For Safe Savings and Affordable Loans
Prudential Regulation Authority and Financial Conduct Authority
Credit Unions in the UK are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. These are the same regulators that supervise banks and building societies. Regulation requires credit unions to submit regular financial reports and meet strict requirements and rules.
A professionally qualified external auditor carries out an annual inspection of the credit union's business and reports to the membership at the Annual General Meeting each year.
Credit unions are required by law to maintain an insurance policy to protect the credit union and its members against fraud or theft. NEWCU carries insurance cover against wilful acts of dishonesty by any of its officers.
Financial Services Compensation Scheme
NEWCU is covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a credit union is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £75,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum that could be claimed is £75,000 each (making a total of £150,000). The £75,000 limit relates to the combined amount in all eligible depositor's accounts with the credit union, including their share of any joint account, and not to each separate account.
For further information, including the amounts covered and eligibity to claim, please call either NEWCU on 01925 492688 or refer to the FSCS on 0800 678 1100 or their website http://www.fscs.org.uk.