Gerry Horkan (Fianna Fail) | Oireachtas source

I move amendment No. 13:

In page 7, between lines 14 and 15, to insert the following:“Section 57CI of the Principal Act (as inserted by section 16 of the Act of 2004) is amended by the insertion of the following after subsection (5):

“(5A) The Financial Services Ombudsman Council shall review on an annual basis the maximum compensation ceiling prescribed by the Regulations of the Financial Services Ombudsman Council, with

particular regard to the number and scale of upheld or substantially upheld complaints where the loss incurred on the complainant exceeds the maximum compensation ceiling under the current Regulation.”.”.

I understand that this was discussed on Committee Stage. The amendment and the new section arises to address a concern of the Free Legal Advice Centres that had flagged the issue before, and refers to the fact that there is a maximum compensation ceiling. I understand that there is a difference between rectification, which does not have a ceiling, and compensation, which does. Equally this amendment does not ask for an increase in the ceiling, but rather that the Financial Services Ombudsman council should, "review on an annual basis the maximum compensation ceiling prescribed by the regulations, with particular regard to the number and scale of upheld or substantially upheld complaints where the loss incurred on the complainant exceeds the maximum compensation ceiling".While €250,000 looks like and certainly is a lot of money, it is not unreasonable over time that the FSO council should review the ceiling. It does not have to be a detailed process and could simply be a matter of reviewing the appropriateness of the ceiling. I ask the Minister of State to consider it. I accept what he said on Committee Stage at the select committee, but it is worthy of tabling for discussion today. I appreciate the difference between rectification and compensation but all we are asking for is that there would be a review on an annual basis of the maximum compensation ceiling. Perhaps the Minister of State and the Department could take that on board.