Credit Union and Co-operation with Overseas Regulators Act 2012

Type Act

Publication 2012-12-19

Last updated 2025-09-30

State In force

Source Irish Statute Book

articles 70

(2) For the purpose of supporting the strategic plan and enabling the board of directors of a credit union and other persons involved in the management of the credit union to control, direct and manage its affairs, a credit union shall, taking account of the nature, scale and complexity and risk profile of its business but without prejudice to any other statutory obligation to the like effect as this section—

(a) develop, prepare, implement and maintain secure and reliable information systems, or

(b) where such systems already exist within the credit union, continue to implement and maintain such systems.

Management information.

76H.— Without prejudice to any other statutory obligation to the like effect as this section, a credit union shall ensure that its information systems (within the meaning of section 76G) produce management information and other reports that are accurate, reliable, consistent, and timely so as to enable the board of directors and management team to—

(a) direct, control and manage the credit union’s business efficiently and effectively,

(b) make informed strategic and operational decisions, and

Business continuity plan.

76I.— (1) In this section—

‘business continuity’, in relation to the occurrence of one or more abnormal events which could cause a material interruption to the business of a credit union, means the continuation of its business during and after such an occurrence;

‘business continuity plan’, in relation to a credit union, means the contingency arrangements put in place to ensure that its essential functions can continue during and after the occurrence of one or more abnormal events which could cause a material interruption to the business of the credit union.

(2) A credit union shall put in place a business continuity plan—

(a) to ensure its business continuity if there occurs one or more abnormal events which could cause a material interruption to its business, and

(b) to enable it to continue to meet all requirements imposed on it under the Credit Union Acts 1997 to 2012 and other financial services legislation if any such interruption occurs,

and such plan shall include, where appropriate, comprehensive testing at regular intervals of recovery procedures by officers of the credit union and testing of backup facilities.

Outsourcing.

76J.— (1) Subject to the other provisions of this section, a credit union may by an agreement in writing entered into with any person (in this section referred to as a ‘service provider’) and upon such terms and conditions as may be specified in the agreement, provide for the performance by that person, subject to such terms and conditions (if any) as may be so specified, of such process, service or activity (in this section referred to as ‘outsourced activities’) of the credit union as may be so specified.

(2) The respective rights and obligations of the credit union and of the service provider shall be clearly allocated and set out in a written agreement.

(3) A credit union shall exercise due skill, care and diligence when entering into, managing or terminating any outsourced activities with a service provider.

(4) A credit union shall not enter into an agreement with a service provider for the performance of any of the functions exercisable by the board of directors of the credit union under section 55(1) but, subject to any matter that may be prescribed by the Bank, this shall not prevent the credit union from entering into an agreement under subsection (1) with a service provider for the provision of services in respect of any business activity (other than any such function) that is preliminary to or consequential upon the exercise by that board of the function concerned.

(5) The following conditions shall form part of every agreement to provide outsourced activities between a credit union and a service provider:

(a) the service provider has the ability, capacity and any authorisation required by law to perform those activities reliably and professionally;

(b) the service provider will carry out those activities effectively;

(c) the service provider shall properly supervise the carrying out of those activities, and adequately manage the risks associated with the outsourcing;

(d) appropriate action shall be taken by the credit union if it appears to it or to the Bank that the service provider may not be carrying out those activities effectively and in compliance with any applicable laws and regulatory requirements;

(e) the service provider shall disclose to the credit union any development that may have a material impact on its ability to carry out the outsourced activities effectively and in compliance with applicable laws and regulatory requirements;

(f) the credit union may terminate the arrangement for outsourcing, where necessary, without detriment to the continuity and quality of its provision of services to members;

(g) the service provider shall, when required, co-operate with the Bank in connection with the outsourced activities;

(h) the credit union, its auditors and the Bank shall have effective access to data related to the outsourced activities, as well as to the business premises of the service provider;

(i) the Bank shall have without notice the right of access to the business premises of the service provider for the purposes of paragraph (g);

(j) the service provider shall keep any confidential information relating to the credit union or its members in a safe and secure manner.

(6) For the purposes of every agreement to provide outsourced activities between a credit union and a service provider, the credit union shall—

(a) ensure that the service provider has no conflicts of interest in relation to the outsourced activity,

(b) retain the necessary expertise to supervise the outsourced activities effectively, manage the risks associated with the outsourcing and supervise those activities and manage those risks,

(d) be capable of resuming direct control over any outsourced activity or ensure that alternative arrangements are in place to provide the outsourced activities without detriment to the proper operation and functioning of the credit union or the continuity and quality of its provision of services to members.

(7) Where—

(a) an agreement under this section has been entered into between a credit union and a service provider, and

(b) it is necessary having regard to the activities that have been outsourced,

then the credit union and the service provider shall both establish, implement and maintain a business continuity plan and the credit union shall ensure that such plan is integrated, as necessary, within the business continuity plan referred to in section 76I.

(8) An outsourced activity shall not impair—

(a) the orderliness of the conduct of the credit union’s business,

(b) the credit union’s ability to manage and monitor its business,

(d) the ability of the credit union to comply with requirements imposed under financial services legislation,

(e) the supervision of the credit union by the Bank, and

(f) the quality of the credit union’s internal controls.

(9) Where a credit union has outsourced activities, the credit union remains legally responsible for compliance with requirements imposed under financial services legislation in respect of those activities.

(10) Nothing in this section shall be construed—

(a) as applying to any person in his or her capacity as an officer of the credit union, or

(b) as affecting any contract (whether oral or in writing) entered into between the credit union and any person for the performance by that person of any minor non-business activity where a defect or failure in its performance could not impair—

(i) the continuing compliance with the conditions and obligations of the credit union’s registration or its other obligations under the financial services legislation,

(ii) the credit union’s financial performance,

(iii) the soundness or continuity of the credit union’s financial performance, or

(iv) the soundness or continuity of the credit union’s business.

(11) (a) A credit union shall notify the Bank, in writing—

(i) when it is proposed to outsource to a service provider a material business activity, or

(ii) of any material development affecting the service provider and his or her ability to fulfil its obligations.

(b) In this subsection and subsection (12) ‘material business activity’ means an activity where a defect or failure inits performance would materially impair—

(i) the continuing compliance with the conditions and obligations of its registration or its other obligations under the financial services legislation,

(ii) its financial performance,

(iii) the soundness or continuity of its financial performance, or

(iv) the soundness or continuity of its business.

(12) (a) The Bank may prescribe the matters that a credit union shall have regard to when selecting a service provider.

(b) Without prejudice to the generality of paragraph (a), requirements for the purposes of that paragraph may include any of the following:

(i) the formalities to be involved in engaging a service provider for the purposes of a proposed outsourced activity including, for the purposes of subsections (1) and (2), the nature and content of written agreements to be entered into between the credit union and the service provider prior to commencement of the outsourcing activity;

(ii) the arrangements for notifying the Bank in writing when a material business activity is proposed to be outsourced;

(iii) the arrangements for notifying the Bank in writing of a material development affecting a service provider and what constitutes a material development.

(13) In prescribing matters for the purposes of this section, the Bank shall have regard to the need to ensure that the requirements imposed by the regulations made by it are effective and proportionate having regard to the nature, scale and complexity of credit unions, or the category or categories of credit unions, to which the regulations will apply.

Internal audit.

76K.— (1) The board of a credit union shall appoint a person (in this Act referred to as the ‘internal audit function’)—

(a) to provide for independent internal oversight, and

(b) to evaluate and improve the effectiveness,

of the credit union’s risk management, internal controls and governance processes.

(2) The internal audit function shall prepare, implement and maintain a document (in this Act referred to as the ‘internal audit charter’) which, subject to subsection (4), shall define—

(a) the activities of the internal audit function within the credit union, and

(b) the scope of those activities,

and, relevant to the performance of its audits, shall authorise the access by the internal audit function to records, personnel and physical properties of the credit union. The internal audit charter shall be reviewed and modified in accordance with section 55(8).

(3) There shall be prepared by the internal audit function and approved by the board of a credit union or, where an audit committee exists for the credit union, by the audit committee with the agreement of that board, a written plan (in this Act referred to as an ‘internal audit plan’) detailing the scope and objectives of audits, setting priorities as regards areas to be audited and determine the necessary resources required to implement the plan. The internal audit plan shall be reviewed and modified in accordance with section 55(8).

