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Credit Union Bill 2012: From the Seanad (Continued)

Thursday, 13 December 2012

Dáil Éireann Debate
Vol. 786 No. 3

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  Seanad amendment No. 171:



    Schedule: In page 88, between lines 37 and 38 to insert the following:

    "
    80

    Section 87(2)(c)


    Substitute:

    “(c) that, since the registration of the credit union, the factors taken into account in granting registration have so changed that, if the society were now applying for registration, it would be refused; or

    (d) that the credit union has failed to comply with any terms and conditions imposed by the Bank under section 66(5) of the Credit Union Act 2012 relating to the provision of stabilisation support under this Act.”.
".

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes Amendment 171 made in the Seanad inserts a new paragraph (d) into section 87(2) of the 1997 Act which allows the Central Bank to impose a regulatory direction on a credit union under section 87 where that credit union fails to comply with the terms and conditions of any stabilisation support given to the credit union under this Bill. This is necessary to ensure that conditions imposed in return for financial support to keep the credit union afloat are enforceable. These could be called the troika conditions. This direction will be appealable to the Irish Financial Services Appeals Tribunal under section 52 of the 1997 Act.

  Seanad amendment agreed to.

  Seanad amendment No. 172:

Schedule: In page 90, item 100, line 43, to delete “Supervisory Authority” and substitute “Irish Auditing and Accounting Supervisory Authority”.

  Seanad amendment agreed to.

  Seanad amendment No. 173:



    Schedule: In page 93, between lines 16 and 17 to insert the following:

    "
    134 Section 182(1)(k) Delete.
    135 section 182(1)(m) Delete.
                                                                                                                                                                                                                                                               ".

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes This amendment removes the ministerial regulation-making powers that existed under section 182 of the 1997 Act, as these powers conflict with the bank's regulation-making powers under the Bill and are more appropriate for the Central Bank. These relate to the registration procedures and operations of credit unions.

  Seanad amendment agreed to.

  Seanad amendment No. 174:



    Schedule: In page 93, between lines 45 and 46, to insert the following:

    "
    140 First Schedule Insert after paragraph 13:

    "14. Provision for dealing with directors and members of the board oversight committee who are more than 90 consecutive days in arrears under a debt obligation to the credit union up to and including the suspension or removal from the board of such directors.".
                                                                                                                                                                                                                                                ".

  Seanad amendment agreed to.

  Seanad amendment No. 175:



    New Schedules: In page 93, after line 49, to insert the following new Schedule:
    "SCHEDULE 2

    AMENDMENTS TO CERTAIN ACTS AND STATUTORY INSTRUMENTS

    PART 1

    AMENDMENTS TO CERTAIN ACTS
    Item

    (1)
    Number and year

    (2)
    Short title

    (3)
    Extent of repeal

    (4)


    1


    No. 24 of 1971


    Central Bank Act 1971


    Section 17A


    2


    No. 3 of 1989


    Insurance Act 1989


    Sections 59 and 60


    3


    No. 17 of 1989


    Building Societies Act 1989


    Section 41


    4


    No. 21 of 1989


    Trustee Savings Banks Act 1989


    Section 24A


    5


    No. 24 of 1994


    Investment Limited Partnerships Act 1994


    Section 25(2)


    6


    No. 11 of 1995


    Investment Intermediaries Act 1995


    Sections 9(3), 64 and 65


    7


    No. 8 of 1997


    Central Bank Act 1997


    Sections 36G, 36H, 36I, 75 and 76


    8


    No. 47 of 2001


    Asset Covered Securities Act 2001


    Section 70
    PART 2

    AMENDMENTS TO CERTAIN STATUTORY INSTRUMENTS
    Item

    (1)
    Number and year

    (2)
    Citation

    (3)
    Extent of revocation

    (4)


    1


    S.I. No. 13 of 2005


    European Communities (Insurance Mediation) Regulations 2005


    Regulations 28, 29, 30 and 31


    2


    S.I. No. 380 of 2006


    European Communities (Reinsurance) Regulations 2006


    Regulations 72, 73, 74 and 75


    3


    S.I. No. 60 of 2007


    European Communities (Markets in Financial Instruments) Regulations 2007


    Regulations 163, 164 and 165


    4


    S.I. No. 383 of 2009


    European Communities (Payment Services) Regulations 2009


    Regulations 99, 100, 101, 102 and 110


    5


    S.I. No. 183 of 2010


    European Communities (Cross Border Payments) Regulations 2010


    Regulations 6, 7, 8, 9, 10, 11 and 12


    6


    S.I. No. 183 of 2011


    European Communities (Electronic Money) Regulations 2011


    Regulations 62, 63, 64, 65 and 72
                                                                                                                                                                                                                                                       ".

