Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context

Question 455: To ask the Minister for Finance if his attention has been drawn to the plans of certain financial institutions to raise the deposit required by a first time buyer to 20%; and if he will make a statement on the matter. [32807/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I have no responsibility for determining the amount of the deposit which financial institutions require from first time buyers. That requirement is a commercial decision for each individual institution. In deciding on the amount of deposits that they require, I expect the lenders to act responsibly.

My role, as Minister for Finance, is to prepare draft legislation for the approval of the Oireachtas to provide an appropriate legislative framework for the regulation of the financial services sector with a particular focus on the consumer.

Both the Financial Regulator and the Financial Services Ombudsman play an important role in Consumer Protection.

The Financial Regulator's Consumer Protection Code (the Code) is applicable to all entities which the Financial Regulator regulates. Under the General Principles of the Code, all regulated firms are required to:

Act honestly, fairly and professionally in the best interests of the customer;

Make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer; and

Seek to avoid conflicts of interest.

In addition, there are provisions in the Code, for the protection of those persons which are classified as 'consumers' under the Code, which set specific requirements with which the regulated entity must comply in areas such as its terms of business, provision of information to the consumer, knowing the consumer and suitability.

Regulated entities are required to comply with the Code and the Financial Regulator will investigate any matter brought to its attention where it appears that these, or any other regulatory requirement, may have been breached by an entity.

The Deputy may wish to note that where a consumer has a complaint regarding his/her treatment which has not been resolved through the internal complaint resolutions systems of a regulated entity, the consumer may bring the matter to the attention of the Financial Services Ombudsman for investigation.