Vol. 500 No. 4
34 Mr. Ferris asked the Tánaiste and Minister for Enterprise, Trade and Employment the investigation, if any, held into the sudden closure of a Dublin based mortgage and investments brokerage firm (details supplied); if she has satisfied herself with the level of monitoring and supervision of these firms; and if she will make a statement on the matter. [4149/99]
I am replying to this question in so far as it relates to the regulation of mortgage intermediaries. I have no statutory responsibility for the regulation of investment intermediaries.
The Consumer Credit Act, 1995, which came into effect on 13 May 1996, obliges persons engaging in the business of being a mortgage intermediary to hold an authorization for that purpose from the Director of Consumer Affairs, and also to hold a letter of appointment in writing from each undertaking from which they act as intermediary.
The firm in question did not hold an authorization from the director to engage in the business of being a mortgage intermediary. I understand that it did act as an intermediary for one mortgage provider until June 1996, i.e. shortly after the Consumer Credit Act took effect.
The Office of the Director of Consumer Affairs has an agreement with the Irish Mortgage and Savings Association and the Irish Bankers Federation that their members who provide mortgages only deal with intermediaries who hold authorizations from the Director of Consumer Affairs. The office has checked with the individual members of the aforementioned associations, who advise that they have had no dealings with the firm referred to by the Deputy.
