Introduction for Credit Unions

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

The Fitness and Probity Regime applies to Credit Unions and to persons performing certain functions within a Credit Union. In 2013 the Central Bank issued regulations for credit unions (in accordance with the Central Bank Reform Act 2010) which identify the functions, referred to as Controlled Functions (CFs) and Pre-Approval Controlled Functions (PCFs), within a credit union that are subject to the Fitness and Probity Regime.

There are 2 CF positions set out in the 2013 Regulations:

• A function in relation to the provision of a financial service which is likely to enable the person responsible for its performance to exercise a significant influence on the conduct of the affairs of a credit union (CUCF-1); and
• A function in relation to the provision of a financial service which is related to ensuring controlling or monitoring compliance by a credit union with its relevant obligations (CUCF-2).

There are also 2 PCF positions set out in the 2013 Regulations:

• The office of chair of the board of the credit union (CUPCF-1), and
• The office of manager of the credit union (CUPCF-2).

Effective from 1 October 2024, linked to the application of the Minimum Competency Code (MCC) to credit unions for all activities which are within scope of the MCC, the Fitness and Probity 2023 (Amendment) Regulations for Credit Unions will introduce a further 6 CFs as follows:

A function in relation to the provision of a financial service which is likely to involve the person responsible for its performance in the provision of a financial service by a credit union in one or more of the following ways:

• Giving of advice to a member of a credit union, in the course of providing, or in relation to the provision of, the financial service (CUCF-3);
• Arranging, or offering to arrange, a financial service for a member of a credit union (CUCF-4);
• Assisting a member of a credit union in the making of a claim under a contract of insurance or reinsurance (CUCF-5);
• Determining the outcome of a claim arising under a contract of insurance or reinsurance (CUCF-6);
• Acting in the direct management or supervision of those persons who act for a credit union in providing the services referred to in subparagraphs (a) to (d) (CUCF-7); or
• Adjudicating on any complaint communicated to a credit union by a member in relation to the provision of a financial service (CUCF-8).

Credit Unions also authorised as Retail Intermediaries

In 2015 the Central Bank issued the Fitness and Probity 2015 Regulations for Credit Unions (in accordance with the Central Bank Reform Act 2010) which identify certain functions, referred to as CFs and PCFs, within credit unions that are also authorised as retail intermediaries, which are subject to the Fitness and Probity Regime.

Effective from 1 October 2024, the Fitness and Probity 2015 Regulations for Credit Unions will be revoked. Credit unions also authorised as retail intermediaries will continue to be within scope of the Fitness and Probity regime for credit unions.  For further information on the PCFs and CFs that will continue to apply to these credit unions, please see the Fitness and Probity 2023 (Amendment) Regulations for Credit Unions. 

Additional PCFs for credit unions with total assets of at least €100 million

In 2018 the Central Bank issued regulations (in accordance with the Central Bank Reform Act 2010) for credit unions with total assets of at least €100 million, according to the credit union’s latest audited accounts. From 1 July 2018, 3 additional roles are designated PCFs in such credit unions; these are:

• Risk Management Officer (CUPCF-3),
• Head of Internal Audit (CUPCF-4), and
• Head of Finance (CUPCF-5)

For further information on the additional PCFs that apply to credit unions with total assets of at least €100 million, please see the Fitness and Probity 2018 (Amendment) Regulations for Credit Unions.

Regulations:

Fitness and Probity 2013 Regulations for Credit Unions

Fitness and Probity 2015 Regulations for Credit Unions

Fitness and Probity 2018 (Amendment) Regulations for Credit Unions 

Fitness and Probity 2023 (Amendment) Regulations for Credit Unions 

The Central Bank Reform Act 2010 (Section 21(6)) Regulations 2024)

Statutory Codes