(4) The internal audit function shall be separate from other functions and activities of the credit union, and be capable of operating independently of management and without undue influence over its activities.

(5) The internal audit function shall report the results of its evaluations and recommendations to the audit committee, where one exists, or otherwise to the board of directors, on a regular basis, and at least quarterly.

(6) (a) The Bank may prescribe the form and content of the internal audit charter and internal audit plan, and related matters.

(b) Without prejudice to the generalityof paragraph (a), regulations may prescribe—

(i) the frequency and timing at which an examination of the records of the credit union is to be undertaken by the internal audit function, and

(ii) the nature of the records to be inspected for the purposes of subparagraph (i).

(7) The internal audit function shall have access, at all times, to the books and documents (including draft documents) of the credit union to enable it to carry out its functions under the Act.”.

27. Board oversight committee.

27.— (1) The Principal Act is amended by inserting the following Part after Part IV:

“PART IVA

Board Oversight Committee

Board oversight committee.

76L.— Every credit union shall have a committee (in this Act referred to as a ‘board oversight committee’) which shall—

(a) consist of 3 or 5 members elected in accordance with section 76N, and

(b) exercise the functions assigned to it by this Part.

Functions of board oversight committee.

76M.— A board oversight committee of a credit union shall assess whether the board of directors has operated in accordance with—

(a) Part IV, this Part and any regulations made for the purposes of Part IV or this Part, and

(b) any other matter prescribed by the Bank in respect of which they are to have regard to in relation to the board of directors.

Election of board oversight committee, etc.

76N.— (1) The board oversight committee of a credit union shall be elected—

(a) where the organisation meeting occurs after the commencement of this provision, by secret ballot at the organisation meeting and, subject to section 76R(4), subsequent vacancies on the board oversight committee shall be filled by secret ballot at an annual general meeting,

(b) in any other case, by secret ballot at the annual general meeting first occurring after the commencement of this provision or, if earlier than that annual general meeting, at a special general meeting called for the purpose of such ballot and, subject to section 76R(4), subsequent vacancies on the board oversight committee shall be filled by secret ballot at an annual general meeting.

(2) If a casual vacancy arises in the membership of a board oversight committee, then—

(a) within one month of the vacancy arising, the Committee shall appoint a person (who may, if the Committee thinks fit, be a former member of the Committee) other than a person to whom subsection (4), (5) or (6) relates to fill the vacancy, and

(b) the person so appointed shall hold office until the next general meeting at which an election is held for members of the board oversight committee.

(3) Where the secretary of the board oversight committee becomes aware that all the members of the committee intend to resign on the same date, the secretary shall give written notice of their intention to the Bank and the board of directors of the credit union.

(4) A credit union shall not elect under subsection (1) any of the following persons to be a member of its board oversight committee:

(a) an employee or voluntary assistant of the credit union or an employee of any other credit union;

(b) a member of the board oversight committee of any other credit union;

(c) an employee of a representative body of which the credit union is a member, where that employee’s role could expose them to a potential conflict of interest;

(d) a public servant (within the meaning of the Financial Emergency Measures in the Public Interest Act 2009) assigned to the Department of Finance and involved in advising the Minister on credit union issues or in the examination of credit union issues;

(e) a member of the Commission of the Bank;

(f) an officer (within the meaning of section 2 of the Central Bank Act 1942) or other employee of the Bank and involved in the regulation of credit unions;

(g) Financial Services Ombudsman (within the meaning of section 2 of the Central Bank Act 1942) or a Bureau staff member (within the meaning of section 57BA of that Act);

(h) a member of the Irish Financial Services Appeals Tribunal or a member of its staff (including the Registrar);

(i) the chief executive of the National Consumer Agency, an authorised officer of that Agency (within the meaning of section 2 of the Consumer Protection Act 2007) or any other member of its staff;

(j) the auditor of the credit union or a person employed or engaged by that auditor;

(k) a solicitor or other professional adviser who has been engaged by or on behalf of the credit union within the previous 3 years;

(l) a person who is a spouse or civil partner, cohabitant, parent or child, of a director, board oversight committee member or employee of that credit union;

(m) a body corporate;

(n) a person who is not of full age;

(o) a director of the credit union.

(5) A person shall resign from being a member of the board oversight committee of a credit union if and when he or she becomes a person to whom any of the provisions of subsection (4) relates.

(6) A board oversight committee member may not be appointed or reappointed to the board oversight committee if he or she has served for more than 12 years in the previous 15 years whether on the board of directors or the board oversight committee.

(7) The board oversight committee shall appoint one of their number as secretary of the committee.

Board oversight committee: procedural provisions.

76O.— (1) The board oversight committee of a credit union shall hold—

(a) at least one meeting in every month, and

(b) meetings with the board of directors at least 4 times in every year to facilitate it in carrying out the assessment under subsection (2),

and the board oversight committee shall keep minutes of every meeting held by it under paragraphs (a) and (b).

(2) The board oversight committee shall submit, within 2 weeks of any meeting referred to in subsection (1)(a), a written report to the board of directors on their assessment of whether the board of directors has operated in accordance with Part IV and this Part and any regulations relating to Part IV or this Part.

(3) The board oversight committee shall have access, at all times, to the books and documents (including draft documents) of the credit union to enable it to carry out its functions under the Act.

(4) Members of the board oversight committee shall have the right to attend all meetings of the board of directors and all meetings of committees of the credit union.

(5) The board oversight committee shall ensure at least one of its members attends every meeting of the board of directors.

(6) The board oversight committee may notify the Bank of any concern it has, that the board of directors has not complied with any of the requirements set out in this Part or Part IV, or regulations made thereunder, following a unanimous vote at a meeting of the committee called for the purpose of considering such a notification.

(7) The board oversight committee shall report to the members at the annual general meeting and, if it thinks fit, at a special general meeting, on whether the board of directors has operated in accordance with Part IV and this Part.

Board oversight committee: term of office and retirement.

76P.— (1) The term of office of a member of the board oversight committee—

(a) shall begin at the conclusion of the general meeting at which the member is elected,

(b) shall not extend beyond the third subsequent annual general meeting after being so elected, and

(c) subject to the provisions of this Act and all other applicable legal requirements, shall be determined in accordance with the registered rules,

but, except where this Act or any other applicable legal requirement or the registered rules otherwise provides, a retiring member of the committee shall be eligible for re-election.

(2) The rules for retirement from the board oversight committee shall be as follows:

(a) where the committee consists of 3 members, one shall retire at each annual general meeting;

(b) where the committee consists of 5 members, 2 shall retire at each annual general meeting;

(c) subject to paragraph (d), the members to retire at any time shall be those who have served longest since they were last elected;

(d) as between members who were last elected on the same day, the member (or members) to retire shall be determined by agreement or, in default of agreement, by the drawing of lots.

Board oversight committee: removal from office.

76Q.— (1) Subject to subsection (2), a credit union may, by resolution of a majority of the members present and voting at a special general meeting called for that purpose, remove a member of the board oversight committee from office.

(2) The secretary of the credit union shall, not less than 21 days before the date of the special general meeting at which it is proposed to move a resolution referred to in subsection (1), give written notice of that meeting to the member concerned.

(3) Where notice is given of a resolution mentioned in subsection (1) and the member of the board oversight committee concerned makes in relation to it representations in writing to the credit union (not exceeding a reasonable length) and requests their notification to the members of the credit union, the credit union shall, subject to subsection (5), (unless the representations are received by it too late to do so)—

(a) in any notice of the proposed resolution given to members of the credit union, state the fact of the representations having been made, and

(b) send a copy of the representations to every member of the credit union to whom notice of the meeting is sent.

(4) Subject to subsection (5), and whether or not copies of any representations made under subsection (3) have been sent in accordance with that subsection, the member of the board oversight committee concerned may require that, without prejudice to that member’s right to be heard orally, the representations made by that member shall be read out at the special general meeting.

(5) Subsections (3) and (4) shall not apply if, on the application either of the credit union or of any person who claims to be aggrieved, the Bank is satisfied that compliance with the subsections would diminish substantially public confidence in the credit union or that the rights conferred by those subsections are being, or are likely to be, abused in order to secure needless publicity for defamatory matter.

(6) A vacancy arising from the removal of a member of a board oversight committee under this section shall be filled in accordance with section 76N(2).

Board oversight committee: supplementary provision.

