Jack Chambers (Dublin West, Fianna Fail)
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The Minimum Competency Code (MCC) sets out minimum professional standards for persons providing certain financial services, in particular when dealing with consumers. The aim is to ensure that consumers obtain a minimum acceptable level of competence from individuals acting for, or on behalf of, regulated firms in the provision of advice and information and associated activities in connection with retail financial products.

The MCC reassures consumers that staff they interact with have the necessary knowledge and competence when advising on or selling retail financial products.

Since 3 January 2018, the Minimum Competency Code (MCC) 2017 and the Minimum Competency Regulations (MCR) 2017 have applied to credit unions:

• acting as retail intermediaries;
• when providing mortgage credit agreements in line with the knowledge and competence requirements of the Mortgage Credit Regulations 2016; and
• devising or creating mortgage credit products.

The Central Bank undertook a public consultation in January 2022, proposing to apply the MCC to certain credit union activities. The response to this consultation was broadly positive and the Central Bank concluded that the MCC should apply to in-scope credit union activities.

As a result, from 1 October 2024, the MCC will apply to in-scope activities for credit unions. This means that credit union staff providing services related to lending and term deposits will need to meet minimum knowledge and competence standards.

Credit union staff, who are undertaking in-scope activities on 1 October 2024, and who will be in situ when the transitional period ends, can avail of the transitional arrangements to comply with the requirements and obtain relevant qualifications by 1 October 2028. Existing new entrant requirements will apply for anyone taking up a new role in a credit union after 1 October 2024.

I am aware that the extension of the MCC to the credit union sector may create some operational challenges for some smaller credit unions but with the support of the Central Bank of Ireland and the representative bodies, I am confident that the sector can resolve any such issues arising.

These changes are positive and will help to build on the existing high levels of knowledge and expertise in the credit union sector. The changes are being introduced with a view to ensuring that credit union members are afforded the same level of protection as consumers availing of similar products and services from other regulated entities.