Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 34: To ask the Minister for Finance his plans to improve protection for customers of debt management companies in view of recently expressed concerns by the Central Bank concerning the operation of one such company; and if he will make a statement on the matter. [5624/12]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 64: To ask the Minister for Finance if he has advanced plans to regulate businesses providing debt management services to citizens; and if he will make a statement on the matter. [6138/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 34 and 64 together.

I am advised by the Central Bank that following the failure of Home Payments Limited in mid-2011 it inspected the bill payment and debt management industry to assess whether firms providing these services are carrying out any activity that falls to be regulated by the Central Bank and whether consumer funds may be at risk. The first phase of the Central Bank's review has concluded with the Bank writing to a number of companies notifying them that their activities are subject to regulation by the Central Bank and requiring that immediate steps be taken to provide additional protection to client funds. In one case recently reported in the media the Central Bank has also intervened to communicate with clients and creditors. Those companies subject to Central Bank regulation now need to seek authorisation from the Central Bank or to change their business model. In the meantime the Central Bank is requiring that certain controls are in place regarding client assets.

On the basis of advice received from the Central Bank and my officials I have agreed that all debt management and debt advice services of firms should be subject to regulation. I have has asked my officials to prepare the necessary legislation which, subject to Government approval, will be brought forward as a Committee Stage amendment to the Central Bank (Supervision and Enforcement) Bill 2011.