  Seanad amendment agreed to.

  Seanad amendment No. 176:



    New Schedules: In page 93, after line 49, to insert the following new Schedule:

    “SCHEDULE 3

    AMENDMENTS OF CENTRAL BANK ACTS
    PART 1

    AMENDMENTS OF CENTRAL BANK ACT 1971
    Item

    (1)
    Provision affected

    (2)
    Amendment

    (3)


    1


    Section 2(1)


    In paragraph (d) of the definition of “related body” delete “section 17A” and substitute “Part 5 of the Central Bank Reform Act 2010”.


    2


    Section 58(1)


    Delete “17A,”.
    PART 2

    AMENDMENTS OF CENTRAL BANK ACT 1997
    Item

    (1)
    Provision affected

    (2)
    Amendment

    (3)


    1


    Section 28


    (a) Substitute the following for the definition of “authorisation”:

    “ ‘authorisation’ means an authorisation under this Part authorising a person to carry on a regulated business;”.

    (b) Delete the definition of “inspector”.

    (c) In the definition of “retail credit firm”—

    (i) substitute “paragraph (e)” for “paragraph (g)”, and

    (ii) substitute “section 2(1)” for “section 3”.


    2


    Section 32A(5)(b)


    After “officer” insert “appointed under “Part 5 of the Central Bank Reform Act 2010”.
                                                                                                                                                                                                                                                                 ".

  Seanad amendment agreed to.

  Seanad amendment No. 177:



    New Schedules: In page 93, after line 49, to insert the following new Schedule:

    “SCHEDULE 4

    AMENDMENTS OF CERTAIN OTHER ACTS
    PART 1

    AMENDMENTS OF BUILDING SOCIETIES ACT 1989
    Item

    (1)
    Provision affected

    (2)
    Amendment

    (3)


    1


    Section 119(1)(a)


    (a) In subparagraph (v) substitute “section 41A” for “sections 41 or 41A”.(b) Delete subparagraph (vii).
    PART 2

    AMENDMENT OF TRUSTEE SAVINGS BANKS ACT 1989
    Item

    (1)
    Provision affected

    (2)
    Amendment

    (3)


    1


    Section 62(1)


    Delete “24A,”.


    PART 3

    AMENDMENT OF INVESTMENT LIMITED PARTNERSHIPS ACT 1994
    Item

    (1)
    Provision affected

    (2)
    Amendment

    (3)


    1


    Section 25(4)


    In paragraph (a) delete the definition of “appropriate person”.

PART 4

AMENDMENTS OF CONSUMER CREDIT ACT 1995
Item

(1)
Provision affected

(2)
Amendment

(3)


1


Section 8G(1)


(a) In the definition of “authorised officer” substitute “8M” for “8L”.

(b) Delete the definition of “responsible authority”.


2


Section 8M


(a) In subsection (1) substitute “The Minister” for “A responsible authority”.

(b) In subsection (3) substitute “The Minister” for “A responsible authority”.

(c) In subsection (5)—

(i) in paragraph (a) substitute “the Minister” for “the responsible authority concerned”, and

(ii) in paragraph (c) substitute “the Minister” for “the responsible authority”.
PART 5

AMENDMENTS OF INVESTMENT INTERMEDIARIES ACT 1995


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Section 2(1)


Substitute the following for the definition of “authorised officer”:

“ ‘authorised officer’ means a person appointed to be an authorised officer under Part 5 of the Central Bank Reform Act 2010;”.


2


Section 20(6)


Substitute “section 19 of this Act and Part 5 of the Central Bank Reform Act 2010” for “sections 19 and 65 of this Act”.


3


Section 79(1)


Substitute “21(10)” for “21(9)”.


PART 6

AMENDMENTS OF CREDIT UNION ACT 1997


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Section 90


Substitute the following for section 90:

“90.—(1) In this section and section 91 ‘authorised officer’ means an authorised officer appointed under Part 5 of the Central Bank Reform Act 2010.

(2) The Bank may appoint an authorised officer to carry out an inspection and to provide a report of the inspection to the Bank.

(3) An authorised officer may, for the purposes of carrying out an inspection, exercise any of the powers conferred on an authorised officer under Part 5 of the Central Bank Reform Act 2010.”.


