The Department of Finance, in collaboration with the Central Bank of Ireland, is publishing a consultation paper to consult on potential changes to the funding of the resolution regime for credit unions.
Each year the Department of Finance prepares the annual Resolution Fund Regulations following consultation with the Central Bank and the Credit Union Advisory Committee (CUAC). These regulations come into force on 30 September each year and prescribe the rate of contribution or method of calculating the rate of contribution to the Resolution Fund.
The Consultation Paper sets out proposed changes to the target level of the Resolution Fund, along with a timeline for achieving the target level. It is proposed that the target size of the fund should be set at €65 million (there is currently €35 million in the fund), and that this target should be met by 2024. Assuming no material resolution actions occur, the levy to be raised annually would be a fixed quantum of €6 million per annum until 2024. The impact of the proposal would be a 35 per cent reduction in the Resolution Fund levy rate for 2020 compared to 2019 - a reduction from 0.0511 per cent of total assets (which generated almost €9 million) to 0.033 per cent.
This consultation is now open to all persons and the Minister for Finance, Mr Paschal Donohoe T.D., would strongly encourage all stakeholders to submit feedback.
The deadline for submissions is Friday, 09th August 2019.
Once the deadline for the consultation has closed, the Department, in collaboration with the Central Bank, will consider the feedback received as part of this consultation process prior to finalising changes to the Resolution Funding regime for credit unions. Following on from this, a statutory instrument will be published in October 2019 detailing the 2020 Resolution Fund levy for credit unions.
Submissions should be marked “Resolution Fund Consultation” and sent by email to firstname.lastname@example.org
In the event that a person is unable to send a submission electronically, they may forward it by post to:
Credit Union Policy Team
Department of Finance
50-58 Baggot Street Lower
Dublin 2, D02 XW14