Dáil Éireann Debate, Wednesday - 10 April 2024
15. 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 and Services Pensions Ombudsman with respect to vulture funds as a result of gaps in their regulation. [15234/24]
View answerThe Financial Services and Pensions Ombudsman (FSPO) plays a vital role for consumers of financial services in Ireland, as part of a robust financial consumer protection framework. It is an independent, impartial, fair and free service that helps resolve complaints against financial service providers. The statutory functions of the FSPO are set out in the Financial Services and Pensions Ombudsman Act 2017.
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, which is independent, has determined that it does not have jurisdiction to investigate the conduct of financial service providers before they became regulated entities.
I am currently seeking 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 a robust consumer protection framework.
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.
My officials continue to engage as a matter of priority with the FSPO on the issues raised, and to obtain the necessary legal advice and explore all relevant legal avenues.