2


Section 91


(a) Substitute the following for subsections (1) and (2):

“(1) If required to do so by notice in writing served by the Bank at any time—

(a) a credit union,

(b) any person who is or has been an officer, member, agent or liquidator of a credit union, and

(c) any other person who has in his or her possession or power any books or documents relating to a credit union, shall furnish to the Bank such books or documents which relate to the credit union and are in his possession or power and such information relating to the business of the credit union as may be specified in the notice and as may be reasonably required by the Bank in the exercise of its powers under this Act.

(2) If required to do so by a notice in writing served on it by the Bank, a credit union shall furnish to the Bank a financial statement or periodic financial statements in such form and containing such information as may be specified in the notice and as may be reasonably required by the Bank in the exercise of the powers of the Bank under this Act.”.

(b) Substitute the following for subsection (4):

“(4) The Bank may take copies of or extracts from any item produced in compliance with a notice under subsection (1) or (2) and, if so required by the Bank, the person on whom a notice under subsection (1) was served or, in the case of a statement produced in compliance with a notice under subsection (2), a person who is or has been an officer, member, agent or liquidator of the credit union shall provide any explanation which may reasonably be required of an item so produced.”.


PART 7

AMENDMENTS OF INVESTOR COMPENSATION ACT 1998


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Section 9


Substitute the following for section 9:

“(1) In this section ‘Act of 2010’ means the Central Bank Reform Act 2010.

(2) Where the supervisory authority forms the view that an insurance intermediary may be unable to repay money belonging to a client of the insurance intermediary, the supervisory authority may appoint an authorised officer under Part 5 of the Act of 2010 to investigate whether the insurance intermediary is unable to repay money or otherwise discharge its obligations towards clients of the insurance intermediary and to make a report to the supervisory authority in respect of the insurance intermediary.

(3) In relation to investment firms, an inspector appointed under the European Communities (Markets in Financial Instruments) Regulations 2007 (S.I. No 60 of 2007) shall, for the purposes of this section, have the powers conferred on an authorised officer appointed under Part 5 of the Act of 2010.

(4) In relation to investment firms which are credit institutions, an inspector appointed under section 45 of the Building Societies Act 1989 shall, for the purposes of this section, have the powers conferred on an authorised officer appointed under Part 5 of the Act of 2010.

(5) In relation to investment firms which are investment business firms, an inspector appointed under section 66 or 73 of the Investment Intermediaries Act 1995 shall, for the purposes of this section, have the powers conferred on an authorised officer appointed under Part 5 of the Act of 2010.”.


2


Section 33(2)


(a) Substitute “Part 5 of the Central Bank Reform Act 2010” for “the Act of 1995 and the European Communities (Markets in Financial Instruments) Regulations 2007”.

(b) Substitute “Part of that Act” for “Act and those Regulations”.
PART 8

AMENDMENT OF ASSET COVERED SECURITIES ACT 2001


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Section 98


In paragraph (a) delete “or any person authorised by it to perform the relevant function on its behalf,”.
                                                                                                                                                                                                                                                          ".

  Seanad amendment agreed to.

  Seanad amendment No. 178:



    New Schedules: In page 93, after line 49, to insert the following new Schedule:

“SCHEDULE 5

AMENDMENTS TO CERTAIN STATUTORY INSTRUMENTS
PART 1

AMENDMENTS OF EUROPEAN COMMUNITIES (DISTANCE MARKETING OF CONSUMER FINANCIAL SERVICES) REGULATIONS 2004

(S.I. No. 853 of 2004)
Item

(1)
Provision affected

(2)
Amendment

(3)


1


Regulation 25


In paragraph (1) substitute “competent authority (other than the Bank)” for “competent authority”.


2


Regulation 26


In paragraph (1) substitute “competent authority (other than the Bank)” for “competent authority”.
PART 2

AMENDMENT OF EUROPEAN COMMUNITIES (INSURANCE MEDIATION) REGULATIONS 2005

(S.I. No. 13 of 2005)
Item

(1)
Provision affected

(2)
Amendment

(3)


1


Regulation 3(1)


Delete the definition of “authorised officer”.


PART 3

AMENDMENT OF EUROPEAN COMMUNITIES (REINSURANCE) REGULATIONS 2006

(S.I. No. 380 of 2006)


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Regulation 3(1)


Delete the definition of “authorised officer”.


PART 4

AMENDMENTS OF EUROPEAN COMMUNITIES (MARKETS IN FINANCIAL INSTRUMENTS) REGULATIONS 2007

(S.I. No. 60 of 2007)


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Regulation 3(1)


Substitute the following for the definition of “authorised officer”:

“ ‘authorised officer’ means an authorised officer appointed under Part 5 of the Central Bank Reform Act 2010”.