76R.— (1) A register of the members of the board oversight committee shall be kept by the secretary of the credit union and shall be signed by each member of the board oversight committee after an annual general meeting or, in the case of a member appointed to fill a casual vacancy, after such member’s appointment.

(2) In the event that the number of members of the board oversight committee falls to less than half the number specified in the registered rules, the secretary of the committee shall forthwith notify the Bank and the board of directors.

(3) The acts of a member of the board oversight committee of a credit union shall be valid notwithstanding any defect in the election or appointment of the member which may subsequently be discovered.

(4) Where any of the following events occur—

(a) the secretary of the board oversight committee has given notice under section 76N(3) that all the members of the committee intend to resign on the same date,

(b) all the members of the board oversight committee have been removed or suspended in accordance with section 96(1), or

then the board of directors shall convene a special general meeting of the credit union, within one month of the occurrence of the event in question, to elect a board oversight committee.

(5) If the special general meeting referred to in subsection (4) is not convened in accordance with that subsection, the Bank may convene such a special general meeting under section 92(1)(b).

(6) A credit union shall meet all such expenses as may be reasonably incurred by its board oversight committee in carrying out its function.”.

(2) Notwithstanding the repeal by this Act of the provisions of the Principal Act relating to Supervisory Committees, each member of the Supervisory Committee of a credit union shall, unless he or she resigns or otherwise ceases to be a member of that committee, be deemed to have been duly elected a member of the board oversight committee of the credit union for the remainder of the term that he or she would have been a member of the Supervisory Committee had this section not been enacted.

28. Special resolutions.

28.— The Principal Act is amended by substituting the following for section 83:

“83.— (1) If, at any general meeting of which notice has been given specifying the intention to propose a special resolution, the chair declares that the resolution has been passed as required by the definition of ‘special resolution’ in section 2(1), that declaration shall, without more, be evidence of that fact until the contrary is proved.

(2) A copy of every special resolution for any of the purposes mentioned in this Act—

(a) shall be signed by the chair of the meeting at which the resolution was passed,

(b) shall be countersigned by the secretary of the credit union, and

(c) within 21 days of the date of the meeting at which the resolution was passed, shall be sent to the Bank to be registered by it,

and the special resolution shall not take effect until that copy is so registered.”.

29. Power of Bank to make regulations.

29.— The Principal Act is amended by inserting the following after section 84:

“84A.— (1) In making regulations under this Act the Bank shall have regard to the need to ensure that the requirements imposed by the regulations so made are effective and proportionate having regard to the nature, scale and complexity of credit unions, or the category or categories of credit unions, to which the regulations will apply.

(2) Before making regulations under this Act, the Bank shall consult with—

(a) the Minister and the Credit Union Advisory Committee,

(b) any other body that appears to the Bank to have expertise or knowledge of credit unions generally, and

(3) Regulations made under this Act may—

(a) contain any incidental, supplementary and consequential provisions that appear to the Bank to be necessary or expedient for the purposes of the regulations,

(b) apply either generally to a specified category or categories of credit union, and

30. Liquidity and stress testing, etc.

30.— The Principal Act is amended by inserting the following section after section 85:

“Liquidity.

85A.— (1) In this section—

‘liquid assets’ means the assets held by a credit union to enable it to meet its obligations as they arise;

‘maturity mismatch’ means the ongoing or possible future divergence between a credit union’s assets and liabilities because non liquid assets of the credit union have not or, at the appropriate time, will not have matured;

‘total assets’ means all the assets of a credit union having due regard to the accounting principles in section 110 after deducting provisions for bad and doubtful debts.

(2) A credit union shall at all times keep a proportion of its total assets in liquid form (in this section referred to as ‘liquid assets’) so as to enable the credit union to meet its obligations as they arise. The proportion of assets kept in liquid form shall take into account the nature, scale and complexity of the credit union, and the composition and maturity of its assets and liabilities.

(3) The Bank may prescribe the liquidity requirements that a credit union is required to maintain at a minimum as well as conditions on the application of the liquidity requirements. Regulations made by the Bank for the purpose of this section may deal with other matters related to minimum liquidity requirements, including—

(a) the proportion and nature of assets to be held in liquid form,

(b) the holding of liquid assets based on the duration of loans,

(d) the liquid assets to be held as a safeguard on the basis of stressed conditions that may arise.

(4) In prescribing matters for the purposes of this section, the Bank shall have regard to the need to ensure that the requirements imposed by the regulations made by it are effective and proportionate having regard to the nature, scale and complexity of credit unions, or the category or categories of credit unions, to which the regulations will apply.

Supplemental provisions to sections 85 and 85A.

85B.— (1) In this section—

‘liquid assets’ has the meaning given by section 85 or 85A, as appropriate in the circumstances;

‘maturity mismatch’ has the meaning given by section 85A(1);

‘stress test’, in relation to a credit union, means the analysis of its cash flows under various headings and the placing of such cash flows in pre-determined time periods subject to specified conditions, including monetary limits where appropriate, to estimate the extent to which a credit union may have a maturity mismatch in respect of its assets and liabilities.

(2) (a) Pending the prescribing by the Bank of minimum liquidity requirements for the purposes of section 85A in respect of a category of credit unions, the liquidity requirements applicable to credit unions under section 85 shall continue to apply to such category of credit unions in respect of matters so prescribed.

(b) Where minimum liquidity requirements have been prescribed by the Bank for the purposes of section 85A in respect of a category of credit unions, then section 85 shall cease to apply to that category of credit unions in respect of the matters so prescribed.

(3) The Bank may, from time to time, require any credit union or credit unions (either generally or a particular category of credit union) to undertake stress tests into what would be the consequences for its liquidity if one or more scenarios were to arise. The terms of the stress test shall be laid down by the Bank including without limitation requirements on the frequency of stress tests, reporting arrangements for stress test results and requirements to develop contingency plans.

(4) In requiring a credit union to undertake any matter for the purposes of this section, the Bank shall have regard to the need to ensure that the requirements are effective and proportionate having regard to the nature, scale and complexity of the credit union.”.

31. Bank’s power to require appointment of additional director of credit union.

31.— The Principal Act is amended by inserting the following after section 95:

“95A.— (1) Where the Bank is of the opinion, after an inspection under section 90 or after an investigation under section 92, that it is necessary to enhance or improve the expertise of the board of directors of a credit union, it may require the nomination committee of the credit union to nominate an additional person with the required skills and expertise to be a director of the board of directors of the credit union.

(2) Any person nominated under subsection (1) shall be subject to the approval of the Bank prior to that person being nominated for appointment to the board of directors.

(3) A person shall be appointed to the board of directors for the purposes of this section by being co-opted by the board of directors and such director shall hold office from the date of the appointment to the next following annual general meeting of the credit union or, if it is earlier, the next special general meeting at which an election is held for members of the board of directors.

(4) Any director appointed under subsection (1) shall have the same rights, duties and responsibilities as any other director appointed under section 53.

(5) Any period of appointment under this section shall not be reckoned for the purposes of calculating the number of years that a person has served in aggregate for the purpose of section 53(12) or section 76N(5).”.

32. Removal of auditor of credit union by Bank.

32.— The Principal Act is amended by substituting the following for section 116:

“116.— (1) Where the Bank considers it necessary in the interest—

(a) of the members or creditors of a credit union, or

(b) of the orderly and proper regulation of the business of a credit union,

the Bank may remove from office the auditor of the credit union.

(2) Any auditor who has been removed from office under subsection (1) may apply to the Court for an order setting aside the removal.

(3) On an application under subsection (2), the Court may make—

(a) an order setting aside the removal,

(b) an order confirming the removal, or

(4) The Bank may apply to the Court for, and the Court may grant, an order confirming the removal.

(5) The Court may by order revoke or vary an order made by it under this section.

(6) If, in a case where an application has been made to the Court under this section, the Court is satisfied, because of the nature or circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of any proceedings under that provision may be heard otherwise than in public.

(7) Unless an order has been made by the Court in respect of a removal, the Bank may at any time revoke the removal.”.

33. General regulations by Bank.

33.— The Principal Act is amended by inserting the following after section 182:

“182A.— (1) The Bank may make regulations in respect of any matter which, under any provision of theCredit Union Acts 1997 to 2012, is to be prescribed by the Bank.

(2) Regulations made by the Bank under the Credit Union Acts 1997 to 2012 may apply either generally or by reference to a specified category or categories of credit unions, or to a specified time or times, or during a specified period or periods or by reference to any other matter as the Bank may consider appropriate.”.

