Regulators float lighter rules for UK credit unions
The Prudential Regulation Authority and Financial Conduct Authority published a discussion paper on 3 Nov 2026 proposing reforms to credit union regulation. Credit unions in the UK have more than two million members. The proposals would remove some internal audit and regulatory document requirements for smaller credit unions, and introduce a risk-based framework with more flexible capital requirements for larger, more complex ones. Regulators are also seeking views on applying a simplified version of the Basel framework to large credit unions with specific exposures. The paper asks whether changes to FCA fees could reduce costs and support sustainable growth. The paper is a consultation document and no decisions have been announced.
Key facts
- The paper is a consultation document, and the source reports no final decisions on the proposals.
- Regulators are inviting views on the proposals, which cover capital, audit and fee questions.
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Why it matters
Changes could alter compliance costs and capital rules for the UK credit union sector, which has more than two million members.
What changed
First published from Bank of England