I propose to take Questions Nos. 124 and 125 together.
As the deputy is aware the Central Bank of Ireland is responsible for the regulation of the financial services sector. The Central Bank has confirmed that it continues to have ongoing engagement with the UK Financial Conduct Authority in relation to Ulster Bank Global Restructuring Group (GRG). However it is not in a position to comment on the specifics of such engagement. While the Central Bank cannot comment on individual interactions with regulated entities, the Central Bank has and continues to engage with Ulster Bank Ireland DAC (UBI) in relation to this matter.
In November 2016, Royal Bank of Scotland (RBS) announced a complaints process
and refund of complex fees for SME customers in GRG and indicated publicly that “A customer is in-scope for the new complaints process if they were a small or medium sized enterprise under the control of GRG in the United Kingdom or Republic of Ireland between 1 January 2008 and 31 December 2013”.
In line with its risk-based supervisory approach, the Central Bank has been and continues to monitor all relevant issues as they arise from a system perspective. The Central Bank
will continue to monitor this matter and will be overseeing complaints received by UBI for any issues arising particularly in the context of SME Code compliance.
The protection of SME customers is a priority for the Central Bank. The Central Bank published SME Lending Regulations in 2015, which replaced the SME Code (originally introduced in 2009 and updated in 2012). The SME Lending Regulations are designed to facilitate access to credit, promote fairness and transparency in the manner in which regulated entities deal with SME borrowers and provide a framework within which they deal with financial difficulty cases. They provide key protections to SME customers including requirements relating to applications for credit, provision of information, dealing with SMEs in arrears and financial difficulties, appeals and handling complaints.
If a consumer is concerned or unhappy with how they have been dealt with by a firm regulated by the Central Bank, there are clear processes in place in the Regulations for handling complaints. The Central Bank encourages consumers who are dissatisfied with their experience of financial products or services to ensure that they communicate their complaint directly to their financial services provider. This ensures that their complaint receives the protections provided by the Regulations.