Nicky McFadden (Longford-Westmeath, Fine Gael)
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To ask the Minister for Social Protection the sector of professionals who will be permitted to advise mortgage holders as part of the new advisory service; if financial brokers will be permitted to advise clients in this area of mortgage arrears; and if she will make a statement on the matter. [47731/12]

Joan Burton (Dublin West, Labour)
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I recently announced a three-phased approach to establishing a comprehensive Mortgage Arrears Information and Advice Service to provide the necessary supports to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two involve the enhancement of the website and the establishment of a Mortgage Arrears Information Helpline within the Citizens Information Board both of which focus on the provision of comprehensive mortgage arrears information in particular to people in arrears or pre-arrears. The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. This advice will be provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland who have agreed to participate and support this independent service.

When a lender is proposing longer-term mortgage resolutions, the lender will advise the borrower to obtain independent financial advice on the proposed arrangement and, if the borrower wishes to avail of this option, that the lender will pay €250 to an accountant of the borrower’s choosing for the provision of this advice. An operating protocol for the provision of this advice has been agreed between the main accountancy bodies and the lenders. The general scope of the advice will be limited to the borrower’s principal private residence. The advisory framework has commenced with practising accountants because they already operate within a regulatory regime which includes qualitative oversight by their regulating bodies and in these circumstances it was possible to establish the advisory framework for people with mortgage distress within a relatively short timeframe.

There is nothing to inhibit other financial intermediaries from continuing to give advice on mortgages as requested by borrowers. While the advisory framework will be monitored on an on-going basis, it is not intended to conduct a full review of the service before June 2013. The review will be undertaken to ensure that it is meeting its objectives and will encompass all aspects of the service including if participation is extended to other interested parties, the criteria that would be required in terms of relevant qualifications, experience, independence, professional indemnity insurance, etc. The accountancy bodies have notified their members about the new service. To date, some 2,700 accountants have confirmed to their accounting body that they wish to be part of the panel and their details are now listed on a county by county basis on the website .