Thursday, 24 September 2020

Questions (102)

Mick Barry

Question:

102. Deputy Mick Barry asked the Minister for Finance if he will intervene with the Central Bank in relation to credit union regulations that require a majority of members to sign up to a death benefit scheme in order for the scheme to be continued by a given credit union in order that these regulations are amended to allow for the schemes to be continued for those that wish to avail of it; and if he will make a statement on the matter. [26116/20]

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Written answers (Question to Finance)

The Central Bank have informed me that there is no Central Bank regulation relating to Death Benefit Insurance.

The Central Bank understand that any requirements mandating a credit union to have a percentage of its members sign up to a Death Benefit Insurance scheme to allow such a scheme to be offered to members, may be a particular feature of the product offering of the insurer.

It is a matter for each individual credit union to determine the types of services they offer to their members taking account of all relevant legal and regulatory requirements and guidance. Details including terms and conditions of such services should be provided by the credit union in writing to its members. The services provided by credit unions may also be informed by the business strategies and policies of the particular credit union.

As Minister for Finance, I recognise the important role of credit unions as a volunteer co-operative movement in Ireland and the Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall; and the Government is determined to continue to support a strengthened and growing credit union movement. However, I have no role in the provision of Death Benefit Insurance by the credit unions.