Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 2:

In page 4, between lines 12 and 13, to insert the following:“Transitional provision for existing credit servicing firms: supplementary

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

“34FA. (1) Notwithstanding section 29, a person (other than a regulated financial service provider taken to be authorised to carry on the business of a credit servicing firm by virtue of section 28(3) or a person taken to be carrying on the business of a credit servicing firm by virtue of section 28(4)) carrying on the business of a credit servicing firm immediately before the coming into operation of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 is taken to be authorised to carry on the business of a credit servicing firm after such coming into operation until the Bank has granted or refused authorisation to the person, provided that the person applies to the Bank under section 30 for authorisation no later than 3 months after that coming into operation.

(2) If a person is taken to be authorised to carry on the business of a credit servicing firm under subsection (1), the Bank may do either or both of the following:

(a) impose on that person such conditions or requirements or both as the Bank considers appropriate relating to the proper and orderly regulation and supervision of credit servicing firms;

(b) direct that person not to carry on the business of a credit servicing firm for such period (not exceeding 3 months) as is specified in the direction.

(3) A condition or requirement imposed, or a direction given, under this section is an appealable decision for the purposes of Part VIIA of the Act of 1942.".".

This is a new section 34FA that allows an existing owner to continue to hold legal title, provided there is an application to the Central Bank for authorisation within three months of the coming into operation of this legislation. It also makes it clear that the Central Bank may impose conditions on such an owner. This is similar to the transitional provisions of the 2015 Act. The intention here is to give owners a route to continuing the ownership while going through the authorisation process. Acceptance of this amendment involves deletion of section 3 of the Bill. It is a transitional provision providing a route for those who currently own loans and are not regulated to become regulated and continue to own those loans.