Clare Daly (Dublin North, Socialist Party)
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94. To ask the Minister for Finance his plans to review section 57 CL (1) of the Central Bank and Financial Services Authority of Ireland Act 2004, to facilitate those with small claims having the right to appeal a decision of the Financial Services Ombudsman without the expense of going to the High Court. [23387/13]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions.

The Financial Services Ombudsman’s Bureau was established under the Central Bank and Financial Services Authority of Ireland Act, 2004. The legislation provides for an independent, impartial investigation and resolution of disputes between consumers and Financial Service Providers.

The Financial Services Ombudsman was set up to adjudicate on unresolved disputes between complainants and financial service providers in an independent and impartial manner. Prior to the establishment of the Financial Services Ombudsman complaints from consumers of insurance and credit institutions were handled by two voluntary ombudsman schemes. The “McDowell Report” in 1999 recommended the establishment of a single statutory ombudsman scheme for all financial services provided by regulated entities, to operate independently of the Single Regulatory Authority and to operate as a “one – stop – shop” for regulated entities and their customers.

The Financial Services Ombudsman is an out of court redress body that is free to the complainant.

If a consumer has made a formal complaint to the financial institution in question and if not satisfied with the reply they can contact the Financial Services Ombudsman in relation to the matter. The Financial Services Ombudsman investigates, in an impartial and independent manner, complaints from individual customers and small businesses who have unresolved disputes with financial service providers who are either regulated by the Central Bank or are subject to the terms of the Consumer Credit Act 1995. All personal customers, unincorporated bodies, charities, clubs, partnerships, trusts, and limited companies with a turnover of €3,000,000 or less can complain to the Ombudsman.

The Financial Services Ombudsman has the power to award compensation of up to a maximum of €250,000 or €26,000 annuity where a complaint is upheld. The decisions of the Financial Services Ombudsman are binding on both parties subject only to an appeal by either the complainant or the financial service provider to the High Court.

I have at present no plans to recommend to Government a review of section 57CL(1) of the Central Bank and Financial Services Authority Act 2004.