34. Certain enactments not to apply to credit unions, etc.

34.— The Principal Act is amended by substituting the following for section 184:

“184.— The following enactments, namely—

(a) section 117 of the Central Bank Act 1989,

(b) Part IV (other than sections 27B, 27G and 27H) of the Central Bank Act 1997, and

shall not apply to a credit union or to a body the members of which are credit unions and the principal objects of which are the promotion of the credit union movement and the provision of services to credit unions.”.

35. Miscellaneous and consequential amendments to Principal Act.

35.— The Principal Act is further amended as set out in Schedule 1.

36. Consequential amendments of the Central Bank Act 1942.

36.— Sections 33ANA and 33ANB of the Central Bank Act 1942 are repealed.

37. Amendment of Schedule 2 to Central Bank Act 1942.

37.— Schedule 2 to the Central Bank Act 1942 is amended in Part 1 by substituting the following for Item 39:

“

”.

38. Revocation of statutory instruments.

38.— The following statutory instruments are revoked:

(a) the Credit Union Act 1997 (Alteration of Financial Limit) Regulations 2001 (S.I. No. 476 of 2001);

(b) the Credit Union Act 1997 (Alteration of Financial Limits) Order 2006 (S.I. No. 453 of 2006).

PART 3 Restructuring

39. Interpretation (Part 3).

39.— In this Part—

“Board of ReBo” means the Board appointed by the Minister under section 49 (1);

“Chair of ReBo” has the meaning given by section 49 (3);

“Chief Executive” has the meaning given by section 52 (1);

“Credit Union Fund” has the meaning given by section 57 (1);

“establishment day” means the day appointed under section 42as the establishment day;

“ReBo” means the Credit Union Restructuring Board;

“stabilisation support” has the meaning given by section 61.

40. Independence of Bank and its Governor not affected (Part 3).

40.— Nothing in this Part, or anything stated or done (nor the fact of something not having been stated or done) by an employee of the Bank appointed as a non-voting member to ReBo in accordance with section 49(1), prevents or restricts the performance by the Governor of the Bank or the Bank of functions in relation to any credit union including functions under financial services legislation or affects any obligation arising under the treaties governing the European Union (within the meaning given by section 1 of the European Communities Act 1972) or the ESCB Statute (within the meaning given by section 2 of the Central Bank Act 1942).

41. Minister to have regard to European Union law (Part 3).

41.— In performing a function under this Part, the Minister shall have regard to the laws of the European Union (including those governing state aid) and any relevant guidance issued by the Commission of the European Union.

Credit Union Restructuring Board

42. Establishment of Credit Union Restructuring Board.

42.— (1) The Minister shall by order appoint a day to be the establishment day for the purposes of this Part.

(2) On the establishment day there shall stand established a body to be known as the Credit Union Restructuring Board (in this Part referred to as “ReBo”) which shall exercise the functions assigned to it by this Part.

(3) ReBo shall be a body corporate with the power to sue and be sued in its corporate name.

43. Cessation of effect of this Part.

43.— (1) Subject to subsection (2), when the Minister is satisfied, after conducting a review to which subsection (2) relates, that ReBo has completed the performance of its functions under this Part, the Minister may—

(a) by order dissolve ReBo, and

(b) subject to the provisions of this Act, include in the order such incidental, ancillary or consequential provisions as the Minister considers necessary or expedient,

and, accordingly, this Part shall cease to have effect other than in so far as it relates to incidental, ancillary or consequential provisions provided for by the Minister under paragraph (b) and any such order may be amended by virtue of this section in so far as it relates to such provisions.

(2) (a) The Minister shall, not later than 1 January 2016 and after consultation with ReBo and such other persons whom he or she considers appropriate, conduct a review of the operation of this Part to determine whether or not ReBo has, in the Minister’s opinion, completed the performance of its functions.

(b) Where, having conducted a review under this subsection, the Minister is satisfied that ReBo has not completed the performance of its functions, then the Minister shall conduct a further such review within 12 months of thepreceding review and such further review shall be considered as if it were a review conducted under paragraph (a).

(3) When an order under subsection (1)is proposed to be made, a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving of the draft has been passed by each such House.

44. Restructuring functions of ReBo.

44.— (1) In addition to the making of a recommendation under section 65, ReBo shall facilitate and oversee the restructuring of credit unions in accordance with this Part to support the financial stability and long term sustainability of credit unions generally, and for that purpose its functions shall include—

(a) analysing and examining information provided to it by the Bank, credit unions or by any other person,

(b) developing provisional proposals and plans with credit unions for the restructuring of the credit union sector,

(d) assisting credit unions in the preparation of restructuring plans,

(e) considering and assessing restructuring plans submitted to it by or on behalf of credit unions including any funding requirements under the plan including requiring credit unions to engage third parties to verify information and provide a report to ReBo,

(f) approving, approving with conditions or rejecting those restructuring plans,

(g) recommending the restructuring plans to the Minister and advising the Bank of its recommendations,

(h) overseeing the implementation of restructuring plans, including the provision of post-restructuring support.

(2) Subject to this Part, ReBo may do anything which it considers necessary or expedient to enable it to perform its functions including making arrangements with any other person or body for the use by it of premises or equipment belonging to that person or other body or for the use by ReBo of the services of officers or servants of that person or other body.

45. Restructuring of credit unions.

45.— (1) Where 2 or more credit unions decide to submit, either jointly or severally in respect of themselves, a proposed restructuring plan (in this Act referred to as the “restructuring proposal”) to ReBo, it shall be in such form and contain such information (including funding requirements and any analysis required to be undertaken) as ReBo may, from time to time, specify in writing as required for the purpose of the submission of a proposal to it.

(2) Every restructuring proposal under this section shall provide for—

(a) the amalgamation of credit unions, or

(b) the transfer of engagement between credit unions,

under Part IX of the Principal Act.

(3) Where ReBo decides that it will be or is relevant to its consideration of a restructuring proposal, it may—

(a) before submission to it of the restructuring proposal, and whether or not at the request of the credit union or credit unions concerned, indicate to the credit union or credit unions concerned that it requires the restructuring proposal to contain such additional information (including any analysis to be undertaken) as ReBo specifies, and

(b) after submission of the restructuring proposal to it, require such additional information (including any analysis to be undertaken) to be provided to it as ReBo specifies to the credit union or credit unions concerned.

(4) ReBo may require a credit union or group of credit unions to engage a third party approved by ReBo to prepare a report to verify the information provided to it under subsection (3)or otherwise.

(5) ReBo shall consider and assess any restructuring proposal submitted to it, including any funding requirements submitted to it in accordance with any requirements issued under subsection (1), and any information required under subsection (3)(b)or report under subsection (4). Following such consideration and assessment, the Board of ReBo shall—

(a) approve the restructuring proposal as a restructuring plan for the credit union or credit unions concerned, and, where relevant, recommend to the Minister the provision of financial support under this Part in respect of the restructuring proposal as a restructuring plan for the credit union or credit unions concerned, with or without specified conditions, or

(b) reject the restructuring proposal.

(6) Where ReBo approves the restructuring proposal as a restructuring plan for the credit union or credit unions concerned, with or without specified conditions, and makes a recommendation to the Minister it shall advise the Bank of its approval and recommendation (together with those conditions).

(7) Nothing in this Part prevents ReBo from making a recommendation to the Bank, in relation to an individual credit union for the purposes of section 65.

46. Guidelines and directions.

46.— (1) ReBo shall, in consultation with the Minister and, where relevant, the Bank, develop guidelines for the operating principles of ReBo and, after obtaining approval of the Minister for such, ReBo shall adopt such guidelines and have regard to them in the performance of its functions.

(2) As soon as practicable after ReBo has adopted guidelines under subsection (1), the Minister—

(a) shall cause the guidelines to be published in Iris Oifigiúil, and

(b) shall lay a copy of the guidelines before each House of the Oireachtas.

(3) The Minister may give a direction in writing to ReBo concerning any matter relating to the provision of funding to support the achievement of the purposes of this Part and ReBo shall comply with any such direction.

(4) The Minister may consult with the Bank before giving directions under this section.

