies and Procedures – new requirements V1 and V2 3.Compliance Function - (CREDS – ) 4.Internal audit function (supervisory committee) (CREDS ) 5.Quarterly and Annual Returns 6.Others? Some Important Changes

 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? 1. Approved persons regime

 V1 – submit on request  V2 – must submit  15 policies outlined in Creds Policies and procedures

 CREDS – 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 3. Compliance Function

 Creds – 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? 4. IAF/SC

 Accruals Basis  Submitting the returns 5. Quarterly and Annual Returns

1.Legislation - NI Order 2.CREDS 3.Standard Rules 4.Policies and Procedures Ensuring CU is compliant

 What do you need to do next to ensure you can fulfil your role in the credit union?  Where to go for assistance? What next?