Michael Noonan (Limerick City, Fine Gael)
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This section gives effect to recommendations of the report of the Commission on Credit Unions relating to investments, chapters 10.3.22 to 10.3.24, inclusive. It substitutes a new section 43 of the 1997 Act which outlines the overriding principles with which a credit union must comply in managing its investments, including the need to avoid undue risk to members' savings as well as the need to consider the impact on liquidity and the financial position of the credit union. This section also provides that the Central Bank may prescribe certain investments in which credit unions may invest funds which are surplus to operating requirements and not immediately required by the credit union. The Central Bank may preserve ancillary matters concerning these investments including the classes and quality of investments, the maximum amounts in which the credit unions may invest and the distribution policy to be applied to any investment income. The Central Bank may also make regulations for the distribution policy of any investment income. The Central Bank would not allow investment in a particular high-risk instrument such as that referred to by the Deputy.