As the Deputy will appreciate, while I have taken note of the situation as set out in the details supplied by the Deputy, it is not appropriate for me to comment on specific cases. However, I have set out the legislative and regulatory provisions which may be relevant to the issue raised.
Board of directors
Section 53(10) of the Credit Union Act, 1997 (the 1997 Act) sets out a list of persons who are not eligible to become a director of a credit union. This list does not include employees of the organisation referred to and accordingly there is no specific prohibition within the 1997 Act on an employee of that organisation being on the board of a credit union.
Under section 56B of the 1997 Act, the nomination committee of a credit union is, among other things, responsible for identifying candidates for election to the board of directors and ensuring such candidates are fit and proper.
Fitness and Probity regime
The Central Bank’s Fitness and Probity regime for credit unions sets out the minimum standards of Fitness and Probity that apply to individuals carrying out certain functions in credit unions.
A credit union must not permit a person to perform a Controlled Function (CF) role or Pre-Approval Controlled Function (PCF) role unless it is satisfied on reasonable grounds that the person complies with the Fitness and Probity Standards for Credit Unions (the Standards) and has obtained confirmation that the person has agreed to abide by the Standards. The Standards provide that a person performing a CF or PCF is required to be:
- competent and capable;
- honest, ethical and to act with integrity; and
- financially sound.
Credit unions are responsible for ensuring that staff performing CFs or PCFs meet the Standards, both on appointment to such functions and on an on-going basis.
Central Bank approval is required before appointments may be made to PCF positions.
Further information on the Central Bank’s Fitness and Probity regime, as it applies to credit unions, is available on the Central Bank’s website.
Conflicts of interest
Section 69 of the 1997 Act sets out provisions in relation to conflicts of interest including the requirements for officers of a credit union, including the members of its board of directors, to at all times ensure that individually and collectively when acting in that capacity, they act in a manner free from conflicts of interest and for the board of directors to approve and document in writing a policy for identifying, managing and resolving conflicts of interest.
Under section 55A(3) of the 1997 Act, one of the functions of the chair of a credit union is ensuring that conflicts of interest are appropriately managed by the board of directors, and by each of them, in accordance with section 69.
Complaints
The Central Bank welcomes information from members of the public on concerns they have about regulated financial service providers’, including credit unions’, compliance with their legal or regulatory obligations.
However, where a member of a credit union is not happy with the service they have received from their credit union, they are entitled to make a complaint to the credit union directly.
If they are not happy with the response they receive, they can refer their complaint to the Financial Services and Pensions Ombudsman (FSPO) where the complaint comes within the jurisdiction of the FSPO.