47. ReBo levy.

47.— (1) For the purpose of financing the performance by ReBo of its functions under this Part and subject to subsection (6), ReBo shall, with the consent of the Minister and in accordance with any directions that the Minister may give for the purposes of this section, make regulations prescribing—

(a) the levy to be paid to it by credit unions (in this section referred to as the “ReBo levy”), and

(b) when the levy falls due to be paid by credit unions,

and different rates of levies may be imposed on different categories of credit unions, including the imposition of a levy of zero per cent on a category of credit unions.

(2) Without prejudice to the generality of subsection (1), the power to make regulations under that subsection includes the power to provide for exemptions from the payment of the ReBo levy, or waiving, remitting or refunding that levy (in whole or in part), in different circumstances or classes of circumstances or in different cases or classes of cases.

(3) The total amount of the ReBo levy charged annually under this Part shall, as nearly as may be, taking one year with another, be equal to half the total expenditure incurred by ReBo annually in the performance of its functions.

(4) The ReBo levy received from each credit union shall be paid into the Credit Union Fund.

(5) ReBo may recover as a simple contract debt in any court of competent jurisdiction, from a person by whom the fee is payable, any amount due and owing to ReBo in respect of a levy charged under this section.

(6) Before making regulations under this section, the Board of ReBo—

(a) shall consult with the Minister and the Credit Union Advisory Committee, and

(b) may consult with any other body appearing to the Board to have expertise or knowledge of credit unions and with such other persons as the Board considers appropriate.

48. Collection of ReBo levy and amendment of section 61H of the Central Bank Act 1942.

48.— (1) The ReBo levy shall be collected by ReBo or, where an arrangement has been entered into by it with the Bank pursuant to section 61H of the Central Bank Act 1942 (as amended by subsection (2)), by the Bank.

(2) Section 61H(4) of the Central Bank Act 1942 is amended in the definition of “prescribed body” by inserting the following after paragraph (c):

“(ca) the Credit Union Restructuring Board;”.

49. Membership of Board of ReBo, etc.

49.— (1) Subject to subsection (2), the Minister shall appoint the Board of ReBo which shall consist of such number of persons as the Minister may determine, including an employee of the Bank nominated by the Governor for appointment as a non-voting member of the Board of ReBo.

(2) Each member of the Board shall be appointed for such period as the Minister thinks fit, and every person so appointed, other than the person nominated by the Governor of the Bank, shall be chosen by the Minister for appointment—

(a) by reason of that person’s knowledge of matters pertaining to the restructuring of credit unions, or

(b) because, in the opinion of the Minister, that person is capable of giving substantial practical assistance in respect of the work of the Board.

(3) The Minister shall from time to time nominate one member of the Board of ReBo to act as its chairperson (in this Part referred to as the “Chair of ReBo”).

(4) There shall be paid to every member of the Board of ReBo such remuneration and expenses as the Minister may determine from time to time. The Minister may determine that the Chair of ReBo shall be paid additional remuneration or allowances on account of his or her responsibilities as chairperson.

(5) The Board of ReBo shall—

(a) hold such meetings as are necessary for the performance of its functions, and

(b) shall conduct its business with as little formality and technicality, and with as much expedition, as a proper consideration of the matters before it will allow,

and, subject to paragraph (b), the Board of ReBo shall regulate its own procedures and business.

(6) ReBo shall comply with the Code of Practice for the Governance of State Bodies, published by the Department of Finance in May 2009, and with such other codes of practice or other like documents as may be published from time to time by the Minister or the Minister for Public Expenditure and Reform regarding the governance generally of State bodies, including—

(a) any revisions duly made to such codes or like documents, or

(b) any additional relevant requirements issued by the Minister or the Minister for Public Expenditure and Reform.

(7) The Minister may for stated reasons remove a member of the Board of ReBo from office if, in the opinion of the Minister—

(a) the member has become incapable through ill health of effectively performing the functions of the office,

(b) the member has committed stated misbehaviour,

(c) the member has a conflict of interest of such significance that, in the opinion of the Minister, the person should cease to hold the office, or

(d) the member’s removal appears to be necessary for the effective performance of the functions of the Board.

50. Non-disclosure of information.

50.— (1) This section applies to the following persons:

(a) every member of the Board of ReBo and every former member of that Board;

(b) the Chief Executive and every former Chief Executive;

(d) the auditor of ReBo and every former auditor of ReBo;

(e) every person who is or was an agent, consultant or adviser of ReBo or appointed in any other capacity by ReBo;

(f) every employee or former employee of an auditor, an agent, consultant or adviser appointed by ReBo.

(2) A person referred to in subsection (1) shall not disclose confidential information concerning—

(a) the business of any person or body whether corporate or incorporate that has come to the person’s knowledge through the person’s office or employment or other role with ReBo, or

(b) any matter arising in connection with the performance of the functions of ReBo or the exercise of ReBo’s powers.

(3) ReBo may disclose information, including confidential information—

(a) to the Minister,

(b) to the Bank, and

(i) the person to whom the information relates, and

(ii) if the information was obtained from another person, that other person.

(4) ReBo shall co-operate with the Bank with a view to ensuring that the provisions of this Part operate in a way that contributes to promoting the best interests of credit unions generally. This may include the sharing of such information required by the Bank relevant to the performance of its functions.

(5) As soon as practicable after the commencement of this section, ReBo and the Bank shall enter into a memorandum of understanding setting out the terms under which they agree to give effect to this section.

(6) Nothing in this section prevents the disclosure—

(a) of information when required to be disclosed by law, or

(b) in a report or otherwise by ReBo of information relating to a person where the information is presented in a manner (either by the aggregation of information relating to more than one person or otherwise) that maintains the anonymity of each person concerned.

(7) A person who contravenes subsection (2)is guilty of an offence and liable on summary conviction to a class A fine.

51. Reports to Minister.

51.— (1) ReBo may make such reports to the Minister on the performance of its functions as it thinks fit.

(2) ReBo shall give to the Minister such other information as the Minister may require in respect of the performance by ReBo of its functions and its policies in respect of such performance.

52. Chief executive officer of ReBo.

52.— (1) There shall be a chief executive officer of ReBo (in this Part referred to as the “Chief Executive”).

(2) The Chief Executive shall, subject to subsection (3), be appointed by the Board of ReBo on the recommendation of the Chief Executive of the Public Appointments Service.

(3) The appointment shall either—

(a) be on such terms (including terms as to remuneration, duration of term and allowances for expenses) as the Minister may, with the consent of the Minister for Public Expenditure and Reform, determine and be subject to the Public Service Management (Recruitment and Appointments) Act 2004, or

(b) be on such other terms (including terms as to remuneration, duration of term and allowances for expenses) as may be determined by the Board of ReBo and approved by the Minister with the consent of the Minister for Public Expenditure and Reform.

(4) The Chief Executive shall—

(a) implement the policies and decisions of ReBo,

(b) manage and control generally ReBo’s staff, administration and business, and

(5) The Chief Executive shall be responsible to the Board of ReBo for the performance of the Chief Executive’s functions.

(6) The Chief Executive shall not be a member of the Board of ReBo, but may, in accordance with procedures established by the Board, attend meetings of the Board and shall be entitled to speak at and give advice at such meetings.

(7) The Chief Executive shall provide the Board of ReBo with such information, including financial information in respect of the performance of the Chief Executive’s functions, as the Board may require.

(8) The Chief Executive shall not hold any office or occupy any other position in respect of which remuneration is payable, or carry on any business, without the consent of the Board of ReBo and the approval of the Minister.

(9) Such of the functions of the Chief Executive as the Chief Executive may specify, may, with the consent of the Board of ReBo, be performed by such member or members of the staff of ReBo as the Chief Executive may authorise for that purpose.

(10) The functions of the Chief Executive may be performed during the Chief Executive’s absence or when the post of Chief Executive is vacant by such member or members of the staff of ReBo as the Board of ReBo may authorise for that purpose.

53. Staff of ReBo.

53.— (1) ReBo may, with the approval of the Minister—

(a) appoint such and so many persons to be members of the staff of ReBo as it may determine, and

(b) determine the grades of such staff of ReBo and the number of staff in each grade.

(2) An appointment under this section shall either—

54. Accounts and audit.

54.— (1) The Chief Executive, under the direction of the Board of ReBo, shall—

(a) submit estimates of income and expenditure to the Minister in such form, in respect of such periods and at such times as may be specified by the Minister, and

(b) provide to the Minister any information which the Minister may require regarding those estimates and also regarding the proposals and plans of the Board in respect of a period specified by the Minister.

