Dáil Éireann debate -
Tuesday, 17 Dec 2002

Vol. 559 No. 5

Written Answers. - Credit Unions Regulation.

Pat Rabbitte

Question:

113 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to representations being made by credit unions or the League of Credit Unions to have the Registrar of Friendly Societies remain as the independent supervisor and regulator of these institutions; her views on such representations being made; if her attention has further been drawn to the approach adopted by the United Kingdom Financial Services Authority in respect of its assignment of responsibility for the regulation of credit unions in the United Kingdom, specifically the content of its consultation paper CP77 - The Regulation of Credit Unions; and if she will make a statement on the matter. [26743/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I have received representations from the Irish League of Credit Unions and from a small number of individual credit unions concerning the amendments proposed by the Minister for Finance to the Central Bank and Financial Services Authority of Ireland Bill, 2002. I have also met the league in this regard. The amendments being introduced by the Minister for Finance are aimed at making the post of Registrar of Credit Unions, to be established within IFSRA, accountable to the authority through the chief executive. As the chief executive acts as the day to day representative of the authority, it is appropriate that the registrar should be accountable to the chief executive on behalf of the authority. These amendments have been approved by the Government.

I am aware of the United Kingdom consultation paper referred to. I understand that, under the UK regime, the Financial Services Authority, FSA, has direct responsibility for the regulation of all financial service providers, including credit unions, but with the exception of credit unions in Northern Ireland. Unlike our proposed legislation, the UK does not have a separate statutory post of Registrar of Credit Unions. Under the UK regime, which again is different from our approach, credit unions are subject to the same basic regulatory requirements that apply to other lending and deposit-taking institutions. However, I am aware that the FSA has, over time and in consultation with credit unions, tailored some of its rules to meet the particular needs of the credit union movement.

Question No. 114 answered with Question No. 106.