Ongoing Compliance for Credit Unions

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

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. 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).

The Central Bank recommends that credit unions carry out an audit on an annual basis of persons performing CFs or PCFs.

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 ONR.

Credit unions are required to submit the following updates through the ONR:

• 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 PCF Information Guidance (including Instructions) which details how to complete such notifications.

Quick "How To" guides are also available to assist you in completing your return.

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 is included in the Annual Return which can be accessed through the ONR.

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. Resignation notifications for individuals approved as PCF Holders must be submitted through the ONR.

Credit unions should refer to our PCF Resignation Guidance (including Instructions) which details the requirements of the Central Bank for such notifications. A quick "How To-Resignation" guide is also available to assist you in completing your return.

Where an in situ PCF resigns, the credit union should notify their supervisory team in the Central Bank without delay of the resignation. Please contact your supervisory team via [email protected].