Pádraig MacLochlainn
Question:195. Deputy Pádraig Mac Lochlainn asked the Minister for Finance the reason agents of moneylending companies are not vetted by the authorities. [42882/14]
View answerTuesday, 11 November 2014
Questions (195, 197)
Pádraig MacLochlainn
Question:197. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if the Central Bank of Ireland offers audit training programmes for agents of moneylending companies. [42884/14]
View answerWritten answers
I propose to take Questions Nos. 195 and 197 together.
The Central Bank has advised me that section 97 (1) of the Consumer Credit Act, 1995 (CCA) specifically envisages that a moneylender can appoint agents to act on its behalf. The agent is acting under the umbrella of the moneylender's licence, and as such is subject to the same compliance obligations as the licence holder, i.e. the Consumer Protection Code for Licensed Moneylenders (ML Code), the European Communities (Consumer Credit Agreements) Regulations 2010 and the CCA. Therefore, where the Central Bank becomes aware of potential non-compliance with regulatory requirements by an agent of a licensed moneylender, this would be treated as non-compliance by the licensed moneylender.
The ML Code makes it clear that agents of moneylenders are within the scope of the Code. The Scope section provides as follows:
"Throughout this text, reference to a 'moneylender' refers to a moneylender licensed under the Act, its officers, employees and persons who engage in the business of moneylending on behalf of the moneylender.'
Furthermore, under the Central Bank's Fitness & Probity Regime all licensed moneylenders are responsible for ensuring that individuals performing Controlled Functions (CFs) meet the Fitness & Probity Standards, both prior to appointment and on an on-going basis. Agents of licensed moneylenders perform CFs and, accordingly, the licensed moneylender must ensure that it carries out due diligence to assess its appointed agents' fitness and probity. Moneylenders are responsible for ensuring that all individuals performing a CF meet the required Fitness & Probity Standards.
The Central Bank provides compliance assistance to licensed moneylenders through its industry newsletter and other feedback and guidance to regulated firms which are available on the Central Bank's website at www.centralbank.ie.