(2) The Chief Executive, under the direction of the Board of ReBo, shall keep, in such form and in respect of such accounting periods as may be approved of by the Minister, with the consent of the Minister for Public Expenditure and Reform, all proper and usual accounts of moneys received and spent by ReBo, including an income and expenditure account and a balance sheet.

(3) (a) The Board of ReBo, its Chief Executive and any relevant member of the staff shall, whenever so required by the Minister, permit any person appointed by the Minister to examine the accounts of ReBo in respect of any financial year or other period and shall facilitate any such examination, and ReBo shall pay to the Minister such fee for the examination as may be fixed by the Minister.

(b) In this subsection “relevant member of the staff” means a member of the staff of ReBo to whom duties relating to those accounts have been duly assigned.

(4) The accounts of ReBo shall be approved by it as soon as is practicable (but not later than 3 months after the end of the accounting period to which they relate) and submitted by it to the Comptroller and Auditor General for audit.

(5) A copy of the accounts and the report of the Comptroller and Auditor General on them shall be presented to the members of ReBo and the Minister as soon as is practicable, and the Minister shall cause a copy of the accounts and report to be laid before each House of the Oireachtas.

55. Contracted service providers.

55.— (1) ReBo may engage the services of any expert adviser or other service provider where ReBo considers it necessary or expedient to do so in connection with the performance of its functions.

(2) In contracts for the provision of services to ReBo by expert advisers and service providers, ReBo shall seek to ensure that each expert adviser or service provider—

(a) operates to the highest standards of honesty and fairness and with due skill, care, prudence and diligence in conducting its business activities under the contract concerned,

(b) effectively employs the resources and procedures that are necessary for the proper performance of such business activities,

(c) makes every effort to avoid or manage conflicts of interest and to declare any such conflict (actual or potential) to ReBo,

(d) complies with any regulatory regime to which it is subject,

(e) permits ReBo to engage auditors to carry out an audit of the books, accounts and other financial statements of the expert adviser or service provider so far as they relate to the services performed for ReBo, and

(f) is obliged to co-operate fully in such audits.

56. Disclosure of information.

56.— (1) Disclosure by a credit union to ReBo of information or records does not contravene any duty of confidentiality to which the credit union is subject.

F18[(2) A credit union may disclose to ReBo personal data within the meaning of the Data Protection Regulation.]

(3) Section 33AK(5) of the Central Bank Act 1942 is amended by inserting the following paragraph after paragraph (aj):

“(aja) to the Credit Union Restructuring Board that is required for the performance of that Board’s functions,”.

F19[(4) In this section, "Data Protection Regulation" means Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016^44on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation).]

57. Credit Union Fund.

57.— (1) A fund, to be known as the Credit Union Fund, is established.

(2) The purpose of the Credit Union Fund is—

(a) to provide a source of financial support for the restructuring of credit unions under this Part,

(b) to provide stabilisation support in accordance with Part 4,

(d) to provide for the costs referred to in section 60(2), and

(e) to provide for the expenses referred to in section 67.

(3) The Minister may contribute to the Credit Union Fund such sums as the Minister considers appropriate from the Central Fund or the growing produce of the Central Fund.

(4) The Minister is entitled to be reimbursed from the Credit Union Fund for all contributions under subsection (3). All sums paid out of the Credit Union Fund in repayment of a contribution under this subsection shall be paid into or disposed of for the benefit of the Exchequer.

(5) The Minister may, following receipt of a recommendation from ReBo by virtue of section 45(5)(a), provide financial support from the Credit Union Fund, on such terms and conditions that the Minister considers appropriate, to a credit union or group of credit unions for the purposes of restructuring under this Part. The provision of financial support by the Minister may be conditional on the Bank confirming the amalgamation or transfer under section 131(6)(a) of the Principal Act.

(6) Where requested by the Bank under section 65(5), the Minister may provide stabilisation support from the Credit Union Fund on such terms and conditions as the Minister considers appropriate. The provision of stabilisation support by the Minister shall be conditional on the Bank approving the provision of stabilisation support under section 65(6).

(7) The terms and conditions referred to in subsections (5) and (6)may include the recoupment of moneys over time from the credit union in respect of the stabilisation support provided, including the cost of providing that support but conditions under subsection (6)shall not include any of the matters to which section 65(6)relates.

(8) Financial support under subsection (5) or(6) may take the form of a payment, a loan, a guarantee, an exchange of assets or any other kind of financial accommodation or assistance.

(9) Moneys recouped from a credit union in respect of financial support provided out of the Credit Union Fund to it under this Part shall be paid into that Fund.

58. Keeping and audit of accounts of Credit Union Fund, etc.

58.— (1) The Minister shall administer and manage the Credit Union Fund and shall cause—

(a) all proper and usual accounts of receipts and payments to be kept for that Fund in respect of each financial year, and

(b) the transmission of those accounts, not later than 30 June in the year following the end of the financial year to which they relate, to the Comptroller and Auditor General.

(2) The Comptroller and Auditor General shall audit the accounts of the Credit Union Fund transmitted to him or her pursuant to subsection (1).

(3) Upon completion of the audit of the accounts, the Comptroller and Auditor General shall prepare a report in writing in relation to them and shall submit a copy of the report together with a copy of the accounts to the Minister not later than 31 August in the year following the financial year to which they relate. The Minister shall cause copies of the report and the said accounts to be laid before Dáil Éireann not later than 30 September in the year following the financial year to which they relate or, if Dáil Éireann then stands dissolved, the date that is one week after the first meeting of the next Dáil Éireann.

59. Credit union levy.

59.— (1) A credit union shall contribute to the Credit Union Fund in accordance with any regulations made under this section. Such contribution is, in this Part, referred to as the “credit union levy”.

(2) The Minister may make regulations prescribing the rate of contribution, or a method of calculating the rate of contribution, to the Credit Union Fund by a credit union under this section for the purpose of reimbursing the Minister for the provision of financial support under section 57(5) which is not recouped, or which, in the opinion of the Minister, is not recoupable in full, in accordance with the terms and conditions of that financial support, from the credit union to which such financial support was provided.

(3) The Minister shall make regulations prescribing the rate of contribution, or a method of calculating the rate of contribution, to the Credit Union Fund by a credit union under this section for the purpose of providing funding for the provision of stabilisation support under section 57(6).

(4) In making regulations under subsection (2) the Minister shall have regard to—

(a) the need for the Credit Union Fund to grow, over time, to a size commensurate to the costs that might be, or that have been, incurred in providing financial support for the restructuring of credit unions under this Part or providing stabilisation support under Part 4, and

(b) the need for the rate of contribution by a credit union, or category of credit unions, to be consistent with maintaining the financial viability and sustaining the commercial position of such credit unions.

(5) Regulations under subsection (2)may prescribe different rates, or different methods of calculating rates, of contribution for different credit unions, or different category of credit unions, including according to—

(a) the nature, scale and complexity of the business of each such credit union or category of credit union, and the level of risk associated with each such credit union, or category of credit unions concerned,

(b) the capacity of credit unions or categories of credit union to make the proposed contribution, and

(c) the extent to which a credit union or credit unions have or may benefit from the provision of financial support from the Credit Union Fund.

(6) Before making regulations under this section, the Minister—

(a) shall consult with the Bank, the Credit Union Advisory Committee and ReBo, and

(b) may consult with any other body appearing to the Minister to have expertise or knowledge of credit unions and with such other persons as the Minister considers appropriate. A draft of the proposed regulations may be provided as part of any such consultation.

(7) Every credit union levy collected shall be paid into the Credit Union Fund.

(8) The Minister may recover as a simple contract debt in any court of competent jurisdiction, from a person by whom the fee is payable, any amount due and owing to the Minister in respect of a levy charged under this section.

60. Arrangements for collection of credit union levies.

60.— (1) The Minister, the Bank, and the Credit Union Restructuring Board may enter into an arrangement in relation to the collection of contributions payable by credit unions in the form of levies under this Act.

(2) The costs associated with the collection of levies under this Act shall be met from the Credit Union Fund.

