In May 2017 The Central Bank of Ireland (the Central Bank) published a consultation paper to
consult on potential changes to the investment framework for credit unions.
To ensure the investment regulations remain appropriate for the sector, the Central Bank undertook to review the investment regulations in 2017. The purpose of this review was to consider the appropriateness and prudence of expanding the range of investment classes available to credit unions.
Under existing regulations, credit unions can invest in a range of specified investment classes. These include government securities, bank deposits, bank bonds and collective investment schemes made up of these instruments. These are subject to specified maturity and concentration limits.
The consultation paper sought views from credit unions and other sector stakeholders on the potential changes outlined, together with feedback as to whether there are additional investment classes appropriate for credit unions, taking account of the appropriate risk profile for such investments.
As part of this consulation process the AON has made a submission representing the interests of Owners Managment Companies (OMCs) and those living in Multi-Unit Developments (MUDs). Our submission is available at the link below.
AON-RCU Consultation Submission 27-06-2017