Central Bank extends knowledge and competence standards for credit unions

The Central Bank of Ireland, in a recent announcement dated 28 September 2023, introduced new requirements for specific activities undertaken by credit union staff. These requirements, collectively referred to as the „Standards,“ encompass the Minimum Competency Code 2017 and the Minimum Competency Regulations 2017. Importantly, these Standards will now apply to all credit union services that fall within their scope.
Credit union staff engaged in activities covered by these Standards, such as lending and term deposits, must meet prescribed minimum knowledge and competence standards. This move aims to ensure that credit union members enjoy a level of protection equivalent to consumers utilizing similar services from other financial institutions.
The development of these Standards involved extensive consultation with the credit union sector and is intended to enhance the skillset of credit union staff across Ireland. By applying these requirements, the Central Bank aims to bolster the knowledge and expertise within the credit union sector and improve the quality of services provided to members.
These Standards also extend to individuals performing specific Fitness and Probity Controlled Functions, leading to amendments in the Fitness and Probity Regulations for credit unions. The Minimum Competency changes are set to be implemented gradually, commencing on 1 October 2024, with a four-year transition period until 1 October 2028. During this transition, credit union staff engaged in relevant activities can make use of transitional arrangements to ensure compliance with the Standards and acquire the necessary qualifications. The Central Bank initiated these changes after consulting stakeholders in Consultation Paper 147, which was published in January 2022.
Previously, the Minimum Competency Standards only applied to credit unions when acting as retail intermediaries, specifically in the context of mortgage credit agreements. However, the 2023 Addendum expands the application of these Standards to cover all credit union activities falling under the code’s scope. This includes retail intermediation, mortgage credit agreements, and functions related to mortgage credit products. The Addendum also introduces amendments to definitions, minimum competency standards, transitional arrangements, and the list of recognized qualifications for credit union services, becoming effective from 1 October 2024.