Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

I move amendment No. 2:

In page 3, between lines 10 and 11, to insert the following:“Amendment of section 9 of Principal Act

2.Section 9(1) of the Principal Act is amended by—

(a) the substitution of the following for paragraph (e):

“(e) promote public awareness and understanding of matters relating to personal insolvency, and provide information on the working of this Act and of the Bankruptcy Act 1988, and on related matters including those specified in paragraphs (jb), (jc) and (jd);”,

and

(b) the insertion of the following after paragraph (ja) (inserted by section 38 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013):

“(jb) compile, collect, analyse and disseminate information and statistics on the operation of this Act and of the Bankruptcy Act 1988;

(jc) monitor and analyse developments, as respects, the situation of insolvent debtors, and trends in, and patterns of, debtor and creditor behaviour;

(jd) develop strategies for communicating with the public aimed at promoting the use of insolvency arrangements and enhancing their effective application;”.”. 

Amendment No. 2 is to section 9 of the Personal Insolvency Act 2012 which sets out the functions of the Insolvency Service of Ireland. It expands on the important functions of the service regarding information, awareness-raising and communication in personal insolvency and bankruptcy matters.

Paragraph (a) gives the Insolvency Service of Ireland explicit powers to promote awareness and understanding of insolvency and bankruptcy legislation. In that regard, I should acknowledge the proactive approach to public information the service has been taking nationwide. Research undertaken by it last year showed that many people in serious debt were not aware of the services available to them through it. The amendment underlines the importance of public awareness as a crucial step in responding effectively to problem debt.

Paragraph (b) further strengthens the role of the Insolvency Service of Ireland in developing and maintaining expertise in relation to the operation of the Personal Insolvency and Bankruptcy Acts and monitoring and analysing developments in debtor and creditor behaviour. These functions will ensure the existence of a national expert authority on insolvency and bankruptcy and its availability, where required, in policy development and decision-making. Paragraph (b) focuses on development by the ISI of communication strategies to promote the use of insolvency arrangements and enhance their effectiveness. This function lies at the heart of my amendments to the Bill.

Amendments Nos. 22 to 25, inclusive, provide for a more detailed and effective power for the Insolvency Service of Ireland to exercise a proactive supervision over personal insolvency practitioners, PIPs. The Act already provides extensive powers for the ISI to intervene where there is a complaint, or where there is some reason to suspect that a PIP has not correctly fulfilled his or her duties under the Act. It is a reactive power, carried out by inspectors whose functions and powers are already provided in the Act. However, it does not provide for a proactive supervision power which would allow for routine inspection without need for a reasonable apprehension of misconduct. This sort of proactive supervision power reflects what is already the case for legal and accountancy professional bodies or debt advisors supervised by the Central Bank. It represents a "good practice" standard and the ISI has requested such an extension of its powers for that reason. It is very important, given the trust placed in PIPs to administer the funds of insolvent persons and fulfil statutory duties both to creditors and debtors, that they enjoy the fullest public confidence. I consider it appropriate that the ISI should have such a detailed power. The Act already provides a general supervisory power for the ISI in section 9 and amendments Nos. 22 to 25, inclusive, will now translate it into detailed application by providing for the appointment of authorised officers who will carry out the proactive supervision function and conferring on them the necessary powers.

Amendment No. 22 provides for a stronger definition of “improper conduct” in respect of authorised officers and extends ISI powers to supervise and investigate the conduct of PIPs in respect of a more comprehensive range of breaches of the Personal Insolvency Act.

Amendment No. 23 inserts sections 176A to 176D, inclusive, to the Act of 2012. Section 176A provides the ISI with a new supervisory function to ensure PIPs comply with their statutory obligations. This is an important provision. It is in line with current regulatory best practice and in the public interest. Currently, insolvency legislation only provides for investigations in response to complaints.

I want to ensure there is full public confidence in PIPs and the important services they deliver. For example, PIPs hold money for the person in an insolvency arrangement and pay out that money to creditors. A proactive supervisory function will also be a protection for PIPs. Section 176B deals with the appointment of authorised officers to carry out supervisory functions.

Section 176C addresses the powers of the authorised officer to pursue his or her responsibilities. The powers are standard and found elsewhere in the Statute Book and reflect the important nature of the functions of PIPs.

Section 176D requires an authorised officer, where improper conduct by a PIP is found to have occurred or is occurring, to notify the ISI of that conduct. Section 176D also requires the ISI after such notification to have an investigation carried out where there is sufficient reason to do so.

Amendment No. 24 amends section 181 of the Personal insolvency Act 2012 which deals with measures to assist an inspector in carrying out an investigation of a PIP. In general, the new authorised officer powers reflect those already available to inspectors under the Act. However, in a few cases a new power, reflecting current best practice standards for supervision, has been included for authorised officers. The amendment extends these extra powers also to inspectors as they are also relevant for their work.

Amendment No. 25 amends section 186 of the Act of 2012 which deals with restrictions in relation to the Data Protection Act 1988 and extends the same protection to authorised officers as already applies to inspectors under the Act.

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