Dáil Éireann Debate, Thursday - 1 February 2024
112. Deputy Robert Troy asked the Minister for Finance if he will review the powers of the Financial Services Ombudsman with regard to protecting customers against unfair practices by financial institutions. [4606/24]
View answerThe Financial Services and Pensions Ombudsman was established in January 2018 by the Financial Services and Pensions Ombudsman Act 2017. The role of the FSPO is to resolve complaints from consumers, including small businesses and other organisations, against financial service providers and pension providers.
In doing so, the FSPO provides an independent, fair, impartial, confidential and free service to resolve complaints through either informal mediation, leading to a potential settlement agreed between the parties, or formal investigation and adjudication, leading to a legally binding decision.
Complaints are dealt with informally at first, by listening to both parties and engaging with them to facilitate a resolution that is acceptable to both parties. Much of this informal engagement takes place by telephone. Where these early interventions do not resolve the dispute, the FSPO formally investigates the complaint and issues a decision that is legally binding on both parties, subject only to a statutory appeal to the High Court.
Pursuant to the FSPO Act 2017, the Ombudsman has wide-ranging powers to deal with complaints against financial service providers. The Ombudsman can direct a provider to rectify the conduct that is the subject of the complaint. There is no limit to the value of the rectification that can be directed. The Ombudsman can also direct a provider to pay compensation to a complainant of up to €500,000.
In addition, the Ombudsman can publish anonymised decisions and can also publish the names of any financial service provider that has had at least three complaints against it upheld, substantially upheld, or partially upheld in a year.
The Ombudsman also publishes the names of any financial service provider that has had at least three complaints against it upheld, substantially upheld, or partially upheld in a calendar year.
When dealing with complaints against pension providers, the Ombudsman may direct redress. With respect to complaints against pension providers, such redress cannot exceed any actual loss of benefit under the pension scheme concerned. In relation to pension complaints, the Ombudsman can publish anonymised case studies.
In accordance with Section 18 of the FSPO Act, the FSPO cooperates, and exchanges information with, the Competition and Consumer Protection Commission, the Pensions Authority and the Central Bank of Ireland, in a way that contributes to promoting the best interests of consumers and actual or potential beneficiaries of financial services and pension services, and to the efficient and effective handling of complaints.
In addition, next week I will bring the Financial Services and Pensions Ombudsman (Amendment) Bill before the Dáil for consideration at Second Stage. If enacted, this Bill will safeguard the consumer protections and access to the FSPO for customers of financial service providers who have left the Irish market. The Bill aims to introduce legislative amendments to ensure the FSPO continues to discharge its statutory functions in line with the Constitution.
The FSPO has details available on its website with respect to the types of complaints that it can investigate and the statutory jurisdiction of the FSPO, including:
• Informational Videos and Leaflets on its services in the “Our Services” section.
• Details with respect to some jurisdictional issues in the “Legal References” section.
• Annual Published Overviews of Complaints, which include case studies.
