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- Employment Miscellaneous Provisions Act 2018
- Central Bank (Supervision and Enforcement) Act 2013</li>
- Parental Leave (Amendment) Act 2019
- Central Bank (Amendment) Bill
Employment Miscellaneous Provisions Act 2018 (No. 38, 2018)
The Act came into force on the 4th March 2019. By and large the Act will not impact on credit unions with the exception of one provision which credit unions should be aware of.
The 2018 Act amends the Terms of Employment (Information) Act 1994 and now requires that an employer provide the new employee with core terms of employment within 5 days of commencement of employment (known as the “Day 5” statement). The core terms of employment must set out:
- the full names of the employer and the employee;
- the address of the employer;
- the expected duration of the contract, in the case of a temporary contract, or the end date if the contract is a fixed-term contract;
- the rate or method of calculation of the employee’s pay;
- the number of hours the employer reasonably expects the employee to work per normal working day and per normal working week.
The other terms of employment, as required under the Terms of Employment (Information) Act 1994, will continue to be required within two months of the employee’s start date. Note: where a credit union provides the complete Employment Contract setting out all the required terms and conditions on or before the commencement of employment, the Employment Miscellaneous Provisions Act 2018 will have no additional impact on the credit union.
Click Here to view Employment Miscellaneous Provisions Act 2018
Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Housing Loan Requirements) (Amendment) Requirements 2019 (S.I. 369 of 2019)
Enacted on the 26th July 2019, this S.I. relates to the Central Bank’s permitted LTV and LTI rates and is relevant for credit unions offering mortgage lending. The S.I. introduces minor changes and does not impact on the existing LTV and LTI requirements, of which credit unions must comply with.
Application of the Regulations (2013-2019):
- The Regulations apply to a housing loan secured or to be secured on residential property.
- The Regulations do not apply to the refinancing of existing housing loans or switcher mortgages where that amount to be advanced under the new housing loan does not exceed the amount outstanding under the existing housing loan.
- Equity releases and top ups of existing mortgages are caught by the Regulations.
- Where an application is in joint names, and one has / previously had a mortgage, neither parties will be deemed to be a first time buyer i.e non-first time buyers LTV limits apply.
Summary of existing Regulatory Limits
Principal Dwelling Homes (PDH)
Non-first time buyers:
3.5 times gross annual income
First time buyers:
The lender can move outside these limits up to:
5% of new lending to FTB permitted above 90%
20% of new lending to non-FTBs permitted above 80%
The lender can move outside these limits up to:
20% of new mortgage lending to FTBs permitted above the LTI cap
10% of new mortgage lending to non-FTBs permitted above the LTI cap
A limit of 70% LTV
No LTI limit for BTL mortgages
The lender can move outside this limit up to:
10% of the total aggregate monetary amount of loans for such purposes
Click Here to view Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Housing Loan Requirements) (Amendment) Requirements 2019
Credit unions and property loans: Subject to the above, credit unions:-
- are permitted to provide lending for a Buy-to-Let (BTL) property under the category of “Commercial Loan”.
- are not permitted to provide a loan for the purpose of purchasing a Holiday Home (see Categories of Lending, Credit Union Act 1997 (Regulatory Requirement) Regulations 2016 (S.I. 1 of 2016)).
As CP125 currently reads, a loan for the purpose of purchasing a BTL or a Holiday Homes will be prohibited under the new Lending Regulations due in Q4.
Click Here to view Credit Union Act 1997 (Regulatory Requirement) Regulations 2016
Parental Leave (Amendment) Act 2019 (No. 11, 2019)
From 1st September 2019: Parental leave for parents of eligible children will increase from 18 weeks to 22 weeks
From 1 September 2020: Parental leave for parents of eligible children will increase from 22 to 26 weeks.
If an employee has already taken some, or all of the current entitlement of 18 weeks parental leave, that employee will be entitled to the extra eight weeks of parental leave, if your child is still eligible.
The age of an eligible child also increases from 8 to 12 years of age.
Click Here to view Parental Leave (Amendment) Act 2019 (No. 11, 2019)
Central Bank (Amendment) Bill
This is one to watch. Heads of Bills are expected before the end of the year and will be incorporated into a public consultation process. It will introduce new concepts relating to transparency and accountability, all of which increase the powers of the Central Bank. The Bill is on foot of a Central Bank Report 12 months ago on behaviour and culture in Irish Retail Banks.
The new concepts include:
Senior Executive Accountability Regime (SEAR)
Financial Services Providers will be obliged to identify where responsibility and decision-making lies within their organisation. Fines for failure to adhere to the accountability regime will be enforceable against individuals under the CBI’s administrative sanctions procedure.
The Central Bank will have powers to impose binding and enforceable obligations on Financial Services Providers and on individuals working within them on expected standards of conduct.
Enhanced Fitness & Probity Regime
The F&P regime will be enhanced to ensure it is aligned with and supports the Central Bank’s proposed individual accountability framework, as well as the conduct standards for individuals and organisations.
Breaking the ‘Participation Link’
It is proposed that the Central Bank will have the additional powers to enable them to take action against individuals on a stand-alone basis irrespective of whether the Central Bank can prove a contravention of financial services legislation against a Financial Services Provider.
CUDA will be monitoring this Bill closely and will be in discussion with the Dept of Finance prior to the public consultation process. We will keep you updated on the development of this Bill, which, if applicable to the credit union sector, will have a very damaging effect.
Network & Information Systems Directive
This Directive was transposed into Irish law in September 2018 by way of statutory instrument (S.I. 360 of 2018). CUDA has had a number of queries in relation to its application on credit unions, especially from credit unions contemplating the provision of digital services for their members. The Directive introduces cyber security measures and is targeted at medium / large organisations providing digital services. Credit unions are not covered by the scope of this Directive as:
- They do not fall within the definition of a Digital Service Provider
- The Directive does not apply to micro and small enterprises.
Click Here to view European Union (Measures for a High Common Level of Security of Network and Information Systems) Regulations 2018
If you require any further information or assistance in relation to any of the above legislation please do not hesitate to contact us (firstname.lastname@example.org).