Tuesday, 8 April 2014

Update on Judicial Review Proceedings

We welcome the news that the proceedings are being withdrawn on the commitment from the Central Bank of Ireland to do new asset reviews in relation to all of the credit unions named in the judicial review litigation and a new understanding with the Central Bank of Ireland, which will explicitly involve the Irish League of Credit Unions (“ILCU”) in the regulatory affairs of its affiliated credit unions.

The terms of settlement of the litigation include an agreement that the Central Bank will conduct new asset reviews, and the publication of a letter of intent from the Central Bank of Ireland to the ILCU.  This result is a significant step forward for ILCU affiliated credit unions and commits the Central Bank of Ireland to a real and meaningful engagement with the ILCU and its affiliated credit unions, together with the opportunity to have the ILCU represent and/or assist those credit unions in their dealings with the Central Bank of Ireland.

ILCU affiliated credit unions are best served where the regulator works in conjunction with the ILCU and through this settlement, the Central Bank of Ireland acknowledges the unique role of the ILCU.

A significant purpose of this litigation was to achieve a new way of operating on the part of the Central Bank of Ireland which involves the ILCU and this has now been achieved.  This is a positive and very welcome development for ILCU affiliated credit unions and all those who want and need to have a healthy, vibrant and flourishing credit union movement.