Dáil Éireann Debate, Thursday - 30 March 2017
143. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 77 of 29 September 2016, if decisions relating to requests for changes to regulations 2016 are appealable to the Irish Financial Services Appeals Tribunal; and if he will make a statement on the matter. [15970/17]
View answer144. Deputy Michael McGrath asked the Minister for Finance his views on whether it is necessary to expand the appealable decisions under the Irish Financial Services Appeals Tribunal to include the decisions relating to Regulations 2016 for credit unions; and if he will make a statement on the matter. [15971/17]
View answerI propose to take Questions Nos. 143 and 144 together.
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
Since 1 August 2013 Part VIIA of the Central Bank Act, 1942 has applied to credit unions. This provides credit unions with the right to appeal certain decisions of the Central Bank to IFSAT. Appealable decisions include:
- certain decisions in the Credit Union Act, 1997 (1997 Act)
- refusal of approval under the Central Bank Reform Act 2010
- findings or orders of an inquiry under the Administrative Sanctions Procedure.
Decisions in relation to requests for changes to Regulations 2016 are not appealable to the Irish Financial Services Appeals Tribunal.
However, under section 84A of the Credit Union Act, 1997 the Central Bank before making regulations is required to consult with:
- The Minister and the Credit Union Advisory Committee,
- Any other body that appears to the Bank to have expertise or knowledge of credit unions generally, and
- Any other body that the Bank considers appropriate to consult in the circumstances.
The Consultation Protocol for Credit Unions, published by the Central Bank in 2012, indicates that the Central Bank will consult on new regulations that will, in the view of the Central Bank, potentially have a significant impact on the business of credit unions. The consultation process for the 2016 Regulations (CP88) took place in 2015 and attracted 117 submissions from representative bodies, individual credit unions, credit union Chapters and from professional bodies, TD s and investment firms. The Central Bank published a Feedback Statement and all submissions received are available on the Central Bank's website.
Since the provision of new regulation making powers to the Central Bank, the Registry of Credit Unions is in a position to review and update the regulations as appropriate on a timely basis and following consultation. The Central Bank is keen to ensure that the regulations remain appropriate for the credit union sector and where credit unions set out a clear path on how they wish to develop, they will consider any amendments to the regulations that may be appropriate.
The Central Bank is in the process of reviewing investment regulations for credit unions considering a number of factors including expanding the permitted classes of investments. In line with the published consultation protocol, once the Central Bank have completed their review and analysis and developed proposals, they will undertake a consultation with credit unions and representative bodies and associations. This will be in the form of a public consultation on draft investment regulations, which will provide a framework for them to seek, receive, analyse and respond to feedback on their proposals prior to finalisation and publication.
