PRA consults on proposed reforms to credit union investment rules

The Prudential Regulation Authority (PRA) has published consultation paper CP13/25 proposing amendments to the credit union investment rules to permit investments in credit union service organisations (CUSOs). The proposals would result in changes to the credit unions part of the PRA Rulebook and to supervisory statement (SS) 2/23.

The key proposals are:

• To amend the PRA Rulebook to clarify that credit unions are permitted to invest in CUSOs.
• To introduce a new chapter in SS2/23 to outline the PRA's expectations for credit unions investing in or using CUSOs to manage associated prudential risks.
• To make consequential amendments to chapter 17 of SS2/23 following the PRA's proposed deletion of SS20/15 (on supervising building societies treasury and lending activities).

The deadline for responses is 24 October.

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