Ongoing Compliance for Credit Unions

Note: The information on this page applies to the Credit Union sector only.

Continuing Obligation to Comply

The 2010 Act prescribes a continuing obligation on credit unions in relation to fitness and probity due diligence. Credit unions are responsible for ensuring that individuals performing CFs or PCFs meet the F&P Standards, both prior to appointment and on an ongoing basis, and for certifying same. The Central Bank suggests that credit unions require individuals  performing CFs or PCFs to undertake to notify the credit unions of any material changes in respect of initial due diligence carried out (see suggested agreement at Appendix 2 of the Guidance on Fitness and Probity for Credit Unions).

Where a credit union becomes aware that there may be concerns regarding the fitness and probity of an individual performing a CF or PCF the Central Bank expects the credit union to investigate such concerns and take action as appropriate without delay.

The credit union should notify the Central Bank without delay of any action taken.

Non-compliance with the Standards and Section 21 of the Central Bank Reform Act 2010

The Central Bank has a range of powers available to it to investigate, suspend, or prohibit individuals from PCF and CF roles in the credit union sector where concerns arise about their fitness and probity. Those powers are set out in Part 3 of the Central Bank Reform Act 2010 and Guidance on Fitness and Probity for Credit Unions.

Section 21 of the Central Bank Reform Act 2010 provides that a credit union shall not permit a person to perform a CF (including those prescribed as PCFs) unless it is satisfied on reasonable grounds that the person complies with the F&P Standards  and the person has agreed to abide by those Standards.

PCF Holder Information

Credit unions have the facility to view all PCF holders associated with the credit union via the Central Bank Portal, i.e. current and previous PCF holders.

Credit unions are required to submit the following updates through the Central Bank Portal:

• An effective start date (in the case of a manager, risk management officer, head of internal audit and head of finance)
• Confirmation of election date of a recently approved person i.e. the AGM (in the case of a chair)
• Residential address and/or
• Contact details
• Confirmation of an applicant not taking up a role (e.g. where a person approved for the role of chair by the Central Bank is subsequently not elected at the AGM).

Credit unions should refer to our Fitness and Probity Individual Questionnaire, Applications and PCF Roles Guidance which details how to complete such notifications.

Resignations of holders of PCFs

Credit unions are required to notify the Central Bank without delay of the resignation of an individual who has been approved as a PCF holder, including in-situ PCF holders. Resignation notifications for individuals approved as PCF Holders must be submitted through the Central Bank Portal.

Credit unions should refer to our Fitness and Probity Individual Questionnaire, Applications and PCF Roles Guidance which details the requirements of the Central Bank for such notifications.

Where an in situ PCF resigns, the credit union should notify their supervisory team in the Central Bank without delay of the resignation. 

Individuals Subject to Re-Election/Re-Appointment

Individuals who were in situ at the time the Fitness and Probity requirements were introduced for their PCF role(s) will be required to submit an IQ if they are subject to re-election/re-appointment.

Once an individual has been approved to a role that is subject to re-election/re-appointment provisions, the approval given states that he/she shall not be required to undergo the approval process again as long as he/she remains in that role. However, the board of directors is required to confirm to the Central Bank upon re-election/re-appointment that his/her circumstances have not changed since pre-approval was granted. This will be done as part of the Annual PCF Confirmation Return.

Further information is provided in the Guidance on Fitness and Probity for Credit Unions

Annual PCF Confirmation Return

The Annual PCF Confirmation return for credit unions is included in the Annual Return which can be accessed via the Central Bank Portal. 

Temporary Officers

If a PCF role holder is unable to perform their role due to unforeseen circumstances, the firm can seek to have another suitable individual perform that role for a limited period. This requires prior agreement of the Central Bank pursuant to Regulation 10 of the Central Bank Reform Act, 2010 (Sections 20 and 22 – Credit Unions) Regulations 2013 [S.I. No. 171 of 2013]. The steps that the firm must take are as follows:

The firm should refer to its succession and contingency plan in the first instance and identify a suitable individual to perform the PCF role which has become temporarily vacant.

The firm should contact the Central Bank to state that they wish to make a temporary appointment. In their contact, firms should:

Outline the circumstances that have given rise to the need for the temporary appointment.

Provide confirmation that the firm is satisfied on reasonable grounds that the person complies with the Fitness and Probity (F&P) Standards. In providing this confirmation, the firm should consider time commitments and other roles that the proposed temporary officer may already be performing.

Provide confirmation that the person has agreed to abide by the F&P Standards and will continue to do so whilst performing the PCF role.

Outline the period of time for which the appointment is requested (which should normally not extend past three months).

No Individual Questionnaire is required to be submitted in respect of an application for the appointment of a temporary officer.

If the Central Bank agrees to the request in light of the exceptional circumstances, a letter will issue to the firm regarding the appointment.

The firm should keep the situation under review and inform the Central Bank of any changes in respect of the appointment.

Section 5.6 of the Guidance on Fitness and Probity for Credit Unions  for Credit Unions provides further information.