Credit Union Practices (LIA, Ireland)

Which body is primarily responsible for the overall governance, strategic direction, and operational management of a credit union in Ireland?

• AThe Board Oversight Committee.
• BThe Board of Directors.
• CThe Registrar of Credit Unions.
• DThe Credit Committee.

In an Irish credit union, what voting principle is applied during Annual General Meetings (AGMs) when deciding on resolutions?

• AOne vote per share held by the member.
• BOne member, one vote, regardless of shareholding size.
• CVotes are weighted by the member's outstanding loan balance.
• DOnly members of the Board of Directors are permitted to vote.

What is the primary role of the Board Oversight Committee (BOC) in an Irish credit union?

• ATo approve large commercial loans submitted by members.
• BTo hire and fire entry-level tellers and customer service representatives.
• CTo manage the credit union's daily investment portfolio.
• DTo assess and monitor whether the Board of Directors has operated in accordance with legi…

Which of the following defines the concept of the 'common bond' in Irish credit unions?

• AThe qualifying factor (such as locality, occupation, or association) that determines who…
• BA joint liability agreement signed by members when co-signing a loan.
• CThe security agreement used to charge property assets for mortgage lending.
• DThe financial connection between credit unions and the Central Bank of Ireland.

What is the minimum age requirement for an individual to be elected to the Board of Directors of an Irish credit union?

• A16 years of age.
• B21 years of age.
• C18 years of age.
• D25 years of age.

Who elects the members of the Board Oversight Committee (BOC) in an Irish credit union?

• AThe Board of Directors by a majority vote.
• BThe Registrar of Credit Unions.
• CThe credit union members at the Annual General Meeting (AGM).
• DThe Chief Executive Officer (CEO) of the credit union.

In the context of credit union philosophy, what is the meaning of the term 'surplus' as opposed to 'profit'?

• AFunds remaining after operating costs and reserves are covered, which are returned to mem…
• BExcess funds that must be paid as corporate tax to the Irish government.
• CSpeculative gains made from trading high-risk derivatives.
• DThe total value of unpaid loans written off during a financial year.

Which of the following is a core international cooperative principle adopted by Irish credit unions?

• AMaximization of shareholder return on equity.
• BLimited membership open only to high-net-worth individuals.
• CConcern for community.
• DMandatory credit facilities for all citizens regardless of creditworthiness.

Under the Credit Union and Co-operation with Overseas Regulators Act 2012, which of the following internal roles became a mandatory statutory officer requirement in Ireland?

• ARisk Management Officer.
• BPublic Relations Director.
• CChief Investment Trader.
• DExternal Auditor.

How often must the Board of Directors of an Irish credit union meet under statutory requirements?

• AAt least twice a year.
• BWeekly, without exception.
• COnce every quarter.
• DAt least 10 times in each financial year, with no more than 6 weeks between meetings.

Which of the following functions is strictly reserved for the Board of Directors and CANNOT be delegated to the CEO or management?

• AProcessing daily member withdrawal requests.
• BConducting routine compliance training for frontline staff.
• CApproval of the credit union's strategic plan and annual budget.
• DManaging the physical security of the branch office.

What is the maximum number of directors that can serve on the Board of Directors of an Irish credit union under typical rules?

• A11 directors.
• B5 directors.
• C15 directors.
• D20 directors.

Under credit union rules, which of the following individuals is ineligible to be elected to the Board of Directors?

• AA retired member living within the common bond.
• BA member who has an outstanding personal loan in good standing.
• CAn employee of the credit union.
• DA member who operates a local small business.

If a vacancy arises on the Board Oversight Committee (BOC) between Annual General Meetings, how is the vacancy filled?

• AThe Board of Directors appoints a replacement from their own members.
• BThe position must remain vacant until the next AGM regardless of committee size.
• CThe remaining members of the BOC can co-opt a qualified member to fill the vacancy until…
• DThe Registrar of Credit Unions appoints a replacement officer.

What is the statutory role of the Credit Union Manager (CEO) in relation to the Board of Directors?

• ATo overrule board decisions regarding the strategic direction of the credit union.
• BTo serve as the Chairman of the Board of Directors.
• CTo manage the daily operations of the credit union in accordance with the policies set by…
• DTo audit the financial statements of the credit union and present them to the AGM.

How is the Chair of the Board of Directors of an Irish credit union chosen?

• AThey are directly elected by the members at the AGM.
• BThey are elected by the directors from among their own members at the first board meeting…
• CThey are appointed by the Registrar of Credit Unions.
• DThey are selected by the CEO of the credit union.

What is the standard term of office for a member of the Board of Directors in an Irish credit union?

• AA term of 1 year, requiring reelection at every AGM.
• BA term of 3 years, with directors retiring by rotation.
• CA lifetime appointment, subject to good behavior.
• DA term of 5 years, with a maximum of one term allowed.

Which of the following committees is responsible for ensuring that members are kept informed of general meetings and credit union activities?

