GOVERNANCE

As a financial cooperative, LMCU is based on the principles of the International Cooperative Alliance that are also adopted by World Council of Credit Unions. Our members are our owners and we recognise that the strength of our credit union depends on the strength and quality of the relationship we have with our members. This is why the credit union has voluntarily adopted the Governance Code that was launched by ABCUL in November 2008. It shows the transparency of managing the affairs of the credit union and at the same time helps strengthen both internal structures and accountability to the members and stakeholders of Southwark Credit Union. London Mutual Credit Union's Board is responsible for good governance in the credit union and adheres to the principles of good governance outlined in the Governance Code for Credit Unions.

CODE OF GOVERNANCE

The code of governance requires that the credit union reaches compliance in elements of:

  1. COMPLIANCE AND CONTINUITY - The credit union strives to ensure compliance and transparency with the requirements of the law, the regulator and members of the credit union and takes steps to safeguard the future of the credit union.
  2. INTEGRITY & ACCOUNTABILITY - The credit union strives to maintain the integrity of elected individuals, staff and the credit union as a financial provider and an ethical co-operative business and in doing so aims to maintain accountability to all of its stakeholders.
  3. SKILLS AND ABILITY - The Board and Senior Management must ensure that all those involved in the operation of the credit union will have the opportunity to develop the skills and knowledge necessary to operate the credit union successfully.
  4. STRUCTURE AND THE PRINCIPLES OF GOOD GOVERNANCE -The credit union must develop and maintain an accessible, clear and co-operative structure.

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THE COMMON BOND & MEMBERSHIP

London Mutual Credit Union is London Mutual Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN 213248) & is:

  • Operating under the Industrial and Provident Society
  • A Member of the Association of British Credit Unions Ltd
  • Member of the Financial Services Compensation Scheme
  • A Member of the Financial Ombudsman Service

London Mutual Credit Union has a common bond of "Residing in or being employed in the London Boroughs of Southwark, Lambeth, Camden or Westminster and has 20,918 members as at September 2014.

Balance Sheet highlights:

  2013 2014 2015
Membership 18,944 20,918 23,679
Junior Savers 1,761 1,707 2,058
Savings £10,001,435 £12,161,268 £17,810,154
Loans £10,267,932 £11,992,409 £12,390,715
Assets £15,563,838 £18,940,543 £21,218,111

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CAPITAL AND LIQUIDITY RATIOS - 30TH SEPTEMBER 2014

  Actual Regulatory Requirement
Liquidity Ratio 118.8% 10%
Capital Ratio 13.3% 8%

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LONDON MUTUAL- CODE OF GOVERNANCE - TOTAL SCORE AS AT FEBRUARY 2015

Principles of the Code Required Standards Achieved % Gold Standards Achieved %
Compliance & Continuity 8 from 8 100 2.75 from 3 91.7
Integrity & Accountability 7.5 from 8 93.8 5 from 5 100
Skills & Ability 6 from 6 100 2 from 3 66.7
Structure and Good Governance 8 from 8 100 3.5 from 4 87.5
TOTALS 29.5 from 30 98.3 13.25 from 15 88.33

Providing ethical financial services since 1982

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