Rule Amendment Processing

All credit unions have a set of rules that set out the operating principles of the credit union. When a credit union wants to change a rule, it must pass a resolution at an Annual General Meeting (AGM) or Special General Meeting (SGM) at which two-thirds of those present vote for the change.

The most common types of rule amendments include amendments arising from:

  1. Standard Irish League of Credit Unions (ILCU) rule changes – applicable to ILCU affiliated credit unions from motions passed at ILCU AGMs;
  2. Changes to number of Principal Officers (e.g. number of directors/supervisors);
  3. Changes to the Common Bond; and
  4. Changes to Additional Services.

Process for Changes to a Registered Rule

Where a credit union is considering an amendment to its registered rules, it is recommended that the credit union should consider obtaining a preliminary view from the Central Bank in relation to the proposed amendment, in advance of a notice of rule change being circulated to members. An application for a preliminary view will be most suitable for particular types of rule amendments e.g. rule amendments relating to changes to the credit union’s common bond (further details provided below). However, it may not be necessary for more routine rule amendments e.g. for change of address or adjusting the number of directors.

When considering an amendment, credit unions should follow these steps:

  1. The credit union should contact its supervisor;
  2. The supervisor may ask the credit union to submit a Preliminary View Application (PVA) Form (a sample form is provided below);
  3. The PVA Form should include information on the proposed rule amendment;
  4. On receipt of a PVA Form, the Central Bank will consider the preliminary view application and will revert to the credit union with its preliminary view; and
  5. This view should inform the credit union’s decision on whether to present a resolution at an AGM or SGM.

Registration of Rule Amendment

After the preliminary view application process (if required) is complete and the resolution has been passed, the credit union must then forward the rule amendment to the Registry of Credit Unions (RCU) with all relevant documentation for registration. Rule amendments must be in accordance with the provisions of the 1997 Act, and are not valid until they have been registered.

  1. Section 14(2) of the 1997 Act sets out that two copies of the amendment, signed by four members, one of whom shall be the secretary and another a director, shall be submitted to the Central Bank.
  2. Under Section 14(3A) of the 1997 Act, before sending a copy of the amended rules to the Central Bank the Credit Union is required to satisfy itself that the amendment is not contrary to financial services legislation.

If the Central Bank is satisfied that an amendment of a credit union’s rules sent to it is not contrary to financial services legislation, the Central Bank shall issue to the credit union, within 3 months of receipt of the amendment, an acknowledgement of registration. If the Central Bank is not satisfied that an amendment of a credit union’s rules sent to it is not contrary to financial services legislation the Central Bank shall refuse to register the amendment. In such cases the Central Bank shall give the credit union a notice of its refusal to register the amendment including a statement setting out the grounds for the refusal.

Standard Preliminary View Application (PVA) Form | pdf 499 KB

Common Bond Rule Amendments

RCU have developed a common bond rule amendment Preliminary View Application (PVA) Form and an Explanatory Note in relation to common bond rule amendments.
When considering a common bond rule amendment, credit unions should follow these steps:

  1.  The credit union should contact its supervisor;
  2.  The supervisor will ask the credit union to submit the relevant PVA Form;
  3.  The PVA Form should include information on the proposed new common bond and the rationale for extension or amendment of the existing common bond; along with

a) Details of how the proposed common bond complies with section 6 of the 1997 Act, including identifying the type of common bond under section 6(3);

b) The business case (including alignment with the strategic plan and demonstrating that the credit union has the capacity and resources required to support with extension or amendment);

c) A risk assessment; and

d) Details of operational capability.

On receipt of a PVA Form, the Central Bank will consider the preliminary view application and will revert to the credit union.

Common Bond Preliminary View Application (PVA) Form | pdf 616 KB Explanatory Note | pdf 619 KB