Section 48 of the Credit Union Act 1997 provides that a credit union may offer additional services to its members subject to these services appearing to the Central Bank of Ireland to be of mutual benefit to its members. Each credit union is required to apply to the Registrar of Credit Unions for permission to provide the service. However, in cases where a service appears to the Central Bank to generally involve no risk to the assets of the credit union or the funds of its members, the Minister for Finance has powers under Section 48(2) of the Act to make regulations under Section 182, exempting such a service from the requirement to have the separate prior approval of the Registrar.
S.I. No. 838/2007 sets out the Credit Union Act 1997 (Exemption from Additional Services Requirements) (Amendment) Regulations 2007. These regulations were made by the then Minister for Finance under Section 182, following consultations with the Registrar of Credit Unions. They provide that individual credit unions can offer any service whereby a credit union member may arrange to have transferred to or from his or her account third party payments by way of electronic funds transfer or otherwise, without requiring the prior approval of the Registrar of Credit Unions at the Central Bank.
It is not possible to be definitive on whether the services to which the Deputy refers would be third party electronic payments exempted under S.I. 838/2007 in all circumstances. It is a matter for individual credit unions to ensure, in the context of the specific nature of a proposed service, if the proposed service falls within the definition under S.I. No. 838/2007. In addition to the provision of such services being required to meet the requirements under those Regulations, credit unions are also required to meet all legislative and regulatory requirements under the Credit Union Act 1997 including the provisions set out in Section 32(3) of the Act, relating to restrictions on withdrawal of members' savings.
The Registrar of Credit Unions has advised that a circular, which issued to all credit unions on 27 January 2010, states that any credit union considering providing new card services to their members is required to contact the Registry of Credit Unions prior to developing any such services.