Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I move amendment No. 13:

In page 5, between lines 34 and 35, to insert the following:“Provision for newly regulated credit servicing firms

4.The Central Bank Act 1997 is amended by inserting the following section after section 34D:

“Provision for newly regulated credit servicing firms

34E. Notwithstanding section 29, a person seeking to provide credit servicing facilities, shall, prior to the commencement of such a facility, secure authorisation from the Bank.”.”.

We want to amend the Central Bank Act and are talking about the provision for newly-regulated credit servicing firms. We are asking that a person seeking to provide credit servicing facilities shall, prior to commencement of such a facility, secure authorisation from the Central Bank. Essentially, we do not want businesses that are up and running and carrying out their business as credit servicing organisations to apply retrospectively for authorisation from the Central Bank. There could be a lacuna while they are out there doing their business, getting their dirty work done first while the paperwork is going through subsequently.

We have often seen that people can get so busy and these things can take a long time. It is essential firms have authorisation prior to getting directly into this business. That would be necessary because the Central Bank authorisation process involves checking that the management is up to speed, that the appropriate people are doing the work, and that the correct controls and regulations are going to be in place. That should not all happen after the fact. When people have a licence, or whatever form of authorisation, they can conduct their business, but they should not be let out without a licence.