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

I will deal with amendment No. 100 and in the knowledge that the Senator will withdraw it I will not say anything unkind about it. I will also deal with amendments Nos. 136 to 140, inclusive, and amendment No. 165. The new Part V of the Bill comprising sections 147 to 174, proposed to be inserted by amendments Nos. 136 to 163, make provision for the regulation, supervision and discipline of PIPs. The insolvency service will be responsible for the direct regulation of personal insolvency practitioners. In response to the many representations I have received in this regard I wish to make clear that we will not be imposing any particular restrictions as the type of profession of persons who will be licensed to perform this function. The practice in other countries is that such insolvency practitioners tend to be accountants or lawyers but can also be other professionals in the broad financial services sectors. Many of these will already be regulated as appropriate by the Central Bank for the provision of other financial services. This is the approach I intend to take. Suitable persons meeting the formal fitness to practise and competence criteria who have indemnity insurance and meet the other requirements of the legislation will be able to apply for registration on an individual, not corporate, basis.

I will now deal with the detail of the new sections proposed to be inserted by amendments Nos. 136 to 140, inclusive. Amendment No. 136 proposes the insertion of section 147, which provides for the interpretation of certain terms used in the new Part 5. Amendment No. 137 proposes the insertion of section 148. This new section provides that it will be an offence for a person to act as a PIP who is not entitled to do so by virtue of the legislation. Amendment No. 138 proposes the insertion of section 149, which gives the insolvency service the power to make regulations for the purpose of the control and supervision of personal insolvency practitioners and the protection of debtors and creditors who are or may become parties to debt settlement arrangements or personal insolvency arrangements. These regulations may provide for matters such as procedures governing the authorisation of persons to carry on practice as PIPs, standards to be observed by them, qualifications and requirements as to competence, and information they must provide to the insolvency service. I mention in particular paragraph (f), which provides that the regulations may provide for the circumstances and purposes for which a personal insolvency practitioner may charge fees or costs or seek to recover outlays. Amendment No. 139 proposes the insertion of section 150, which requires the insolvency service to establish and maintain a register of personal insolvency practitioners that will be published on the website of the insolvency service for the benefit of those who wish to identify individuals qualified to so act. Amendment No. 140 proposes the insertion of section 151. This section provides that an application for an authorisation to carry on practice as a PIP must be accompanied by certain specified evidence and documents as well as the prescribed fee. Applicants must provide evidence as to their competence, including details of education, training and experience. In particular, applicants must provide evidence of knowledge of relevant Irish insolvency legislation, which will include knowledge of this Bill. Applicants must also furnish a certificate from an accountant certifying that proper financial systems and controls are or will be in place for the protection of moneys received from debtors. They must also provide evidence of their professional indemnity insurance. The insolvency service will make such inquiries and examinations as necessary with regard to an applicant's character, competence and financial position. In light of the extensive provisions of the new Part 5, as outlined, I ask Senators to consider withdrawing their amendments regarding the regulation of PIPs.