S.I. No. 223/2004 - Credit Union Act 1997 (Exemption From Additional Services Requirements) Regulations 2004

I, CHARLIE McCREEVY, Minister for Finance in exercise of the powers conferred on me by section 182 (1)(h) of the Credit Union Act 1997 (No. 15 of 1997) as amended by Item 121 of Part 24 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003 (No. 12 of 2003), and after consulting the Bank, the Advisory Committee referred to in section 180 of the Credit Union Act 1997 , as amended by Item 119 of Part 24 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003 , and the Irish League of Credit Unions, hereby make the following regulations:

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• (2) In relation to a service so listed this Regulation does not apply unless the appropriate conditions specified in the Schedule to these Regulations are fulfilled.

SCHEDULE Telephone, internet and fax access to the credit union by the member.

1. (1) Access by telephone,

• (a) that is to say any service by which the credit union member may by telephone using a unique number or password allocated by the credit union to the member,

• (i) obtain information on his or her credit union accounts, including the balance of the member's share, deposit and loan accounts with that credit union,

• (ii) transfer funds between accounts,

• (iii) request a withdrawal from share and deposit accounts,

• (iv) apply for a loan and calculate loan repayments,

• (b) conditions to be fulfilled—

• (i) the relevant registration form in relation to such access must be completed by the parties concerned prior to the commencement of such a service,

• (ii) loan approval is subject to the relevant loan application forms and other necessary documentation in relation to such transactions being completed by the parties concerned.

• (2) Access by internet,

• (a) that is to say any service by which a credit union member may by internet using a unique number or password allocated by the credit union to the member,

• (i) obtain information on his or her credit union accounts, including the balance of the member's share, deposit and loan accounts with that credit union,

• (ii) transfer funds between accounts,

• (iii) request a withdrawal from share and deposit accounts,

• (iv) apply for loans and calculate loan repayments,

• (b) conditions to be fulfilled—

• (i) the relevant registration form in relation to such access must be completed by the parties concerned prior to the commencement of such a service,

• (ii) loan approval is subject to the relevant loan application forms and other necessary documentation in relation to such transactions being completed by the parties concerned.

• (3) Loan applications by fax,

• (a) that is to say any service by which credit union members may submit details necessary for loan applications in the form of a fax,

• (b) condition to be fulfilled—

loan approval is subject to the relevant loan application forms and other necessary documentation in relation to such transactions being completed by the parties concerned.

2. Third party payments,

that is to say any service whereby a credit union member may arrange to have transferred to his or her account third party payments by way of electronic funds transfer or otherwise.

3. Automated teller machine services (ATMs),

• (a) that is to say a service which enables a credit union member to withdraw funds from his or her credit union account by means of a credit union branded ATM card,

• (b) conditions to be fulfilled—

• (i) terms and conditions of use of such a card must be agreed by the credit union and the member,

• (ii) the member must complete the relevant registration form prior to the issue of the card.

4. Insurance services,

• (a) that is to say any service the credit union may provide to its members in respect of each of the following categories:

• (i) loan protection and life savings insurance (including related riders);

• (ii) travel insurance;

• (iii) home insurance;

• (iv) motor insurance;

• (v) repayment protection insurance.

• (b) condition to be fulfilled—

these services must be provided on an agency basis and the insurer must be authorised by the Minister for Finance in accordance with the Insurance Acts 1909 to 2000.

5. Group health insurance schemes,

that is to say a service by which a credit union may provide to its members a discount scheme with an undertaking which is registered in the Register of Health Benefits Undertakings within the meaning of the Health Insurance Acts 1994 and 2003. The subscription to such a scheme may, at the credit union member's request, be discharged from his or her account.

6. Discount for goods and services,

• (a) that is to say a service by which the credit union may negotiate on behalf of its members discounts for the supply of goods and services to be purchased by those members,

• (b) condition to be fulfilled—

any such contract must be between the supplier of the goods and services and the credit union member and the credit union must not be a party to such contracts.

7. Budget account scheme,

• (a) that is to say a service by which the credit union may agree to provide members with a budget account, on which a credit facility may be offered, and charges (including a participation fee) may be made, into which members pay agreed regular sums and from which the credit union will discharge, on the members' behalf, a list of bills agreed with each member as and when they fall due.

