Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

It is a matter for the insolvency agency to license PIPs or individuals who are qualified to perform their functions as PIPs. There are very specific provisions in the legislation in regard to the fitness and probity requirements for PIPs. SI 209 of 2013 contains several provisions regarding fitness and probity of PIPs and states:

A personal insolvency practitioner shall be free from any undue influence, undue guidance or undue control of or by any other person which could prevent or hinder in any material respect the performance of his or her functions ... A personal insolvency practitioner [must] demonstrate to the satisfaction of the Insolvency [agency] that he or she ... is sufficiently competent, proficient and independent to undertake the role of a personal insolvency practitioner ... has the qualifications, skills, competence and capacity appropriate to the role ... has a clear ... understanding of the relevant legal, regulatory and financial environment applicable to the role ... has the organisational and financial competence, capacity and resources to undertake the role.

In the context of the financial issue raised by the Deputy, I wish to draw two matters to his attention and will try to do so with speed. The first is that a PIP "must be able to demonstrate to the satisfaction of the Insolvency [agency] that his or her ability to act as a [PIP] under the Act is not adversely affected to a material degree where the [PIP] is, or has been, in any jurisdiction ... issued a warning, censure, suspension, reprimand or other administrative or judicial sanction". A PIP is required to "manage his or her financial affairs relating to his or her practice as a personal insolvency practitioner in a sound and prudent manner".

The issue the Deputy raised about charges is one about which we had a great deal of discussion during the course of the legislation.

Personal insolvency practitioners will not be able to charge what might be described as inappropriate or outlandish fees. When a proposal is made by a PIP on behalf of a debtor to creditors with a view to resolving an individual's debt difficulties by the conclusion of a debt settlement arrangement or a personal insolvency arrangement, as the fees payable to the PIP will in essence come out of the pot that is there to meet the indebtedness to the creditors, the creditors will effectively be able to reject a fee proposed if they feel it is inappropriate. There is an inbuilt control in that respect and I am sure if any complaints or difficulties arise over the initial 12 months of the operation of the legislation, they will be brought to the attention of the insolvency agency.

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