Mr. Antoine Mac Donncha:

That is the approach we have tried to take. We are regulating the activity rather than the legal ownership because the former is where protection is required. One of the most convincing arguments that was raised in the consultation made us reconsider our approach. It was pointed out to us that, if we just focused on the ownership, there was a possibility of having an owner who did nothing and was entirely passive. No regulation would apply, as the owner would be able to slip under the radar by not doing anything that was regulated. Therefore, the regulatory requirements would not be breached. The activity could be outsourced to a servicer that would have a freer hand because it would not be regulated. By moving from the ownership to the activity, we intend to avoid that lacuna. Every loan will be captured now because either the owner or the servicer will be captured. Even if a loan is not outsourced and there is a passive owner, that situation will be captured in the legislation.