The recent action taken by the PRA in relation to senior individuals in a credit union is notable for a number of reasons. It is the first enforcement action taken by the PRA against individuals involved with a credit union (and the first against a non-approved person). It is also a clear demonstration of the PRA's intention to hold senior individuals to account, particularly where their actions have put the safety and soundness of the firm at risk. The failings included governance and management of conflicts issues, resulting in the PRA banning two individuals in relation to lack of integrity and issuing three censures. The PRA noted that "careful and prudent management" of firms' financial resources is paramount to firms' safety and soundness. We can expect increased levels of enforcement action by both the PRA and the FCA as they seek to utilize the Senior Managers & Certification Regime and hold individuals personally responsible. Senior individuals need to understand their responsibilities and ensure they comply with the regulatory requirements. Failure to do so could result in them facing severe regulatory sanctions.