The manager of a Credit Union that owed €2m has been banned from senior financial roles
A liquidator was appointed to Rush Credit Union last November.
THE CENTRAL BANK has issued the “most serious possible outcome to a fitness and probity investigation” to the former Rush Credit Union manager Anne Butterly.
Last year, Butterly was suspended from her position at the credit union while an investigation into unauthorised transactions at the branch was carried out by the Central Bank.
Today’s notice issued to the former credit union manager has prohibited her from being appointed to a senior role in any regulated financial service provider for an indefinite period.
The High Court appointed liquidators to Rush Credit Union on 21 November 2016, with court documents recording that the institution owed about €2 million more than it held in assets.
A partially redacted report by the Central Bank Resolution Division into the credit union was published as part of the liquidation process.
It described the credit union as “a failing institution with poor governance and systems and control issues that it has failed to resolve over many years”.
The report also found that there was “a substantial purported misappropriation and issues regarding the management of the car draw”.
The report was able to uncover payment transactions in relation to the car draw but not the details of winners because “no information is recorded or published on Rush’s website”.
In total, purchase details were found for 15 cars totalling €220,500.
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In a statement today, the Central Bank said its investigation into Butterly has now concluded.
Brenda O’Neill, Central Bank head of enforcement investigations said: ”This outcome shows that the Central Bank’s regulatory reach extends to individuals, and not just to firms.
“We take individual accountability very seriously and this case demonstrates our resolve to act where an individual’s conduct falls below expected standards.”
O’Neill said that the fitness and probity regime was introduced to strengthen the Central Bank’s enforcement powers against individuals in all parts of the financial services industry, including those working in the credit union sector.
She added that through its supervisory interactions with credit unions, the Registry of Credit Unions has found that the introduction of the fitness and probity standards has contributed to an improvement in standards of governance
However, while many credit unions have embraced these requirements, the Registry “remains concerned to see that changes in culture have not fully embedded in all credit unions”.
“This is unacceptable given that credit unions are responsible for safeguarding their member’s funds,” O’Neill said.
“Where deficiencies in this area are identified, the sector should be in no doubt that the Central Bank will use its full powers, including its enforcement powers under the fitness and probity regime.”
Written by Hayley Halpin and posted on TheJournal.ie
