Dáil Éireann Debate, Tuesday - 28 September 2021
276. Deputy Claire Kerrane asked the Minister for Finance if there are plans to require mortgage providers to display their approval from the Central Bank; if additional protection will be provided to consumers when undertaking a mortgage in order to ensure they are engaging with accredited mortgage providers including those based overseas; and if he will make a statement on the matter. [45988/21]
View answerWithin the regulatory framework of the Central Bank of Ireland, only authorised credit institutions or retail credit firms may provide mortgage credit to consumers in Ireland. Under EU law, credit institutions authorised in another EEA Member State can provide specified banking activities, including lending, in other Member States provided that the home country supervisor (which in Ireland is the Central Bank) is satisfied.
In relation to the display of such an authorisation, the Central Bank has advised that while there is no specific requirement for a regulated entity to display their authorisation on their premises, Provision 4.10 of the Central Bank’s Consumer Protection Code 2012 requires that a regulated entity must use a regulatory disclosure statement in either of the following formats, depending on the EEA Member State where it has been authorised, registered or licensed:
a) “[Full legal name of the regulated entity, trading as (insert all trading names used by the regulated entity)] is regulated by the Central Bank of
Ireland”; or
b) “[Full legal name of the regulated entity, trading as (insert all trading names used by that regulated entity], is authorised/licensed or registered by [insert name of the competent authority from which it received its authorisation or licence, or with which it is registered] in [insert name of the Member State where that competent authority resides] and is regulated by the Central Bank of Ireland for conduct of business rules.”
A regulated entity must not insert any additional text into the wording of the regulatory disclosure statements as set out above.
A regulatory disclosure statement as outlined above must be included on business stationary, websites and on electronic communications with consumers (excluding SMS) and regulated firms may only use the regulatory disclosure statement in communications with a consumer where such communications relate solely to a regulated activity.
Consequently, any firm operating in Ireland under EU passporting rules will also have to use a regulatory disclosure statement, indicating the EEA country where it has been authorised but highlighting that it is regulated in Ireland for conduct of business rules.
In relation to consumer protection, the Central Bank has advised that further information on how to check if a firm is authorised can be found on the Consumer Hub section of the Central Bank website which contains Registers of all regulated firms alongside an Explainer for consumers on how to check the regulatory status of a particular firm and the importance for consumers to only deal with authorised firms.