PART 4 Stabilisation

61. Interpretation (Part 4).

61.— In this Part—

“costs” include costs incurred by the Bank in the exercise of its functions under this Part;

“reserve requirement” means the reserves which a credit union is required to hold under section 45 of the Principal Act;

“Stabilisation Committee” has the meaning given by section 66;

“stabilisation support” means financial support provided under this Act by the Minister from the Credit Union Fund to a credit union for the purpose of restoring and facilitating the maintenance of that credit union’s reserve requirement, and such support by the Minister may include the provision of technical and financial advice and the provision of financial support to the credit union concerned.

62. Independence of Bank and its Governor not affected (Part 4).

62.— Nothing in this Part prevents or restricts the performance by the Governor of the Bank or the Bank of functions in relation to any credit union, including functions under financial services legislation, or affects any obligation arising under the treaties governing the European Union (within the meaning given by section 1 of the European Communities Act 1972) or the ESCB Statute (within the meaning given by section 2 of the Central Bank Act 1942).

63. Minister and Bank to have regard to European Union law (Part 4).

63.— In performing a function under this Part, the Minister and the Bank shall have regard to the laws of the European Union (including those governing state aid) and any relevant guidance issued by the Commission of the European Union.

64. Funding for stabilisation support.

64.— The Bank shall not approve the provision of stabilisation support under this Part unless the Credit Union Fund contains funds for the provision of stabilisation support.

65. Provision of stabilisation support.

65.— (1) (a) Subject to subsection (2)andsection 64, the Bank may approve the provision of stabilisation support under this section to a credit union where the credit union does not meet the regulatory reserve requirement but only if—

(i) its regulatory reserve is equal to or greater than 7.5 per cent of the total assets of the credit union, and

(ii) in the opinion of the Bank, the credit union is viable as a credit union.

(b) In this subsection “total assets of the credit union” means all of the assets of the credit union concerned having due regard to the accounting principles set out in section 110 of the Principal Act after deducting any provisions for bad or doubtful debts.

(2) Until the commencement of an order under section 43 (1), stabilisation support shall not be approved by the Bank for a credit union under subsection (1) unless the Credit Union Restructuring Board has recommended that the credit union be considered by the Bank for stabilisation support.

(3) The Credit Union Restructuring Board may only make a recommendation to the Bank in relation to an individual credit union for the purposes of subsection (1) if:

(a) the credit union is not party to a restructuring proposal approved or being considered for approval as part of a restructuring plan under section 45(5)(a), and

(b) the credit union satisfies the requirements of subsection (1)(a)(i).

(4) Before deciding to approve the provision of stabilisation support under subsection (1), the Bank shall have regard to the following:

(a) the extent to which the credit union concerned has complied with, or failed to comply with, the regulatory requirements imposed on the credit union by or under the Credit Union Acts 1997 to 2012 (including requirements regarding systems and controls) or the Central Bank Acts 1942 to 2012 or otherwise imposed on that credit union;

(b) any actions, plans or other strategies prepared or implemented by the credit union concerned to protect or improve its regulatory reserve requirement;

(i) to maintain its reserve requirement, and

(ii) to fund the business of the credit union,

after the provision of stabilisation support for a period of at least 3 years after the provision of such stabilisation support under this Act;

(d) any plans, information or analysis submitted by the credit union concerned, under subsection (5) or otherwise;

(e) the availability to the Bank of up-to-date and accurate financial information and accounts of the credit union concerned, including (in the opinion of the Bank) full and fair financial disclosure;

(f) the previous financial performance of the credit union concerned prior to applying for stabilisation support including any previous stabilisation support received under this section or otherwise;

(g) any other matters that the Bank considers reasonably relevant, in the particular circumstances, having regard to the Bank’s other functions;

(h) such terms and conditions as the Minister considers appropriate to attach to the stabilisation support.

(5) For the purpose of exercising its functions under this section, the Bank may request the provision of stabilisation support by the Minister under section 57(6) and may require—

(a) the credit union concerned to submit such plans, information or analysis as it considers reasonably necessary, and

(b) that any such plans, information or analysis is verified by a report of a third party approved by the Bank and in accordance with requirements determined by the Bank.

(6) The provision of stabilisation support to a credit union under this section may be approved by the Bank on such terms and conditions as the Bank considers appropriate, including—

(a) changes to the governance of the credit union,

(b) changes to the business, operations, systems and processes within the credit union,

(c) any requirement (in the form of a pre-condition or otherwise) by the Bank on the credit union to accept, or procure on such terms and conditions as the Bank considers appropriate, other support, including financial advice, technical advice and other advice,

(d) any of the measures which may be contained in a regulatory direction under section 87(3) of the Principal Act,

(e) compliance by the credit union with the above terms and conditions, including periodic targets for the credit union to meet and the preparation of updates or such other reports as the Bank may require to satisfy itself as to the credit union’s compliance with the terms and conditions.

(7) The approval by the Bank of the provision of stabilisation support under this section is not a warranty by the Bank as to the solvency of the credit union or as to whether or not the credit union will in fact meet its reserve requirements, or any other requirement to which the credit union is subject.

66. Stabilisation Committee.

66.— (1) On the appointed day there shall stand established by the Minister a body known as the Credit Union Stabilisation Committee (in this Part referred to as the “Stabilisation Committee”) which shall exercise the functions assigned to it by this section.

(2) The Stabilisation Committee shall examine the implementation by the Bank of the Bank’s requirements and procedures in relation to its functions under this Part and the exercise of those functions by the Bank. Where after such examination the Stabilisation Committee forms a conclusion on any matter, it shall forward it in writing to the Minister and the Bank.

(3) In performing its functions the Stabilisation Committee shall not interfere or otherwise impinge on the independence of the Bank in the performance by the Bank of any of its functions.

(4) (a) The Stabilisation Committee shall consist of not more than 7 persons appointed in writing by the Minister for such period as the Minister thinks fit.

(b) A person appointed to the Stabilisation Committee shall be chosen by the Minister for appointment having regard to the representative nature of the person, and the volunteer ethos of credit unions and their representative bodies.

(d) A person may resign from the Stabilisation Committee by sending his or her resignation in writing to the Minister.

(5) (a) The Minister shall from time to time nominate one member of the Committee to act as chair.

(b) The Minister may for stated reasons remove a person from acting as chair, with or without removing the person from being a member of the Stabilisation Committee.

(6) Subject to the other provisions of this section, the Stabilisation Committee shall decide on its own procedures.

67. Expenses of Bank under Part 4.

67.— The expenses incurred by the Bank in exercising its functions under this Part shall be paid out of the Credit Union Fund.

PART 5 Miscellaneous Amendments relating to Central Bank Acts 1942 to 2011

68. Amendments to Central Bank Act 1942.

68.— (1) Section 33AK of the Central Bank Act 1942 is amended—

(a) by substituting “subsection (1A)” for “subsection (1)(b)” in each place, and

(b) in subsection (3) by substituting the following for paragraph (b):

“(b) Paragraph (a) does not apply—

(i) where the Bank is satisfied that the supervised entity has already reported the information concerned to the relevant body, or

(ii) where the information concerned has come into the possession of, or to the knowledge of the Bank, from an authority, in a jurisdiction other than that of the State, duly authorised to exercise functions similar to any one or more of the statutory functions of the Bank.”.

(2) Schedule 2 to the Central Bank Act 1942 is amended in Part 1 by substituting the following for item 38:

“

”.

69. Amendment to Central Bank Reform Act 2010.

69.— The Central Bank Reform Act 2010 is amended—

(a) in section 3 by inserting the following definitions:

“ ‘authorised officer’ means a person appointed by the Bank under Part 5 to be an authorised officer;

‘financial services legislation’ means—

(a) the designated enactments,

(b) the designated statutory instruments, and

and

(b) by inserting the following after section 53:

“PART 4

Overseas Regulators

Co-operation with overseas regulators.

54.— (1) In this section ‘overseas regulator’ means an authority in a jurisdiction other than that of the State duly authorised to perform functions similar to any one or more of the statutory functions of the Bank.

(2) At the request of an overseas regulator to do so in relation to any matter, the Bank may—

(a) require information on the matter about which the Bank has required or could require the provision of information or the production of documents under any provision of financial services legislation, or

(b) authorise one or more than one authorised officer to exercise any of his or her powers for the purposes of investigating the matter.

(3) In deciding whether or not to exercise any of its powers under subsection (2), the Bank may take into account in particular:

(a) whether in the country or territory of the overseas regulator, corresponding assistance would be given to an authority duly authorised in the State to perform functions corresponding to functions exercised by the overseas regulator;

(b) whether the case concerns the breach of a law, or other requirement, which has no close parallel in the State or involves the assertion of a jurisdiction not recognised by the State;

(d) whether it is otherwise appropriate in the public interest to give the assistance sought.

