Thursday, 20 June 2019

Questions (79)

Michael McGrath


79. Deputy Michael McGrath asked the Minister for Finance the procedures followed when credit servicing firms are seeking to be regulated by the Central Bank; if past performance or instances of past performance have a weighting on the assessment of the Central Bank of such firms; if the Central Bank considers previous issues such as the miscalculation of mortgage arrears when it is granting a licence; and if he will make a statement on the matter. [26031/19]

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Written answers (Question to Finance)

The Central Bank is independent in the performance of its authorisation functions. During the assessment phase of the authorisation process, I understand that the Central Bank will assess each application for authorisation to determine whether the applicant has demonstrated that it meets the requirements set out in Part V, Chapter 3 of the Central Bank Act 1997, which include a requirement that the organisation of the applicant’s business structure is such that it is capable of being supervised adequately by the Central Bank and meeting the Authorisation Requirements and Standards for Credit Servicing Firms. These were published by the Central Bank in December 2015 and subsequently amended to reflect the changes required following the enactment of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018.

I understand that the Central Bank will also assess whether key persons in senior positions within the applicant have demonstrated that they meet the Fitness and Probity Standards. The Central Bank has confirmed to me that it considers all relevant information available to it during the assessment phase of the authorisation process.

Once the assessment phase of the authorisation process is completed, an applicant will either be granted or refused authorisation and the public register of Credit Servicing Firms will be updated to reflect those firms who have been granted an authorisation. Fuller details of the Authorisation Process are available on the Central Bank's website.