Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

To be brutally honest with the Deputies, when I was briefed on this Bill before coming in, I saw the merits of where they were coming from. I could see the reason for this and the examples of where it could well be needed. I could think of examples of dealing with marital breakdown in my constituency where one party has gone, never to be engaged with and the other person is unable to make contact with them. I see the rationale behind this, and it is in that context that the Central Bank's consumer protection code plays an important role in the context of wider financial consumer protection frameworks to support consumers. The code was subject to a major review by the Central Bank recently in order to deliver an updated, modernised and fit-for-purpose code for consumers of financial services. As part of that consultation process and the proposed revised code measures, the Central Bank has set out a number of important policy proposals relating to consumers in vulnerable circumstances and experiencing financial abuse, which would provide important enhancements for consumers in such circumstances. That is what Members were alluding to a moment ago. This includes a proposed new and overarching provision on securing consumers' interests, which obliges firms to effectively incorporate those interests in their strategy, business model and decision-making process, reflecting their overarching obligation to act in the best interests of their consumers. New measures on vulnerability are expected to be included in the updated code as part of the overarching duty on firms to secure the interests of customers. Firms would also be required to secure the interests of customers in vulnerable circumstances. This approach seeks to embed an understanding of vulnerability within the operation of a firm and ensure the needs of consumers in vulnerable circumstances and that a commitment to addressing these needs is an integral part of a firm's customer focus. This should allow firms to be prepared to assist when the needs of consumers in vulnerable circumstances arise.

The Central Bank also consulted on the introduction of a new definition of financial abuse to mean the wrongful or unauthorised taking, withholding, appropriation or use of customers' moneys assets or property; any act or omission by a person, including through the use of power of attorney, guardianship or any other authority regarding a customer, to gain control through deception, intimidation or undue over the customer's money, assets or property; or wrongfully interfere with or deny the customer's ownership, use, benefit or possession of the customer's money, assets or property.

A lot of work has been done on updating the Central Bank consumer protection code to help customers in vulnerable situations. However, I am told that in relation to the amendment, and taking account of the views of the Supreme Court in the Zalewski case, in which the Supreme Court held that any public administration body, such as the FSPO, which provides a complainant with a route to redress as an alternative to court is operating within the confines of the provisions of Article 37.1 of Bunreacht na hÉireann and is administrating justice. It is against this constitutional background that the FSPO operates as a quasi-judicial function and, for that reason, must be especially cognisant of the need to adhere to fair procedures. I am advised that legally we cannot do what is proposed. The Deputies are saying we can but I have to take the advice I am being given, which is that we cannot do it. I accept the rationale they have brought forward and their bona fides on this, but I have to take the advice I am given.

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