Credit unions - post restructuring reviews
After the 2008 financial crash, the government gave a commitment during the February 2011 election to establish a Commission to look into the future of credit unions. The Final Report of the Commission on Credit Unions established the general framework within which the future sustainability of the credit union sector should be viewed. This was completed in 2012. The Commission Report formed the basis for legislative reform, to be enacted by December 2012, as part of the Troika programme. A core recommendation of the Commission was that the credit union sector should be restructured. This should be achieved on a voluntary, incentivised and time-bound basis. In this manner, between 2011 and 2021 the overall number of credit unions reduced from 406 to 213 owing primarily to restructuring. In this regard, a transfer is a multi-stepped and complex process geared to ensure that the process is strategically aligned, risk sensitive and operationally effective. A well-designed transfer process ought to ensure the effective and efficient integration of the merged entities in a way that maximises opportunities and minimises risks. It should contain sufficient flexibility to enable further synergies to be identified, or new risks to be managed, during the integration period.
A post restructuring review is set in this context. The review is focused on making an independent and objective assessment of strategic, risk and operationally oriented elements of the transfer. Mindful that transferee credit unions often go on to engage in further restructuring transactions, the review is also relevant in determining the suitability of a transferee to act as a repeat transferee.
At Moore we have completed a significant number of post restructuring reviews over the past number of years. We can engage at speed and work to your deadlines. We pride ourselves on our ability to meet deadlines and issue a detailed and comprehensive report that focuses on simplifying complexity.
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