Credit Union and Co-operation with Overseas Regulators Act 2012


Number 40 of 2012


CREDIT UNION AND CO-OPERATION WITH OVERSEAS REGULATORS ACT 2012

REVISED

Updated to 22 October 2018


This Revised Act is an administrative consolidation of the Credit Union and Co-operation with Overseas Regulators Act 2012. It is prepared by the Law Reform Commission in accordance with its function under the Law Reform Commission Act 1975 (3/1975) to keep the law under review and to undertake revision and consolidation of statute law.

All Acts up to and including Markets in Financial Instruments Act 2018 (25/2018), enacted 29 October 2018, and all statutory instruments up to and including Credit Union Fund (Stabilisation) Levy Regulations 2018 (S.I. No. 441 of 2018), made 22 October 2018, were considered in the preparation of this Revised Act.

Disclaimer: While every care has been taken in the preparation of this Revised Act, the Law Reform Commission can assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided and does not accept any liability whatsoever arising from any errors or omissions. Please notify any errors, omissions and comments by email to

revisedacts@lawreform.ie.


Number 40 of 2012


CREDIT UNION AND CO-OPERATION WITH OVERSEAS REGULATORS ACT 2012

REVISED

Updated to 22 October 2018


Introduction

This Revised Act presents the text of the Act as it has been amended since enactment, and preserves the format in which it was passed.

Related legislation

Central Bank Acts 1942 to 2015: this Act is one of a group of Acts included in this collective citation ( Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (21/2015), s. 9(2)). The Acts in the group are:

Central Bank Act 1942 (22/1942)

Central Bank Act 1961 (8/1961) (repealed)

Central Bank Act 1964 (3/1964) (repealed)

Central Bank Act 1971 (24/1971)

Central Bank Act 1989 (16/1989), Part II

Central Bank Act 1997 (8/1997), other than ss. 3, 36 to 49, 60, 64 to 68, 78 to 83 and 85

Central Bank Act 1998 (2/1998)

Euro Changeover (Amounts) Act 2001 (16/2001), s. 5 and s. 9(4)

Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003)

Central Bank and Financial Services Authority of Ireland Act 2004 (21/2004)

National Asset Management Agency Act 2009 (34/2009), s. 1(4), s. 232 and sch. 3 part 2

Central Bank Reform Act 2010 (23/2010)

Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011)

Credit Union and Co-operation with Overseas Regulators Act 2012 (40/2012), ss. 36 , 37 , 48 (2) and 56(3), Part 5 (in so far as it amends the Central Bank Acts 1942 to 2011), and Schedules 2 and 3 (in so far as they amend any of those Acts)

Central Bank (Supervision and Enforcement) Act 2013 (26/2013), other than section 5, in so far as it relates to Schedules 3 and 4, and sections 75 to 78 , 80 to 87 and 89 to 94

Central Bank Act 2014 (9/2014), s. 1

Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (21/2015), other than s. 8

Credit Union Acts 1997 to 2018 : this Act is one of a group of Acts included in this collective citation, to be construed together as one ( Companies (Statutory Audits) Act 2018 (22/2018), s. 1(7)). The Acts in this group are:

Credit Union Act 1997 (15/1997)

Euro Changeover (Amounts) Act 2001 (16/2001), ss. 6 and 9(3)

Credit Union and Co-operation with Overseas Regulators Act 2012 (40/2012), other than ss. 36, 37, 48(2), and 56(3), Part 5 and Schedules 2-5

Companies (Statutory Audits) Act 2018 (22/2018), s. 72

Annotations

This Revised Act is annotated and includes textual and non-textual amendments, statutory instruments made pursuant to the Act and previous affecting provisions.

An explanation of how to read annotations is available at

www.lawreform.ie/annotations.

Material not updated in this revision

Where other legislation is amended by this Act, those amendments may have been superseded by other amendments in other legislation, or the amended legislation may have been repealed or revoked. This information is not represented in this revision but will be reflected in a revision of the amended legislation if one is available.

Where legislation or a fragment of legislation is referred to in annotations, changes to this legislation or fragment may not be reflected in this revision but will be reflected in a revision of the legislation referred to if one is available.

