Brian Cowen (Laois-Offaly, Fianna Fail)

The regulatory requirements of retail credit and home reversion firms are different from those for bureau de change or money transmission businesses, particularly in relation to consumer protection and competency. As a result, the Financial Regulator may need to impose conditions or requirements on authorised firms which are not explicitly provided for in the 1997 Act. Accordingly, the amendment adds four new sections to that Act to deal with these concerns. All of these sections are based on provisions in other legislation, such as the Investment Intermediaries Act 1995.

Section 31A sets out in some detail the criteria which a firm will have to satisfy in order to obtain or retain authorisation. Section 32A enables the Financial Regulator to grant different classes of authorisations by reference to the business actually carried out, to conduct a thorough investigation of applicants and to have regard to any relevant supervisory requirement imposed on the firm or applicant in another EEA country.

Section 33A empowers the Financial Regulator to impose requirements on authorised firms in the interest of consumer protection and orderly regulation. It includes powers to oblige firms to provide specific information in relation to consumer credit and home reversion agreements and to extend the consumer protection code to retail credit and home reversion firms.

Section 34C covers commencement and transition. Firms currently engaged in retail credit and home reversion business will be taken to be authorised, provided they apply to the Financial Regulator within three months. The regulator will be empowered to impose conditions on them, or direct a temporary suspension of business if necessary. Many of these firms have actively sought regulation and claim to abide by the consumer protection code.

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