• (b) condition be fulfilled—

the credit union must account separately in its books for all such transactions.

8. Bill payment services,

that is to say a service by which a credit union member may have a utility or other household bill paid by the credit union, either by debiting the member's account or by using cash supplied by the credit union member.

9. Euro drafts and bureau de change,

• (a) that is to say a service the credit union may provide to its members whereby a credit union member may—

• (i) purchase euro drafts,

• (ii) purchase foreign currency drafts, travellers cheques and travel money cards,

• (iii) purchase or sell foreign currency,

• (b) conditions to be fulfilled—

• (i) these services must be provided on an agency basis and the principal must be licensed to provide such services,

• (ii) the credit union must be indemnified for the provision of these services under an insurance policy in accordance with section 47 of the Credit Union Act 1997 , as amended by Item 25 of Part 24 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003 ,

• (iii) the credit union must charge the members any expenses incurred for the provision of these services and may in addition retain its own commission,

• (iv) the credit union must account in its books for all such transactions.

10. Money transfers,

• (a) that is to say a money transmission service the credit union may provide to its members,

• (b) conditions to be fulfilled—

• (i) this service must be provided on an agency basis,

• (ii) the credit union must be indemnified for the provision of these services under an insurance policy in accordance with section 47 of the Credit Union Act 1997 , as amended by Item 25 of Part 24 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003 ,

• (iii) the credit union must charge the members any expenses incurred for the provision of these services and may in addition retain its own commission,

• (iv) the credit union must account in its books for all such transactions.

11. Money Advice and Budgeting Service (MABS),

that is to say any service provided by a credit union to its members under the Money Advice and Budgeting Service of the Department of Social and Family Affairs.

12. Service centres,

• (a) that is to say a service a credit union may provide its members for photocopying, fax and computer facilities to be made available on the credit union premises,

• (b) condition to be fulfilled—

the credit union may charge a free for this service.

13. Draws,

• (a) the credit union may carry out regular draws for which members are eligible to enter on payment of a regular subscription,

• (b) condition to be fulfilled—

such draws must be conducted on a break-even basis.

14. Standing order,

that is to say a service which may be provided by a credit union whereby a member may instruct his or her credit union to debit his or her accounts, and pay a fixed sum at regular intervals to a specified payee. Credit Unions may charge members for the provision of this service.

15. Direct debits,

that is to say a service whereby the credit union may make payments to a payee designated by the credit union member on specified dates. Such payments may vary and the account of the member shall be debited accordingly on each occasion. Credit Unions may charge members for the provision of this service.

16. Financial counselling,

• (a) that is to say a service by which a credit union member may receive, free of charge, advice on the use and management of his or her funds in the credit union,

• (b) condition to be fulfilled—

the credit union must be indemnified for the provision of this service under an insurance policy in accordance with section 47 of the Credit Union Act 1997 as amended by Item 25 of Part 24 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003 .

17. Will making,

• (a) that is to say a service arranged by the credit union by which a solicitor is available in the credit union from time to time, to take instructions and draw up wills and other testamentary documents for credit union members,

• (b) conditions to be fulfilled—

• (i) the solicitor concerned must be a practising solicitor within the meaning of the Solicitors Acts 1954 to 2002,

• (ii) the solicitor concerned must be one in respect of whom a policy of professional indemnity insurance under the Solicitors Acts 1954 to 2002 is in force in relation to that solicitor as respects the service referred to in paragraph (a).

18. Gift cheques,

that is to say a service by which a credit union member may purchase a cheque made payable to a third party in return for payment of that amount. Credit Unions may charge members for the provision of this service.

19. Electricity budget meter cards or tokens,

that is to say a service by which a credit union member may purchase electricity budget meter cards or tokens from his or her credit union to facilitate payment of his or her electricity expenses.

20. Savings Stamps,

• (a) that is to say a service by which a credit union member may purchase savings stamps issued by the credit union,

• (b) condition to be fulfilled—

the credit union must account in its books for all such transactions.

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These regulations prescribe a range of services, that individual credit unions can offer, that are exempted from the additional services requirements detailed in Section 48 of the Credit Union Act 1997 .