Ongoing Compliance for Credit Unions
Due to certain variations for different sectors, this content is only relevant for Credit Unions. Click here to find information for other sectors.
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 for Credit Unions, 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.
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).
- Change in residential address and/or
- Change in contact details
- Notification where the approved applicant is not taking up the 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
Enhancements to the F&P Regime under IAF (Individual Accountability Framework) Act 2023 require regulated firms, including credit unions, to proactively certify that individuals carrying out CF and PCF roles meet the Central Bank’s standards of F&P. The Certification Regulations have applied since 8 January 2024 and the first submission will be required in 2025.
Both the PCF Annual Confirmation and CF Annual Certification facility will be open on the Portal from 1 January 2025 and credit unions will have until 31 March annually to make their submissions.
[A link will be included here to relevant guidance in advance of 1 January 2025]
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, and certify, 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 comply with 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.
Guidance on Fitness and Probity for Credit Unions provides further information.