Regulation row between managers and ILCU
MANAGERS of credit unions have disagreed with the main representative body for the sector over how they should be regulated.
The Irish League of Credit Unions (ILCU) told an Oireachtas committee last month that its members should have an independent regulator separate from the Financial Regulator.
But yesterday the Credit Union Managers' Association (Cuma) told TDs and senators that regulation should remain with the Financial Regulator structure.
Cuma chairman Selina Gilleece said: "We believe that the importance of the registrar within the Financial Regulator framework should not be diminished in any way."
Last month league president, Mark Bailey, said new regulatory structures that are to be put in place to address lending excesses by banks will have an adverse effect on credit unions.
He said the league was concerned that the regulation of credit unions will be excessive, disproportionate and approached on the basis that 'one size fits all' in the measures which will be applied to every institution involved in the provision of financial services.
Ms Gilleece, who represents the professional managers of more than 400 credit unions nationwide, argued the unique not-for-profit nature of credit unions should be recognised but this could be done by regulation of the sector remaining within the Financial Regulator.