2


Regulation 6(7)


Substitute “Part 5 of the Central Bank Reform Act 2010” for “Regulation 164”.


3


Regulation 14(1)


In subparagraph (b) insert “appointed under Part 5 of the Central Bank Reform Act 2010” after “authorised officer”.


4


Regulation 147(1)(g)(ii)


Substitute “Part 5 of the Central Bank Reform Act 2010” for “Regulation 164”.


5


Regulation 174(1)


Delete “an authorised officer or”.
PART 5

AMENDMENTS OF EUROPEAN COMMUNITIES (INSURANCE AND REINSURANCE GROUPS SUPPLEMENTARY SUPERVISION) REGULATIONS 2007

(S.I. No. 366 of 2007)


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Regulation 3(1)


Substitute the following for the definition of “authorised officer”:

“ ‘authorised officer’ means an authorised officer appointed under Part 5 of the Central Bank Reform Act 2010;”.


2


Regulation 9


(a) Substitute the following for paragraph (5):

“(5) If, in a particular case, the Bank wishes to verify information concerning an insurer or reinsurer located in another Member State and the insurer or reinsurer is an associate of an insurer or reinsurer that both holds an authorisation issued by the Bank and is subject to supplementary supervision, the Bank shall request the competent authority of that other Member State to have that verification carried out by that authority or an officer appointed by it.”.

(b) In paragraph (7) insert “under Part 5 of the Central Bank Reform Act 2010” after “authorised officer”.


PART 6

AMENDMENTS OF EUROPEAN COMMUNITIES (CREDIT INSTITUTIONS)(CONSOLIDATED SUPERVISION) REGULATIONS 2009

(S.I. No. 475 of 2009)


Item

(1)
Provision affected

(2)
Amendment

(3)


1


Regulation 20


Substitute the following for Regulation 20:

“20. (1) Section 18 of the Central Bank Act 1971 (No. 24 of 1971) applies to and in relation to a credit institution that is subject to consolidated supervision by the Bank as if—

(a) references in that section to a holder of a licence under that Act were references to the credit institution, and

(b) references in that section to a related body of a holder of such a licence were references to an associated enterprise of the credit institution.

(2) Section 41A of the Building Societies Act 1989 (No. 17 of 1989) applies to and in relation to a building society that is subject to consolidated supervision by the Bank as if references in that section to a related body of a building society were references to an associated body of the building society.

(3) Section 25 of the Trustee Savings Bank Act 1989 (No. 21 of 1989) applies to and in relation to a credit institution that is subject to consolidated supervision by the Bank as if references in that section to a trustee savings bank were references to the credit institution.”.


PART 7

AMENDMENT OF EUROPEAN COMMUNITIES (CROSS BORDER PAYMENTS) REGULATIONS 2010

(S.I. No. 183 of 2010)
Item

(1)
Provision affected

(2)
Amendment

(3)


1


Regulation 2(1)


Delete the definitions of “relevant records” and “search warrant”.
                                                                                                                                                                                                                                                     ".

  Seanad amendment agreed to.

  Seanad amendment No. 179:

Title: In page 5, lines 21 to 24, to delete all words from and including "TO" in line 21 down to and including "MATTERS" in line 24 and substitute the following:
"TO PROVIDE FOR MISCELLANEOUS MATTERS RELATING TO CREDIT UNIONS; TO AMEND THE CENTRAL BANK ACTS 1942 TO 2011, TO PROVIDE FOR CO-OPERATION BETWEEN THE CENTRAL BANK OF IRELAND AND OVERSEAS REGULATORS AND TO PROVIDE FOR THE APPOINTMENT OF AUTHORISED OFFICERS BY THE CENTRAL BANK OF IRELAND; AND TO PROVIDE FOR MATTERS RELATED TO THE FOREGOING".

  Seanad amendment agreed to.

Acting Chairman (Deputy Olivia Mitchell): Information on Olivia Mitchell Zoom on Olivia Mitchell Agreement to Seanad amendments will be reported to the House and a message will be sent to Seanad Éireann acquainting it accordingly.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes I thank the Deputies opposite for the constructive role they played at all Stages of this legislation. I hope the Bill, which passes this House today and will now go to the President, ensures the great Irish credit union movement, which is a standard-bearer of volunteerism and financial support, will continue to flourish in the years ahead. The Bill is consistent with the report of the commission in setting out new standards and a roadmap for the development of the movement. I also thank the officials of the Department of Finance who have worked day and night to ensure this Bill could be passed by the end of the year.

  Seanad amendments reported.

  Sitting suspended at 5.15 p.m. and resumed at 5.30 p.m.


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