The SSIA scheme, which was introduced in 2001 is administered by the financial institutions under the guidance of the Revenue Commissioners. In excess of 1 million SSIAs were opened by 30 April 2002, the final date for opening of SSIAs under the scheme. Comprehensive guidelines, setting out the manner in which the scheme must be administered, was drawn up by Revenue, in consultation with the financial institutions at the commencement of the scheme. This is supported by compliance visits undertaken by Revenue each year to the financial institutions to ensure the terms of the guidelines are being fully implemented. Apart from that the financial institutions are obliged to report to Revenue any case where it is suspected that the rules of the scheme are being breached. On commencement of the scheme, each account holder was obliged to sign a declaration confirming their eligibility to participate in the scheme and that they would abide by the terms of the scheme for its duration. These terms include that the account holder was over 18 years of age and resident in the State; that s/he would operate only one SSIA; subscriptions could only be made from the individual's own or spouse's resources; subscriptions must not be funded by borrowings or deferral of existing repayments; that at least the minimum subscriptions be made in the first 12 months and that the maximum subscriptions levels be complied with for the duration of the scheme; and funds in an SSIA must not be used as security for a loan. In addition, before an SSIA can be matured, the account holder has to sign a further declaration confirming compliance with the rules of the scheme, including those relating to residency, for its duration.
Apart from cases reported by the financial institutions to Revenue in accordance with the requirement to do so, Revenue has extensive control systems in place to monitor the scheme and identify any potential abuses. These abuses include individuals with more than one account. Where an apparent breach of the rules is identified, Revenue fully investigates each case and takes appropriate action. I am advised by Revenue that the number of actual abuses is very small and have been appropriately dealt with.