Brian Cowen (Laois-Offaly, Fianna Fail)

As we know from our discussion on the Bill, it is a complex area. We are talking about the attempt to incorporate a directive into our legislation, to deal with many complexities and financial products and to make sure our definitions are correct. These were subject to publication and, since then, various views have been outlined by practitioners in this area with the aim of ensuring we did not extend the definitions beyond what it was we were trying to achieve, namely, that all institutions which interface with consumers would be covered and would have the benefit of the protection code. In that process, it emerged that an amendment to this effect would nuance or redefine the definition more exactly to avoid any unintended effect that may exist in regard to wholesale institutions which conduct their own business but do not interface with the public.

My officials consulted the Financial Regulator on an ongoing basis. The consumer director in the Financial Regulator's office confirmed that the provision of sub-prime mortgages to consumers was a priority in the area of consumer protection. The provisions proposed for the Bill go beyond consumers and include individuals acting in the course of their business, trade and profession. The consumer protection needs of this group were highlighted by Deputies in the passage of the Bill through the Dáil. The Bill meets the consumer protection objective that motivated the introduction of these provisions. Deputies have highlighted to me for some time their concerns regarding the lack of regulation of sub-prime lenders and this regulatory gap is now being closed.

The amendment ensures that the effect of the measure does not extend beyond what is required to secure this objective. In particular, it safeguards the commercial sector against any legal uncertainty as to whether authorisation as a retail credit firm is required. This could have had a serious impact on the international financial services sector in Ireland to the detriment of its current business-to-business activities.

It was on listening to those who are on the front line in the aftermath of publication, and listening to what was stated in the House, that we decided this was important to achieve. Therefore, we went to the Seanad with this amendment. We would be obliged if the House agreed to it.

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