Written answers

Tuesday, 30 April 2013

Department of Justice and Equality

Personal Insolvency Act

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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431. To ask the Minister for Justice and Equality the professional qualifications and requirements that are required of a personal insolvency practitioner; and if he will make a statement on the matter. [19979/13]

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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437. To ask the Minister for Justice and Equality the safeguards that exist to ensure that personal insolvency practitioners act in an independent manner, particularly in vuew of the fact that PIPs will be constantly dealing with the same creditor banks where familiarity may undermine independence. [20026/13]

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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I propose to take Questions Nos. 431 and 437 together.

The independent role played by Personal Involvency Practitioners (PIPs) will be critical to the success of the new debt solutions under the Personal Insolvency Act 2012. A PIP will have to be free from any undue influence, guidance or control by any other person that could prevent or hinder their performance of their functions under the Act. Therefore it is important that we provide a strong regulatory framework that will cover the control and supervision of individuals who will provide services under the provisions of the Personal Insolvency Act.

All PIPs will be authorised and regulated by the Insolvency Service of Ireland, in accordance with Part 5 of the Personal Insolvency Act 2012 - Sections 159 to 169. In Part 5 of the Act, Section 163 sets out how an individual may make application to carry on practice as a Personal Insolvency Practitioner, and Section 164 the matters which the Insolvency Service must take into account in deciding whether an applicant should be authorised as a PIP or whether authorisation is to be refused.

The Insolvency Service of Ireland will shortly publish the Regulations under Section 161 of the Act in regard to the authorisation and regulation of personal insolvency practitioners. The Regulations will set out the necessary criteria in regard to qualifications. As I have previously stated, I expect that accountants, lawyers and a broad range of financial advisors may wish to seek regulation as practitioners, but it will not be confined to these professions. The qualifying criteria for becoming a practitioner will be rigorous and will be based on a series of important considerations such as educational and professional qualifications, relevant knowledge and experience, and the completion of a course of study - by passing an exam - on the laws and practice generally, as they apply in the State, in relation to the insolvency of individuals and knowledge of the Act. Applicants will also have to demonstrate to the satisfaction of the Insolvency Service that they are fit and proper persons, that they are financially sound, and that they have the organisational capability and the resources to carry on the practice of being a practitioner. They will have to hold professional indemnity insurance as well as being tax compliant.

Where a person has concerns that improper conduct by a PIP has occurred or is occurring, they may make a complaint in writing to the Insolvency Service. The Act provides that the Insolvency Service, following receipt of a complaint, or of its own volition, may investigate any improper conduct by a PIP. This may result in the suspension or revocation of the authorisation of the personal insolvency practitioner or the imposition of sanctions in accordance with the Act.

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