Dáil Éireann Debate, Wednesday - 19 December 2018
151. Deputy Michael McGrath asked the Minister for Finance the level of engagement between his Department and his Danish counterpart regarding the failure of a company (details supplied); and if he will make a statement on the matter. [53947/18]
View answer152. Deputy Michael McGrath asked the Minister for Finance the level of engagement between him and his Danish counterpart regarding the failure of a company (details supplied); and if he will make a statement on the matter. [53948/18]
View answer153. Deputy Michael McGrath asked the Minister for Finance the level of engagement between the Central Bank and Danish financial regulators regarding the failure of a company (details supplied); and if he will make a statement on the matter. [53949/18]
View answerI propose to take Questions Nos. 151 to 153, inclusive, together.
In general terms I do not consider it appropriate for either me or my Department to engage with our counterparts in other Member States on regulatory/supervisory matters as in my role as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation, and have no role in the day to day supervision of insurance companies. However in the case of Qudos because of its rather unique circumstances, my officials have been in touch with their counterparts in the Danish Ministry of Finance.
The Danish Finance Ministry officials advised that as Qudos was in solvent liquidation (as at 10 December), all claims would be met. However, he also indicated that if ultimately Qudos is placed into bankruptcy, and this happens after 1 January 2019, that the Danish Insurance Guarantee Scheme will not be liable to meet these claims due to a legislative change in May 2018. They noted that the decision as to if and when Qudos is placed into bankruptcy is not one for the Finance Ministry and that they have no role in this matter. The Danish officials did indicate that there are no plans to amend the legislation in relation to the Danish Insurance Guarantee Scheme.
It should also be noted that my officials have also been in contact with the UK Treasury and the EU Commission, to set out the impact and importance of this issue for Ireland. UK customers have also been impacted by the failure of Qudos. My colleague Minister of State D’Arcy has met with Insurance Ireland who outlined their serious concerns about the additional cost that Qudos could place on the Irish insurance sector if it is liquidated on or after 1 January 2019.
My officials also continue to liaise with the Central Bank who advise that they are in very frequent contact with its Danish counterpart (DFSA), the supervisory authorities of other affected member states though an EIOPA established Collaboration Platform for Qudos.
I understand that the Danish liquidators are currently continuing their review of the company with a view to determining its underlying financial position. Once this exercise is concluded they will be in a better position to determine whether the company can pay existing claims. It is expected that more information regarding this matter should be available this week.
