As I previously stated in Parliamentary Question No. 82 on 1 May 2018 the Financial Services and Pensions Ombudsman is independent in the performance of his statutory functions. I have no role in the day to day workings of the office.
The Financial Services and Pensions Ombudsman (FSPO) was established on 01 January 2018 under the Financial Services and Pensions Ombudsman Act 2017. Section 18 of the Act sets out how the Ombudsman shall co-operate with the regulatory authorities with a view to ensuring that this Act operates in a way that contributes to promoting the best interests of consumers and actual or potential beneficiaries of financial or pension services and to the efficient and effective handling of complaints.
The Act provides that the Ombudsman may make recommendations to the Central Bank in relation to measures that the Bank might take in order to effectively deal with persistent patterns of complaints. A similar provision existed in the legislation which underpinned the FSPO’s precursor body, the Financial Services Ombudsman (FSO), and the FSO and the Central Bank agreed a Memorandum of Understanding (MoU) which sets out the terms under which both parties give effect to these provisions. The MoU has not yet been updated to reflect the establishment of the FSPO on 1 January 2018, however, the original MoU continues to operate and is available on the FSPO website.
The Ombudsman has informed me that while the MoU provides for regular and routine information sharing, it also provides for specific information sharing whereby the FSPO will provide the Central Bank with detailed and specific information relating to a complaint (or complaints) for its general consideration in particular instances.
The following table outlines the details as requested by the Deputy of all matters referred by the Financial Services Ombudsman to the Central Bank of Ireland for each of the years 2014, 2015, 2016 and 2017:
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Year:
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2017 (5 Cases)
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Sector:
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Insurance
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint. The Ombudsman dealt with the complaint but referred a broader issue raised by the Complainant which alleged that insurance providers are refusing to quote young drivers with minor accidents.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding a general consent on a loan application to allow a lender to visit or telephone any member of a customer's family, if the lender cannot contact customer.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding the operation of bank accounts due to sanctions in other jurisdictions.
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Sector:
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Insurance
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding charges imposed by the Provider on a life policy in circumstances where there was a lack of evidence of a contractual basis upon which the Provider has calculated and applied charges to the Complainant’s policy.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman referred a matter to the Central Bank for its consideration arising out of concerns regarding information given by financial service providers to consumers about variable rates on personal credit agreements, in particular the failure of providers to sufficiently alert customers of the possibility that the period of the credit agreement may increase, the number of instalments may increase or the total amount repayable may increase.
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Year:
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2016 (4 Cases)
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding the failure by a Financial Service Provider to comply with the European Communities (Payment Services) Regulations 2009 in particular the failure to adhere to the notification period to introduce of fees on accounts.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding general procedures of a financial services provider whereby access to online facilities is denied to certain customers.
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Sector:
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Insurance
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding the offering of services in promotional material and policy documentation which the financial services provider cannot provide.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding general procedures in relation to failure to provide the full loan amount, in circumstances where the new loan funds were withheld by the FSP in order to repay an older loan.
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Year:
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2015 (7 Cases)
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Sector:
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Investment
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Reason for Referral:
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The Ombudsman referred a matter to the Central Bank for its consideration arising out of concerns regarding the actions of a financial service provider, and its failure to engage with specified consumers.
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Sector:
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Unregulated
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Reason for Referral:
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The Ombudsman referred a matter to the Central Bank for its consideration arising out of concerns regarding the carrying out of regulated activities related to debt management without the authorisation necessary from the Central Bank to do so.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised a concern regarding the roll-over of loans and the adherence to Section 99 of the Consumer Credit Act, 1995 and where the loans where lawfully refinanced.
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Sector:
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Investment
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised concerns regarding alleged double charging of fees in an investment policy. The financial service provider reported it to the Central Bank in accordance with the Provider’s regulatory responsibilities.
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Sector:
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Insurance
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised concerns regarding general procedures and clarity in relation to No Claim Discount on a home insurance policy.
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Sector:
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Unregulated
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised concerns regarding the carrying out of regulated activities related to debt management without the authorisation necessary from the Central Bank to do so, and where an enforcement order had previously been imposed in relation to same.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised concerns regarding the financial service provider’s failure to comply with European Communities (Payment Service) Regulation 2009 in particular the placing of a “hold” on funds in advance of effecting a direct debit.
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Year:
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2014 (4 Cases)
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Sector:
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Insurance
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of a letter from a financial service provider to a consumer regarding the sale of card protection policies. The Ombudsman noted that no such complaints had been received by the office in relation to this matter at that time.
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Sector:
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Banking
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised concerns regarding general procedures in loan applications, in particular the lack of verification practices to the identity of the applicant.
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Sector:
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Investment
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Reason for Referral:
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The Ombudsman provided the Central Bank with a copy of its finding in relation to a particular complaint, and raised concerns regarding the failure of the financial service provider to issue annual statements on an investment. The Provider had informed the Financial Services Ombudsman that this issue was a wider issue where a series of known defects resulted in statements not being issued on an annual basis.
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Sector:
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Insurance and Banking
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Reason for Referral:
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A meeting was held to discuss: the sale of Card Protection Policies; portability of mortgages; and a recent High Court appeal regarding the application of standard variable rates.
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