A list of legislative changes to any Act, and to statutory instruments from 1982, may be found linked from the page of the Act or statutory instrument at

www.irishstatutebook.ie.

Acts which affect or previously affected this revision

Data Protection Act 2018 (7/2018)

All Acts up to and including Markets in Financial Instruments Act 2018 (25/2018), enacted 29 October 2018, were considered in the preparation of this revision.

Statutory instruments which affect or previously affected this revision

Credit Union Fund (Stabilisation) Levy Regulations 2018 (S.I. No. 441 of 2018)

Credit Union Fund (Stabilisation) Levy Regulations 2017 (S.I. No. 561 of 2017)

Credit Union Fund (ReBo Levy) Regulations 2017 (S.I. No. 283 of 2017)

Credit Union Fund (ReBo Levy) Regulations 2016 (S.I. No. 585 of 2016)

Credit Union Fund (Stabilisation) Levy Regulations 2016 (S.I. No. 583 of 2016)

Credit Union and Co-operation with Overseas Regulators Act 2012 (Commencement of Certain Provisions) Order 2015 (S.I. No. 584 of 2015)

Credit Union Fund (ReBo Levy) Regulations 2015 (S.I. No. 557 of 2015)

Credit Union Fund (Stabilisation) Levy Regulations 2015 (S.I. No. 530 of 2015)

Credit Union Fund (ReBo Levy) Regulations 2014 (S.I. No. 581 of 2014)

Credit Union Fund (Stabilisation) Levy Regulations 2014 (S.I. No. 533 o f 2014)

Credit Union and Co-operation with Overseas Regulators Act 2012 (Commencement of Certain Provisions) Order 2014 (S.I. No. 99 of 2014)

Credit Union and Co-operation with Overseas Regulators Act 2012 (Commencement of Certain Provisions) (No. 2) Order 2013 (S.I. No. 393 of 2013)

Credit Union and Co-operation with Overseas Regulators Act 2012 (Commencement of Certain Provisions) Order 2013 (S.I. No. 280 of 2013)

Credit Union Restructuring Board (Establishment Day) Order 2012 (S.I. No. 558 of 2012)

Credit Union and Co-operation with Overseas Regulators Act 2012 (Commencement) Order 2012 (S.I. No. 557 of 2012)

All statutory instruments up to and including Credit Union Fund (Stabilisation) Levy Regulations 2018 (S.I. No. 441 of 2018), made 22 October 2018, were considered in the preparation of this revision.


Number 40 of 2012


CREDIT UNION AND CO-OPERATION WITH OVERSEAS REGULATORS ACT 2012

REVISED

Updated to 22 October 2018


ARRANGEMENT OF SECTIONS

PART 1

Preliminary and General

Section

1. Short title, construction and collective citation.

2. Commencement.

3. Definition.

4. Savers for regulatory actions of Bank.

5. Expenses.

PART 2

Amendments to Credit Union Act 1997 and Consequential Amendments, etc.

