Dáil Éireann Debate, Tuesday - 21 May 2024
93. Deputy Pearse Doherty asked the Minister for Finance to provide an update on consideration of changes to legislation to address the inability of consumers to make complaints to the Financial Services and Pensions Ombudsman with respect to vulture funds as a result of gaps in its regulation. [22787/24]
Amharc ar fhreagraThe Financial Services and Pensions Ombudsman (FSPO) is an independent, impartial, fair and free service that helps resolve complaints against financial service and pension providers from consumers and small businesses. It plays a vital role in the robust financial consumer protection framework in place in Ireland to support consumers of financial services.
The Deputy has raised the issue of the jurisdiction of the FSPO to look at complaints made against financial service providers while they were unregulated.
There a number of pieces of legislation in place that ensure consumers are protected when their loans are sold to non-banks.
Under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 legislation, loan owners have to appoint credit servicing firms who are regulated by the Central Bank.
In 2018, the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 was enacted, so that the Central Bank now also regulates the person who either holds legal title to a loan, or has material rights to decide how a portfolio of loans is dealt with.
The FSPO is an independent body and has determined that it does not have jurisdiction to investigate the conduct of financial service providers before they became regulated entities.
I have sought legal advice to ensure clarity on the scope of the FSPO's jurisdiction in relation to the issues raised, with the aim of ensuring the broadest possible access to the FSPO as an important part of the consumer protection framework.
My officials continue to intensely engage with relevant stakeholders in relation to the legal advice and all potential legal avenues, with a view to progressing this issue as a matter of priority.
As the Deputy is aware, I am presently bringing the Financial Services and Pensions Ombudsman (Amendment) Bill 2023 legislation through the Oireachtas to ensure the FSPO is on a constitutionally sound footing following the Supreme Court Zalewski ruling.
I have always advocated for the broadest regulatory and consumer protection regime possible, including access to the FSPO, and I have made clear that I am willing to introduce further legislative amendments should that be necessary and possible.
