• Doing business with the FSA
  • Being regulated
    • Notifications and applications
      • Applying for a waiver
        • Waiver by Consent

We have made a modification available to those credit unions that have contracts to take part in the ‘Department of Work and Pensions’ Growth Fund 2 (GF2) Initiative. The Growth Fund is part of the Government’s financial inclusion agenda; it aims to provide support and sustainability to third sector (not-for-profit) lenders such as credit unions.

What is the purpose of the modification?

This modification ensures any monies received in respect of the Growth Fund are excluded from the total asset, liquidity and provisioning calculations. Additionally, it requires firms to report separately in relation to their Growth Fund and non-Growth Fund related activities.

Growth Fund Annual Return

What credit unions will this apply to?

This modification will apply to credit union firms that have contracts to take part in the Department of Work and Pensions GF2 Initiative, whether as a main contractor or a sub-contractor.

What does this mean for credit unions?

The modification ensures that the rules for GF2 credit unions reflect the operation of the Growth Fund. It also helps prevent the risks to members being increased by Growth Fund monies obscuring a credit union’s true financial position.

Two versions of the direction are available dependent on whether a credit union is Version 1 or Version 2

Version 1 Direction [PDF]
Version 2 Direction [PDF]

The modification by consent for 8.3.1 will apply to Version 1 Credit Unions and Modification by Consent to 8.4.1 will apply to Version 2 Credit Unions.

The modification is valid until 30 September 2011.

How can firms make use of this modification?

If you want to take advantage of the modification by consent described here, you should email to centralwaiversteam@fsa.gov.uk

Or alternatively write to
Central Waivers Team
The Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS

We will then write to you to confirm that the modification has been granted, and we will publish each modification direction we grant on our website.

Waivers Update

• Credit Unions who have consented to the modification as 28 November 2008