Dáil Éireann Debate, Tuesday - 7 May 2013
140. Deputy Charlie McConalogue asked the Minister for Finance if he will ensure that his plans to regulate the debt management advice sector prohibits misleading advertising, ensures reasonable charges and appropriate protection for client funds; and if he will make a statement on the matter. [21263/13]
Amharc ar fhreagraThe amendment to the Central Bank (Supervision and Enforcement) Bill 2011, which I proposed at Committee Stage, and was agreed on the 24th April 2013, will provide for a regulatory regime for debt management and debt advice companies. Under the proposed legislation the Central Bank will require that debt management firms will be obliged to comply with an appropriate code of conduct. The existing protections of the Consumer Protection Code will apply to debt management firms and it is via this code that protections for consumers with regard to advertising and charges etc. will be provided for.
Debt management firms will be authorised to provide debt advice and debt negotiation services as provided for in the definition of debt management services in the Central Bank (Supervision and Enforcement) Bill 2011. They will not be authorised to hold client funds on the basis of solely holding a debt management firm authorisation. Where debt management firms propose to receive client funds and make payments on behalf of clients to their creditors they may require a payment institution authorisation under the European Communities (Payment Services) Regulations 2009 or a money transmission business authorisation under Part V of the Central Bank Act 1997 (as amended) depending on their business model. It is under these regimes that the appropriate protection for client funds is provided for.
