Dáil Éireann Debate, Tuesday - 20 March 2018
102. Deputy Catherine Murphy asked the Minister for Finance if persons that entered draws in credit unions suspected of not being run in a transparent way will be refunded their entry fees in view of a Central Bank report on members' car draws in credit unions (details supplied); and if he will make a statement on the matter. [12601/18]
Amharc ar fhreagraI can advise the Deputy that the board of each credit union is responsible for ensuring compliance with all legislative and regulatory requirements and guidance for the effective governance of the credit union. In particular there is an onus on the boards of credit unions operating prize draws to ensure that the governance, operation and recording of financial transactions are in line with legislation, regulations, and guidance and are fully transparent to members.
Where any instances of loss to a member related to a draw arise, the Central Bank would expect the Board of the credit union to undertake a full review of the circumstances, to compensate its members as appropriate, to update its systems and controls and to provide full details on the issue and the remedial action taken to its members.
The Central Bank issued guidance to credit unions in February 2017, setting out the Central Bank’s expectation that, “where a credit union is operating a draw for its members, it will be done in a clear and transparent manner with appropriate systems and controls in place”. The guidance advises that credit unions should ensure:
- Members are only included in draws where they have given their written consent for inclusion
- Clear terms and conditions are documented and provided to participating members. Such terms and conditions would be expected to include items such as:
- eligibility criteria for entry into the draw and the process for entering the draw (it should be clear whether or not volunteers and/or staff are eligible to enter);
- how the draw fee will be collected;
- information on when and where draws will take place;
- how winners will be advised of their win;
- how any surplus funds arising from the draw will be dealt with;
- how members participating in the draw will be recorded; and
- how the draw will be accounted for and audited (e.g. by internal and external audit).
