Talks end legal action by credit unions

A legal action over regulatory directions requiring five credit unions to secure additional solvency support has been withdrawn at the High Court following talks between the sides. The directions remain in place.

The Irish League of Credit Unions said the proceedings were being withdrawn on the commitment from the Central Bank to do new asset reviews in relation to the five credit unions and on the basis of a “new understanding” with the Central Bank which will “explicitly involve” the ILCU in the regulatory affairs of its affiliated credit unions.

Maynooth Credit Union Ltd and the ILCU brought the case over the manner in which regulatory directions were issued last year to Maynooth and four other credit unions following reviews by various accountancy firms, carried out on behalf of the regulator, of their positions.