Asked by: Lord Hunt of Wirral (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the effects of the regulatory policies of the Financial Conduct Authority and the Financial Ombudsman Service on the viability of the credit union sector.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has made clear its strong support for the credit union sector, recognising the value that credit unions bring to their members in local communities across the country in providing products and affordable credit. We have also committed to doubling the mutuals and cooperatives sector.
The Chancellor announced new measures to support growth of the credit union and mutual sector in her first Mansion House speech on 14 November. This included asking the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) to produce a report on the mutuals landscape by the end of 2025. This report will aid understanding of the current landscape of the sector and how to best support the sector’s specific needs.
The Treasury is responsible for setting the overall legal framework for financial services regulation. The FCA is responsible for regulating and supervising the financial services industry and the Financial Ombudsman Service (FOS) investigates individual complaints against firms. The FOS does not have a role in setting regulatory policy. The FCA and FOS are independent non-governmental bodies and the independence of both is vital to their roles.