• AThe Credit Control Committee.
• BThe Audit Committee.
• CThe Risk Committee.
• DThe Membership Committee.

What is the role of the Nomination Committee in an Irish credit union?

• ATo decide which members receive dividends on their shares.
• BTo nominate the external auditor for the credit union.
• CTo select the commercial vendors for the credit union's IT systems.
• DTo identify and assess candidates who are fit and proper to serve on the board or committ…

Which of the following constitutes a quorum for a meeting of the Board of Directors under typical credit union rules?

• AThree directors, regardless of board size.
• BA majority of the directors currently holding office.
• CAll directors must be present for any meeting to proceed.
• DThe Chairman and the CEO present together.

What is the key difference between the Board Oversight Committee (BOC) and the Internal Audit function in an Irish credit union?

• AThe BOC performs financial audits, while Internal Audit focuses on marketing compliance.
• BThe BOC is elected by members to monitor board compliance, while Internal Audit is an ope…
• CThe BOC is appointed by the CEO, while Internal Audit is appointed by the Central Bank.
• DThere is no difference; they are two names for the same statutory body.

Under the Credit Union Act 1997, what is the legal position regarding the borrowing of funds by a director from their own credit union?

• AA director may borrow, but the loan must not be on terms more favorable than those availa…
• BDirectors are strictly prohibited from borrowing any funds from the credit union.
• CDirectors may borrow interest-free loans as part of their compensation package.
• DDirectors' loans can only be approved by a direct vote of members at an SGM.

What is the statutory requirement regarding the timeline for notifying members of an Annual General Meeting (AGM) in an Irish credit union?

• AAt least 7 days' notice via local newspaper announcement only.
• BAt least 21 days' written notice must be given to all members eligible to attend.
• CAt least 14 days' written notice.
• DExactly 30 days' notice, delivered by registered post.

Under the Credit Union Act 1997 (as amended), which of the following actions requires a special resolution of the members rather than an ordinary resolution?

• AThe approval of the annual financial statements.
• BThe election of new members to the Board of Directors.
• CThe declaration of the annual dividend rate.
• DAn amendment to the rules or rule book of the credit union.

What is the legal consequence if the Board Oversight Committee (BOC) determines that the Board of Directors is acting in a manner that seriously threatens the credit union's financial stability?

• AThe BOC can dissolve the credit union and distribute the assets immediately.
• BThe BOC can arrest the directors and hold them in custody.
• CThe BOC can take over the operational management of the credit union indefinitely.
• DThe BOC can, by unanimous decision, convene a Special General Meeting (SGM) at which the…

Which regulatory body is responsible for supervising credit unions and enforcing compliance with financial regulations in Ireland?

• AThe Financial Services and Pensions Ombudsman (FSPO).
• BThe Central Bank of Ireland.
• CThe Irish League of Credit Unions (ILCU).
• DThe Department of Finance.

What is the maximum savings (shares and deposits) limit that an individual member can hold in a credit union under standard Central Bank regulations, unless an individual dispensation applies?

• A€10,000.
• B€50,000.
• C€250,000.
• D€100,000.

In Ireland, the Deposit Guarantee Scheme (DGS) protects eligible deposits in a credit union up to what maximum value per person, per institution?

• A€20,000.
• B€100,000.
• C€50,000.
• D€150,000.

What is the main objective of the Central Bank of Ireland's Fitness and Probity regime as applied to credit unions?

• ATo ensure that credit unions achieve a high return on equity.
• BTo verify that all members have a high credit score before joining.
• CTo mandate physical fitness requirements for credit union staff.
• DTo ensure that key decision-makers are competent, capable, and act with honesty and integ…

Under Irish Anti-Money Laundering (AML) law, what does the acronym 'CDD' stand for?

• ACredit Debt Deduction.
• BCustomer Due Diligence.
• CConsumer Disclosure Document.
• DCentral Deposit Division.

Under the Central Bank of Ireland's Minimum Competency Code (MCC), what must an individual hold to provide retail financial advice to credit union members?

• AA recognized professional qualification (such as CUA or QFA) or be registered as a grandf…
• BA recommendation letter from a local politician.
• CA minimum of €10,000 in personal savings with the credit union.
• DA university degree in any field, regardless of financial training.

Under the General Data Protection Regulation (GDPR), what is a key right of a credit union member regarding their personal data?

• AThe right to have all outstanding loans deleted from the credit union database on request.
• BThe right to access their personal data and request correction of inaccuracies.
• CThe right to view the personal account details of any other member.
• DThe right to demand cash withdrawals without verifying identity.

To whom should a credit union officer report a transaction they suspect may be related to money laundering or terrorist financing?

• ADirectly to the local Garda station desk sergeant.
• BThe Chairman of the Board of Directors.
• CThe credit union's internal Money Laundering Reporting Officer (MLRO).
• DThe member who conducted the transaction.

What is the regulatory role of the Financial Services and Pensions Ombudsman (FSPO) in Ireland?