6. Amendment of section 2 (Interpretation) of Principal Act.

7. Supplemental provisions relating to registration, etc., under section 6 of Principal Act.

8. Savings.

9. Protection of members’ savings.

10. Borrowing.

11. Lending.

12. Investments.

13. Reserves.

14. Appeal against certain decisions of Bank.

15. Board of directors.

16. Operation of board of directors.

17. Functions of board of directors.

18. Chair of board of directors, etc.

19. Board committees.

20. Nomination committee.

21. Manager of credit union.

22. Credit officer and credit control officer.

23. Directors: suspension and removal by board oversight committee.

24. General governance requirements.

25. Conflicts of interest.

26. Additional requirements for credit unions.

27. Board oversight committee.

28. Special resolutions.

29. Power of Bank to make regulations.

30. Liquidity and stress testing, etc.

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

32. Removal of auditor of credit union by Bank.

33. General regulations by Bank.

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

35. Miscellaneous and consequential amendments to Principal Act.

36. Consequential amendments of the Central Bank Act 1942.

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

38. Revocation of statutory instruments.

PART 3

Restructuring

Preliminary and restructuring generally

Credit Union Restructuring Board

Credit Union Fund and Credit Union Levy

57. Credit Union Fund.

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

59. Credit union levy.

60. Arrangements for collection of credit union levies.

PART 4

Stabilisation

61. Interpretation ( Part 4).

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

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

64. Funding for stabilisation support.

65. Provision of stabilisation support.

66. Stabilisation Committee.

67. Expenses of Bank under Part 4.

PART 5

Miscellaneous Amendments relating to Central Bank Acts 1942 to 2011

68. Amendments to Central Bank Act 1942.

69. Amendment to Central Bank Reform Act 2010.

70. Amendments, repeals, revocations, savings and transitional provisions ( Part 5).

SCHEDULE 1

Miscellaneous and Consequential Amendments to Credit Union Act 1997

SCHEDULE 2

Amendments to Certain Acts and Statutory Instruments

PART 1

Amendments to Certain Acts

PART 2

Amendments to Certain Statutory Instruments

SCHEDULE 3

Amendments of Central Bank Acts

PART 1

Amendments of Central Bank Act 1971

PART 2

Amendments of Central Bank Act 1997

SCHEDULE 4

Amendments of Certain Other Acts

PART 1

Amendments of Building Societies Act 1989

PART 2

Amendment of Trustee Savings Banks Act 1989

PART 3

Amendment of Investment Limited Partnerships Act 1994

PART 4

Amendments of Consumer Credit Act 1995

PART 5

Amendments of Investment Intermediaries Act 1995

PART 6

Amendments of Credit Union Act 1997

PART 7

Amendments of Investor Compensation Act 1998

PART 8

Amendment of Asset Covered Securities Act 2001

SCHEDULE 5

Amendments to Certain Statutory Instruments

PART 1

Amendments of European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004

PART 2

Amendment of European Communities (Insurance Mediation) Regulations 2005

PART 3

Amendment of European Communities (Reinsurance) Regulations 2006

PART 4

Amendments of European Communities (Markets in Financial Instruments) Regulations 2007

PART 5

Amendments of European Communities (Insurance and Reinsurance Groups Supplementary Supervision) Regulations 2007

PART 6

Amendments of European Communities (Credit Institutions) (Consolidated Supervision) Regulations 2009

PART 7

Amendment of European Communities (Cross Border Payments) Regulations 2010



Number 40 of 2012


CREDIT UNION AND CO-OPERATION WITH OVERSEAS REGULATORS ACT 2012

REVISED

Updated to 22 October 2018



AN ACT TO AMEND CERTAIN PROVISIONS OF THECREDIT UNION ACTS 1997 AND 2001, IN PARTICULAR, TO AMEND THE PRUDENTIAL REQUIREMENTS FOR CREDIT UNIONS, TO CHANGE THE GOVERNANCE REQUIREMENTS FOR CREDIT UNIONS BY REMOVING CERTAIN MANAGEMENT FUNCTIONS FROM BOARDS OF DIRECTORS OF CREDIT UNIONS AND PROVIDING FOR A SEPARATE MANAGEMENT STRUCTURE AND TO IMPROVE THE OVERSIGHT AND GENERAL POLICY FUNCTIONS OF SUCH BOARDS OF DIRECTORS; TO PROVIDE FOR THE RESTRUCTURING OF CREDIT UNIONS AND FOR STABILISATION SUPPORT TO CREDIT UNIONS, TO PROVIDE FOR A FUND TO BE KNOWN AS THE CREDIT UNION FUND FOR THE PURPOSES OF SUCH RESTRUCTURING AND STABILISATION AND TO PROVIDE FOR LEVIES IN RESPECT OF THAT FUND; TO PROVIDE FOR MISCELLANEOUS MATTERS RELATING TO CREDIT UNIONS; TO AMEND THE CENTRAL BANK ACTS 1942 TO 2011, TO PROVIDE FOR CO-OPERATION BETWEEN THE CENTRAL BANK OF IRELAND AND OVERSEAS REGULATORS AND TO PROVIDE FOR THE APPOINTMENT OF AUTHORISED OFFICERS BY THE CENTRAL BANK OF IRELAND; AND TO PROVIDE FOR MATTERS RELATED TO THE FOREGOING.

[19 th December, 2012]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: