Dáil Éireann Debate, Tuesday - 27 November 2018
179. Deputy Michael McGrath asked the Minister for Finance the funding provided to the Financial Services and Pensions Ombudsman in each of the years 2015 to 2017 and to date in 2018; the planned funding in 2019; and if he will make a statement on the matter. [49474/18]
View answerAt the outset, I must point out that the Financial Services and Pension Ombudsman is independent in the performance of his statutory functions.
As the Deputy will be aware the Financial Services and Pensions Ombudsman Act 2017 (FSPO Act 2017) which commenced on 1 January 2018 established the Office of the Financial Services and Pensions Ombudsman (FSPO). Prior to 2018 the Department of Employment Affairs and Social Protection were responsible for the funding of the Office of the Pensions Ombudsman.
The FSPO is funded through two distinct sources; the pensions complaints are funded by the Exchequer, through the Department of Finance and the financial services complaints are funded by a levy on the financial services industry.
The Ombudsman has informed me that the 2018 budget breakdown was as follows:-
|
Financial Services and Pensions Ombudsman |
2018 |
|
Exchequer Funding |
€ 950,000 |
|
Financial Services Industry Levy |
€ 4,336,961 |
The Financial Services Ombudsman, which preceded the establishment of the FSPO, was funded solely through a levy on the financial services industry, the table below sets out the details of this levy for 2015 to 2017:-
|
Financial Services Ombudsman |
2015 |
2016 |
2017 |
|
Financial Services Industry Levy |
€3,770,930 |
€4,231,925 |
€4,279,834 |
The FSPO Act 2017 sections 40 and 43 set out part of the role of the FSPO Council, which includes responsibility for setting the levy to be paid by financial service providers and oversight responsibilities in relation to the work of the Office of the Financial Services and Pensions Ombudsman including responsibilities in relation to:
- Approval of the Office's annual estimates;
- Approval of the Office's strategic plan; and
- Keeping under review the efficiency and effectiveness of the Ombudsman
I understand that the Annual Estimates of Income and Expenditure 2019 will be considered by the Financial Services and Pensions Ombudsman Council at its meeting in December, at which point the funding requirement for 2019 will be agreed. The Council with my consent will prescribe by regulation the "Financial Services Industry Levy" to be paid in relation to financial service providers.
The proposed Exchequer funding in relation to pension complaints for 2019 is €950,000.
