1
Application and Definitions
1.1
Unless otherwise stated, this Part applies to a credit union.
- 03/02/2016
1.2
In this Part, the following definitions shall apply:
means:
- (1) an additional activity carried out or additional service provided by a credit union as described in 3.3, 3.5, Chapter 4, 6.4 or Chapter 7;
- (2) entering into a conditional sale agreement, as the seller, with a member of the credit union pursuant to section 11E of the Credit Unions Act 1979;
- (3) entering into a hire purchase agreement, as the person from whom goods are bailed or (in Scotland) hired, with a member of the credit union pursuant to section 11E of the Credit Unions Act 1979;
- (4) providing credit cards; or
- (5) lending to corporate members.
means authorisation as an authorised person for the purposes of FSMA.
means shares in the credit union, other than deferred shares:
- (a) in relation to a Great Britain credit union, the withdrawal of which is not permitted by section 7(5) of the Credit Unions Act 1979; or
- (b) in relation to a Great Britain credit union, the withdrawal of which is not permitted by the terms of a loan made to a member; or
- (c) in relation to a Northern Ireland credit union the withdrawal of which is not permitted by article 23(4) of the Credit Unions (Northern Ireland) Order 1985; or
- (d) the withdrawal of which is not permitted without seeking and obtaining the permission of the governing body of the credit union.
In relation to a Great Britain credit union, paragraph (d) of this definition is relevant only where the credit union made a loan to the holder of the shares before the Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 came into force.
refers to a loan by a credit union to a member of that credit union that is more than three months in arrears.
means the total closing balances of all loans received by a credit union (excluding any subordinated loans) and overdrafts and committed lines of credit available to a credit union.
has the meaning given in Chapter 8.
means the function of having responsibility, under the immediate authority of the governing body, alone or jointly with others, for carrying out the management of the conduct of the whole of the business of a credit union.
has the meaning given in section 31(1) of the Credit Unions Act 1979.
means a senior sterling-denominated bond issued by a company and traded on a regulated market in the UK that is not a bond issued by a credit institution or a bond issued by a holding company of a credit institution.
has the meaning given:
- (1) in relation to a Great Britain credit union, in section 5A of the Credit Unions Act 1979; or
- (2) in relation to a Northern Ireland credit union, in article 14A of the Credit Unions (Northern Ireland) Order 1985.
means:
- (1) an undertaking;
- (2) a qualifying money market fund;
- (3) the government of the United Kingdom, together with all the public bodies, local authorities or nationalised industries; or
- (4) a supranational institution,
in which a credit union has made investments or against whom it has rights whether under a contract entered into by the credit union or otherwise. Where a counterparty is an undertaking, the definition also includes a group undertaking.
has the meaning given in Article 3(1)(a) of Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies.
has the meaning given in Article 3(1)(b) Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies.
means a child trust fund as defined in section 1(2) of the Child Trust Funds Act 2004.
means a discrete fact or individual piece of information relating to a particular field within a data item.
means one or more related data elements that are grouped together into a prescribed format and required to be submitted by a firm.
has the meaning given by section 31A of the Credit Unions Act 1979.
has the meaning given by section 5(2) of the Regulated Activities Order.
means the holder or, in the case of a joint account, each of the holders, of a deposit.
means a credit union which has average total gross assets of £250 million or less, determined on the basis of the annual average amount of gross assets calculated across a rolling period of five years or, if it has been in existence for less than five years, across the period during which it has existed (in each case, calculated with reference to the credit union’s annual accounting reference date).
means the aggregate net liability of a person to a credit union.
means the maximum amount of compensation payable by the FSCS in relation to an eligible deposit as set out in Depositor Protection 4, excluding any compensation sum payable for a temporary high balance.
means a credit union within the scope of the Co-operative and Community Benefit Societies Act 2014.
has the meaning given in section 1161(5) of the Companies Act 2006.
has the meaning given in section 31(1) of the Credit Unions Act 1979.
has the meaning given in section 1159(1) of the Companies Act 2006.
a deposit received by a credit union from an individual under the age at which an individual may lawfully become a member of that credit union.