• ATo audit and publish the annual accounts of all credit unions.
• BTo set the interest rates for credit union personal loans.
• CTo act as an independent body that investigates and resolves disputes between consumers a…
• DTo provide emergency liquidity funding to struggling credit unions.

Under the Central Bank's Minimum Competency Code, what are the annual Continuous Professional Development (CPD) hour requirements for a qualified person?

• AA minimum of 5 hours of training per year.
• BA total of 50 hours of training, with no specific subject requirements.
• CA minimum of 15 hours of relevant CPD per calendar year, including at least 1 hour for et…
• DCPD is only required once every 5 years upon renewing the designation.

Under Irish Anti-Money Laundering legislation, what is the offence of 'tipping-off'?

• ATelling the compliance officer about a suspicious cash transaction.
• BDisclosing to a member or third party that a suspicious transaction report (STR) has been…
• CProviding financial advice to a member without a CUA qualification.
• DAccepting a cash deposit that exceeds €10,000.

Under the Fitness and Probity Standards, what are Pre-Approval Controlled Functions (PCFs) in an Irish credit union?

• AFrontline staff members who handle member cash transactions.
• BAll members who attend and vote at the Annual General Meeting (AGM).
• COutsourced service providers that clean and maintain the branch offices.
• DKey senior roles (such as Director, CEO, Compliance Officer, and Risk Manager) that requi…

What is the statutory role of the Money Laundering Reporting Officer (MLRO) in an Irish credit union?

• ATo manage the credit union's daily lending targets.
• BTo prosecute members in court for failing to repay their loans.
• CTo receive internal disclosures of suspicious transactions, evaluate them, and file Suspi…
• DTo approve all credit union marketing and promotional campaigns.

Under the Central Bank's Consumer Protection Code (CPC), what is the key requirement for the 'Knowing the Consumer' principle?

• AA credit union must verify that the consumer lives within 5 miles of the branch office.
• BStaff must conduct a criminal background check on every loan applicant.
• CCredit unions must ensure that all members hold a QFA qualification.
• DA financial provider must gather and record sufficient information about a consumer's fin…

Under the Consumer Protection Code (CPC), how often must a credit union provide a written update to a complainant if their complaint remains unresolved?

• AAt intervals of not greater than 20 business days.
• BEvery calendar week.
• CEvery 10 business days.
• DOnly once, after 40 business days have elapsed.

To which two external authorities must a credit union submit a Suspicious Transaction Report (STR) under Irish AML law?

• AThe Central Bank of Ireland and the Department of Finance.
• BThe Financial Intelligence Unit (FIU) of An Garda Síochána and the Revenue Commissioners.
• CThe Irish League of Credit Unions (ILCU) and the local Garda station.
• DThe Registrar of Credit Unions and the Financial Services Ombudsman.

What is the Central Credit Register (CCR) in Ireland?

• AA centralized database managed by the Central Bank of Ireland that collects and stores in…
• BA listing of members who have failed to attend three consecutive AGMs.
• CA register of credit union employees who hold the QFA designation.
• DA public database showing the names of all depositors and their savings balances.

Under what circumstances is an Irish credit union STATUTORILY mandated to consult the Central Credit Register (CCR) before approving a loan?

• AFor every single loan application, regardless of the amount.
• BWhen a member applies for a loan or credit facility of €2,000 or more.
• COnly when a member has previously defaulted on a loan with that specific credit union.
• DOnly for commercial loans exceeding €50,000.

Under Central Bank regulations, what must a credit union do before proposing a dividend to its members at the AGM?

• AIt must distribute 100% of its annual surplus as a dividend without retaining reserves.
• BIt must obtain prior written approval from the Central Bank if it does not meet regulator…
• CIt must increase loan interest rates to fund the dividend payout.
• DIt must obtain verbal permission from the Irish League of Credit Unions (ILCU).

What is the purpose of the 'liquidity ratio' requirement imposed on credit unions by the Central Bank of Ireland?

• ATo ensure the credit union holds sufficient liquid assets (cash and short-term investment…
• BTo measure the speed at which loan applications are processed by staff.
• CTo limit the amount of interest a credit union can charge on personal loans.
• DTo calculate the ratio of male to female directors on the board.

What is the primary operational role of the Compliance Officer in an Irish credit union?

• ATo approve and sign off on all member loan applications.
• BTo act as the primary defense lawyer representing the credit union in court.
• CTo identify compliance risks, monitor internal procedures, and ensure the credit union ad…
• DTo oversee the daily cash reconciliation of teller drawers.

Under the Consumer Protection Code (CPC), what is the key disclosure requirement when a credit union introduces a fee or charge for a service?

• AFees can be introduced immediately without notice, provided they are updated on the websi…
• BThe credit union must obtain written consent from every member before introducing a new f…
• CThe credit union must notify affected members in writing at least 30 days before the fee…
• DNew fees can only be introduced after a vote of members at the AGM.