The Minister for Finance, Mr Michael Noonan TD, has today published the implementation plan for outstanding sections of the Credit Union and Co-operation with Overseas Regulators Act 2012. This will allow time for credit unions to prepare for the changes that are required by the Act. Publication of this plan coincides with the publication today by the Central Bank of a handbook to assist credit unions by bringing a number of legal and regulatory requirements and guidance that apply to credit unions together in one place.
A number of sections, mainly in relation to restructuring and stabilisation, have already commenced since 1 January 2013. The implementation plan provides for the remaining sections to be commenced broadly over four dates including prudential measures beginning commencement in quarter 2 2014. Commencement dates are as follows:
- 1 August 2013 – Commencement of various standalone sections, including the measures allowing credit unions the right to appeal certain decisions of the Central Bank to IFSAT, administrative sanctions, and the disapplication of certain banking legislation to credit unions.
- 1 October 2013 – Commencement of sections mainly in relation to new governance and prudential requirements for credit unions. These include sections 15 to 27 which relate to the roles and responsibilities of those in key positions in credit unions including the board of directors, chair, manager, board committees, credit officer and credit control officer and board oversight committee. These also include requirements relating to risk management, compliance and internal audit.
- 3 March 2014 – Commencement of parts of sections 15, 24 and 27 which were not commenced in October 2013 and include reduction in board numbers from 15 to 11, the submission by a credit union of an annual compliance statement to the Bank and procedural provisions of the Board Oversight Committee. Commencing these measures in March 2014 will allow sufficient time for credit unions to implement these measures.
- Q2 2014 – Commencement of other prudential measures will begin in Q2 2014, allowing for meaningful consultation between the Central Bank and credit unions prior to implementation. These measures will amend existing provisions in relation to savings,