Credit Union Regulation and Reporting
Within the UK, credit unions are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Credit unions are also members of the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service (FOS).
Prudential Regulation Authority and Financial Conduct Authority
From April 2013, 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 which supervise the banks and building societies. Regulation requires Credit Unions to submit regular financial reports and to meet strict requirements and rules. Key members of staff and elected volunteers involved in the running of the Credit Union must be approved by our regulators.
Scotwest's registration number is 213616. Details appear on the Financial Services Register www.fsa.gov.uk/register/home.do
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.
Scotwest also has a Compliance Officer who is in regular contact with the FSA and the Board of Directors and is responsible for ensuring that all necessary policies and procedures are up to date and effective.
Credit unions are required by law to maintain an insurance policy to protect the Credit Union and its members against fraud or theft. Scotwest carries insurance cover in excess of £1.1 million against deliberate and wilful acts of dishonesty by any of its officers. This, in insurance circles, is generally considered to be cover vastly in excess of any potential liability, providing members with reassurance that their savings are not at risk from fraud or theft.
Financial Services Compensation Scheme
Scotwest is covered by the Financial Services Compensation Scheme. This provides a safety net should a bank, building society or credit union collapse.
Important Information about compensation arrangements
We are 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 £85,000. 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 amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 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 about the scheme (including the amounts covered and eligibility to claim) please call us on 0845 634 7634 or ask at your local branch, refer to the FSCS website http://www.fscs.org.uk/ or call 0800 678 1100.
Financial Ombudsman Service
Providing the highest levels of member service is of utmost importance to us and we welcome feedback from our members at any time. In the event that a member is dissatisfied with any aspect of our service, we will endeavour to resolve the complaint as effectively and efficiently as possible.
We have an internal complaints procedure to help resolve any issues or concerns. In the event that our members have a complaint that Scotwest is not able to resolve, members can forward it to the Financial Ombudsman Service, within 6 months of the Credit Union's final response letter.
The Financial Ombudsman Service (FOS) has been set up by law to help settle individual disputes between consumers and financial firms.
The FOS will only look at complaints if the firm has had the opportunity to investigate the complaint first and provide a response.
If you are not happy with a final response given to a complaint or if no final response has been provided within an 8 week period from the date of initial complaint, you are the eligible to contact the Financial Ombudsman Service and request they investigate the matter on your behalf. No charge will be made for this and any decisions made will be binding on the financial institution concerned.
More Information Further information on the Financial Ombudsman Service can be found at: