Dáil Éireann Debate, Thursday - 29 September 2016
77. Deputy Michael McGrath asked the Minister for Finance if, in view of the fact that extensive powers were devolved to the registrar in the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016, he will consider providing for an appeals mechanism; and if he will make a statement on the matter. [27881/16]
Amharc ar fhreagraMy 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, under section 14 of the Credit Union and Co-operation with Overseas Regulators Act 2012, 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 the Irish Financial Services Appeals Tribunal (IFSAT). Appealable decisions include:
- certain decisions in the Credit Union Act, 1997 (1997 Act);
- refusal of approval under the Central Bank Reform Act 2010; and
- findings or orders of an inquiry under the Administrative Sanctions Procedure.
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.
Under section 32M of the Central Bank, 1942 the Central Bank is required at least every 4 years to make arrangements for a peer review of the Central Bank's performance of its regulatory functions. A review of the Central Bank performance of its regulatory functions in relation to credit unions was carried out in July 2015 by the International Credit Union Regulators' Network (ICURN).
