Written answers

Tuesday, 21 January 2014

Department of Finance

Financial Services Regulation

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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190. To ask the Minister for Finance in view of the latest revelations regarding a sub-prime mortgage lender (details supplied), if he will take urgent steps to introduce legislation to prevent persons with criminal convictions in other jurisdictions from being granted money lending or mortgage lending licenses here. [2288/14]

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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193. To ask the Minister for Finance the way a convicted fraudster, who dodged long-standing creditors in another jurisdiction, received regulatory approval as a licensed lender from the Central Bank of Ireland when a key requirement is that firms must be of the highest financial and personal probity; and if he will make a statement on the matter. [2370/14]

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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194. To ask the Minister for Finance his views on the establishment of an inquiry within the Central Bank of Ireland to establish the facts as to how a retail credit licence was granted to an organisation (details supplied); and if he will make a statement on the matter. [2392/14]

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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206. To ask the Minister for Finance if he will call for a full investigation by the relevant authorities into the activities of a person (details supplied); and if he will make a statement on the matter. [2507/14]

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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208. To ask the Minister for Finance if he will confirm that all the required application forms and required details were supplied to the Central Bank by a person (details supplied) at the time an application was made; and if he will make a statement on the matter. [2509/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 190, 193, 194, 206 and 208 together.

Pursuant to section 33AK of the Central Bank Act 1942, the Central Bank cannot disclose confidential information in relation to this individual.

However, generally, retail credit firms are required to be authorised under Part V of the Central Bank Act, 1997 and a register of all such firms is maintained on the Central Bank of Ireland's website.

Authorised Retail Credit Firms are required to comply with (among others) the:

- Central Bank Act 1997

- Consumer Protection Code 2012

- Code of Conduct on Mortgage Arrears

Compliance with this legislation is monitored on an on-going basis through the supervision process.

Fitness & Probity (2012)

On 1st October 2010, Part 3 of the Central Bank Reform Act, 2010 created for the first time in Irish law a harmonised statutory system for the regulation by the Central Bank of Ireland of persons performing controlled functions or pre-approval controlled functions in regulated financial service providers.

The Fitness and Probity Standards Code issued under Section 50 of the Central Bank Reform Act 2010, which is available on the Central Bank website, specifies the Standards of Fitness and Probity which all persons performing controlled functions or pre-approval controlled functions (except where those functions are performed in and on behalf of Credit Unions) shall, at a minimum, comply with.

Fitness & Probity (2007 - 2011)

Prior to the introduction of the Central Bank Reform Act, 2010 applicants for authorisation were required to complete a comprehensive individual questionnaire outlining, inter alia, details of their experience, reputation and character, business interests in other financial entities and other firms and shareholdings in the firm. Applicants were also required to authorise the Central Bank to make enquiries of relevant authorities to check on the background of the applicant.

Where a proposed approved person had been convicted, on indictment, of dishonesty, fraud, money laundering, theft or financial crime within the previous 10 years, that would be regarded as an indication that a person was not proper and would, in principle, bar a person from holding a position as an Approved Person. Where a person had a conviction dating beyond 10 years, such information should be notified. Older convictions on indictment would be reviewed in order to adjudicate upon the application.

On examination of any material received, an applicant may be asked to supply further information or invited to a meeting with the authorisation staff in the Central Bank.

The company to which the Deputy refers holds an authorisation as a retail credit firm since 4 November 2009.

If a Deputy has any evidence of wrongdoing by the company, I would recommend that he brings it to the attention of the Central Bank.

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