means an aggregate net liability of a person to a credit union that meets both the following criteria:
- (1) it is at least £7,500; and
- (2) it is at least 10% of the value of the credit union’s capital.
means, in relation to a security or loan, the last or only date on which it will be repayable by or under its terms.
means a person that is a member within the scope of section 5(2) of the Credit Unions Act 1979 and article 14(2) Credit Unions (Northern Ireland) Order 1985.
means the outstanding balance of any loan made to a borrower and any interest or charges on that loan that are due but unpaid, less any attached shares held by the borrower.
means shares that are not deferred shares.
means a senior sterling-denominated bond issued by a credit institution that has permission under Part 4A of FSMA to carry on the regulated activity of accepting deposits (excluding a UK bank) and traded on a regulated market in the UK.
means a credit union registered under the Credit Unions (Northern Ireland) Order 1985.
a qualifying disclosure, as defined in section 43B of the Employment Rights Act 1996, made by a worker in accordance with any of sections 43C to 43H of the Employment Rights Act 1996.
has the meaning given in the Glossary to the FCA Handbook.
has the meaning given in article 61(3)(a) of the Regulated Activities Order, but excludes a re-mortgage contract with no change to the principal sum outstanding by the same credit union that was a party to the original mortgage contract.
means any of the following:
- (1) a director or manager of the credit union;
- (2) personnel (whether remunerated or not) of the credit union; as well as any other natural person whose services are placed at the disposal and under the control of the credit union and who is involved in the provision by the credit union of regulated activities; or
- (3) a natural person who is directly involved in the provision of services to the credit union under an outsourcing arrangement, for the purpose of the provision by the credit union of regulated activities.
means a concern held by any person in relation to the activities of a firm, including:
- (1) anything that would be the subject of a protected disclosure, including a breach of any rule;
- (2) a failure to comply with the firm’s policy and procedures; and
- (3) behaviour that has or is likely to have an adverse effect on the firm’s reputation or financial well-being.
means a loan that is secured by a readily-realisable asset whose market value is ascertainable and verifiable.
means any amount received and not repaid by a credit union by way of subscription, including partial subscription, for a share in a credit union.
has the meaning given in Depositor Protection 1.4.
means a sterling-denominated bond issued by a supranational institution.
means:
- (1) African Development Bank;
- (2) Asian Development Bank;
- (3) Bank for International Settlements;
- (4) Caribbean Development Bank;
- (5) Council of Europe Development Bank;
- (6) Development Bank of Latin America;
- (7) European Company for the Financing of Railroad Rolling Stock;
- (8) European Bank for Reconstruction and Development;
- (9) European Central Bank;
- (10) European Investment Bank;
- (11) European Investment Fund;
- (12) European Union;
- (13) Inter-American Development Bank;
- (14) International Bank for Reconstruction and Development;
- (15) International Finance Corporation;
- (16) International Finance Facility for Immunisation;
- (17) International Monetary Fund;
- (18) Islamic Development Bank; or
- (19) Nordic Investment Bank.
means funds not immediately required for a credit union’s acceptance of deposits, lending and ancillary purposes.
means the sum of all assets that appear on the balance sheet of the relevant monthly financial statement.
means the balance of a credit union’s non-deferred shares that appears in the most recent annual return to have been reported to the PRA under 7.1 Regulatory Reporting.
means the sum of:
- (a) unattached shares and deposits by natural persons too young to be members; and
- (b) liabilities, other than liabilities for shares, with an original or remaining maturity of less than three months.
means an account at a credit union that is regularly used by a member of that credit union for the receipt of funds from, and disbursement of funds to, third parties.
means shares that are not attached shares or deferred shares.
means a senior sterling-denominated bond issued by a UK bank and traded on a regulated market in the UK.
means a loan that is not a secured loan.
has the meaning as defined by section 230(3) of the Employment Rights Act 1996 and as extended under section 43K of the Employment Rights Act 1996.
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1.3
A reference in this Part to a provision of the Employment Rights Act 1996 includes a reference to the corresponding provision of the Employment Rights (Northern Ireland) Order 1996.
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