Results 42,481-42,500 of 46,353 for speaker:Simon Harris

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: Deputy Tóibín might recap, if he does not mind.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: My apologies.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: I thank the committee for providing a few minutes for the switchover. I have followed some of the debate and I know the Minister has responded to some of the issues raised by the amendments. Let me add a few of my own thoughts on the matter. First, we must remind ourselves what this Bill is and is not about. The Bill is not about some of the issues that Deputy Boyd Barrett has raised....

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: That is very reasonable of Deputy Fleming and I will try to be brief. The purpose of the legislation is to restore borrowers to the position they were in prior to the sale of their loan book. While we welcome the thrust of the Deputy's amendments, which seek to ensure that the Central Bank codes will continue to apply when loan books are sold, we are not in a position to accept the...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: I thank Deputy Fleming and appreciate the intention of this amendment. Although I agree with the Deputy's objective, I cannot accept the amendment as the provision is already made in the legislation. The Central Bank Act 1997, as amended, already specifies at section 29 that a person shall not carry on a regulated business unless the person is the holder of an authorisation. This Bill will...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: Yes, and existing firms are "grandfathered", in other words, they will have to have it within the three months.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: Within the three months, the existing firms are presumed to be authorised, but they have to have been authorised within the three months. If they have not gone through the authorisation process within the three months they will be operating illegally. They have a three-month period in which to go through the authorisation process. That is for existing firms. New firms will have to be...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: I move amendment No. 16:In page 6, line 23, after “person” to insert the following:“(other than a regulated financial service provider taken to be authorised to carry on the business of a credit servicing firm by virtue of section 28(3))”.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: I thank the Deputy. The model which operates for regulation by the Central Bank is that a single entity is responsible and answerable to the Central Bank for actions it undertakes, or which are undertaken on its behalf. If a firm is undertaking credit servicing solely or exclusively for a firm which is already regulated, then the regulated firm is answerable to the Central Bank for any...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: No, the essence of what the Minister said was to ensure there is a regulated entity, somebody is answerable and there is consumer protection. The owner bank is responsible for everything the credit servicing firm does. Somebody is responsible at all times, therefore the consumer is protected. The practice currently takes place. As it stands, the regulated financial service provider is the...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: That is the Deputy's understanding. Let me try to clarify exactly what the position is. There is no difference in emphasis between me and the Minister, Deputy Noonan.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: There is no rift. Do not get too excited. The hypothetical Greek bank to which Deputy Sean Fleming referred would be regulated for conduct of business by the Irish Central Bank. The idea that there is no link with the Irish Central Bank is incorrect.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: All regulated firms can outsource. This is the reality of the world in which we live. However, they must ensure the agents to which they outsource comply with regulation, or the regulated firm has the liability in terms of fines or sanctions. If an Irish bank hires a credit servicing firm, the Irish bank remains responsible. I do not see why we would double regulate, and I do not think it...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: It is good to tease these matters out. Let me try to be clear. When we say conduct of business must be regulated by the Irish Central Bank, we refer to the interaction the bank has with its customer, and it is done here, whereas prudential issues such as solvency are regulated in Greece. The legislation is about consumer protection, which will be regulated by the Irish Central Bank.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: The conduct of business by the Greek bank we are using as an example must be regulated by the Central Bank of Ireland. The Deputy may feel free to reflect on it between now and Report Stage. The suggestion that there is something going on in Greece, the Irish consumer has no protection here and conduct of business regulation is done in Greece is not true. In the Greek bank example, the...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: Yes, but the prudential insolvency issue comes under the home regulator, in this case Greece.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: The Department has discussed it with the Central Bank and is happy the Central Bank will have all the powers it requires under the existing framework in the example the Deputy cited. We have that assurance. The essence of the Bill is to ensure the Irish consumer has the same level of protection he or she had before the loan book was sold, which will be the case.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: I move amendment No. 20:In page 6, after line 42, to insert the following:“Obligation on credit servicing firm and holder of legal title to credit 5. The Central Bank Act 1997 is amended by inserting the following section after section 34F (inserted by section 4):“34G. (1) A credit servicing firm shall not, on its own behalf or on behalf of, or on the instructions of, a person...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: I welcome Deputy Boyd Barrett's acknowledgement that we are trying to address the concerns expressed on Second Stage by adopting a belt and braces approach. Without getting into an ideological debate on banking, a considerable number of people would like to take out mortgages to purchase their own homes. Home ownership is important for people in this country and many people want to get on...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015: Committee Stage (27 May 2015)

Simon Harris: Without sounding circular in my position on this, I do not see what is earth-shattering about the comment by the Minister for Finance that if one takes out a loan of €300,000, by signing on the dotted line one has committed to paying back that loan. If somebody decides to sell one's loan to somebody else, one still owes the money. We need to make sure that people in such...