(4) The Bank may decide that it will not exercise any of its powers under subsection (2) unless the overseas regulator undertakes to make such contribution towards the cost of such exercise as the Bank considers appropriate.

(5) Subsections (3) and (4) do not apply if the Bank considers that the exercise of its power is necessary to comply with any obligation created or arising by or under the Treaties governing the European Union.

(6) If the Bank authorises an authorised officer for the purposes of subsection (2)(b), the Bank may direct the authorised officer to permit a representative of the overseas regulator to attend, and take part in, any interview conducted for the purposes of the investigation of the matter concerned.

(7) A direction under subsection (6) is not to be given unless the Bank is satisfied that any information obtained by an overseas regulator as a result of the interview will be subject to obligations of non-disclosure of information similar to those imposed on the Bank in section 33AK of the Act of 1942.

(8) A person shall not be required for the purposes of the exercise of any power under this section to answer any question tending to incriminate the person.

PART 5

Authorised Officers

Definitions (Part 5).

55.— (1) In this Part—

‘agent’, in relation to a person to whom this Part applies, includes a past as well as a present agent and includes the person’s banker, accountant, solicitor, auditor and financial or other adviser, whether or not a person to whom this Part applies;

‘authorisation’ means an authorisation, licence or any other permission required to carry on business as a regulated financial service provider granted by the Bank pursuant to any provision of financial services legislation, and includes registration;

‘customer’, in relation to a regulated financial service provider, means—

(a) any person to whom the regulated financial service provider provides or offers financial services, or

(b) any person who requests the provision of financial services from the regulated financial service provider,

and includes a potential customer and a former customer;

‘person to whom this Part applies’ shall be read in accordance with section 56;

‘prescribed contravention’ has the same meaning as in section 33AN of the Act of 1942;

‘premises’ includes vessel, aircraft, vehicle and any other means of transport, as well as land and a building and any other fixed or moveable structure;

‘regulated market’ has the same meaning as in Regulation 3 of the European Communities (Markets in Financial Instruments) Regulations 2007 (S.I. No. 60 of 2007);

‘related undertaking’, in relation to a person (‘the first-mentioned person’), means—

(a) if the first-mentioned person is a company, another company that is related within the meaning of section 140(5) of the Companies Act 1990,

(b) a partnership of which the first-mentioned person is a member,

(c) if the businesses of the first-mentioned person and another person have been so carried on that the separate business of each of them, or a substantial part thereof, is not readily identifiable, that other person,

(d) if the decision as to how and by whom the businesses of the first-mentioned person and another person shall be managed can be made either by the same person or by the same group of persons acting in concert, that other person,

(e) a person who performs a specific and limited purpose by or in connection with the business of the first-mentioned person, or

(f) if provision is required to be made for the first-mentioned person and another person in any consolidated accounts compiled in accordance with Seventh Council Directive 83/349/EEC of 13 June 1983 ^1, that other person.

(2) References in this Part to a regulated financial service provider, or a related undertaking, shall, unless the context otherwise requires, be read as including a person who was a regulated financial service provider, or a related undertaking, at the relevant time.

Persons to whom this Part applies.

56.— (1) The following are persons to whom this Part applies (including persons outside the State):

(a) a regulated financial service provider;

(b) a person who has applied for an authorisation but whose application has not been determined;

(c) a person whom the Bank reasonably believes is or was a regulated financial service provider, or is or was acting as or claiming or holding himself or herself out to be a regulated financial service provider;

(d) a person who is or was, or whom the Bank reasonably believes, is or was, without an authorisation, providing a financial service in respect of which an authorisation is required;

(e) a related undertaking of any of the persons referred to in paragraph (a), (b), (c) or (d);

(f) any other person whom the Bank reasonably believes may possess information about a person referred to in paragraph (a), (b), (c), (d) or (e);

(g) any person whom the Bank reasonably believes may possess information about a financial product or investment admitted to trading or which is to be admitted to trading under the rules and systems of a regulated market.

(2) The duty imposed by this Part to produce or provide any information, extends to—

(a) a person who is in relation to a person to whom this Part applies—

(i) an administrator within the meaning of section 1(1) of the Insurance (No. 2) Act 1983,

(ii) an administrator within the meaning of section 2 of the Investor Compensation Act 1998,

(iii) a person appointed as an administrator of a credit union by virtue of section 137 of the Credit Union Act 1997 or appointed to act as a provisional administrator of a credit union by virtue of section 138 of that Act,

(iv) a special manager appointed pursuant to the Credit Institutions (Stabilisation) Act 2010,

(v) an examiner, liquidator, receiver, official assignee, or

(vi) in respect of a person outside the State, a person corresponding to any of the persons who come within subparagraphs (i) to (v),

and

(b) a person who—

(i) is or has been an officer or employee or agent of any person to whom this Part applies, or

(ii) appears to the Bank or the authorised officer to have the information in his or her possession or under his or her control.

Appointment of authorised officers.

57.— (1) For the purposes of obtaining any information necessary for the performance by the Bank of its functions under financial services legislation relating to the proper and effective regulation of financial service providers, the Bank may appoint any of its officers or employees or other suitably qualified persons to be authorised officers and to exercise any of the powers conferred by this Part.

(2) The Bank may revoke any appointment made by it under subsection (1).

(3) An appointment or revocation under this section shall be in writing.

(4) A person’s appointment by the Bank as an authorised officer ceases on the earlier of—

(a) the revocation by the Bank of the appointment,

(b) in a case where the appointment is for a specified period, the expiration of the period,

(d) in the case where the person is an officer or employee of the Bank—

(i) on the resignation of the person as an officer or employee of the Bank, or

(ii) on the termination of the person's employment with the Bank, or when the person’s term of office ceases, for any reason.

(5) In this section ‘suitably qualified person’ means any person (other than an officer or employee of the Bank) who, in the opinion of the Bank, has the qualifications and experience necessary to exercise the powers conferred on an authorised officer by this Part.

Warrant of appointment.

58.— Every authorised officer appointed by the Bank shall be furnished with a warrant of his or her appointment, and when exercising a power conferred by this Part shall produce such warrant or a copy of it, together with a form of personal identification, for inspection if requested to do so by a person affected by the exercise of the power.

Power of authorised officer to enter premises.

59.— (1) Subject to subsection (2), an authorised officer may at all reasonable times enter any premises—

(a) which the authorised officer has reasonable grounds to believe are or have been used for, or in relation to, the business of a person to whom this Part applies, or

(b) at, on or in which the authorised officer has reasonable grounds to believe that records relating to the business of a person to whom this Part applies are kept.

(2) An authorised officer shall not enter a dwelling, otherwise than—

(a) with the consent of the occupier, or

(b) pursuant to a warrant under section 61.

Powers of authorised officer.

60.— (1) An authorised officer may do any one or more of the following:

(a) search and inspect premises entered under section 59 or pursuant to a warrant under section 61;

(b) require any person to whom this Part applies who apparently has control of, or access to, records, to produce the records;

(d) take copies of or extracts from records so produced or found;

(e) subject to subsection (3), take and retain records so produced or found for the period reasonably required for further examination;

(f) secure, for later inspection, any records produced or found and any data equipment, including any computer, in which those records may be held;

(g) secure, for later inspection, premises entered under section 59 or pursuant to a warrant under section 61, or any part of such premises, for such period as may reasonably be necessary for the purposes of the exercise of his or her powers under this Part, but only if the authorised officer considers it necessary to do so in order to preserve for inspection records that he or she reasonably believes may be kept there;

(h) require any person to whom this Part applies to answer questions and to make a declaration of the truth of the answers to those questions;

(i) require any person to whom this Part applies to provide an explanation of a decision, course of action, system or practice or the nature or content of any records;

(j) require a person to whom this Part applies to provide a report on any matter about which the authorised officer reasonably believes the person has relevant information;

(k) require that any information given to an authorised officer under this Part is to be certified as accurate and complete by such person or persons and in such manner as the Bank or the authorised officer may require.

(2) Where records are not in legible form, an authorised officer, in the exercise of any of his or her powers under this Part, may—

(a) operate any data equipment, including any computer, at the premises which is being searched or cause any such data equipment or computer to be operated by a person accompanying the authorised officer, and

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