Michael McGrath (Cork South Central, Fianna Fail)
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49. To ask the Minister for Finance his plans to address the inability to complain of customers who become aware of difficulties with a financial product more than six years after they initially purchased it, in particular long-term products such as endowment mortgages, certain investments and pensions; and if he will make a statement on the matter. [17528/16]

Michael Noonan (Limerick City, Fine Gael)
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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.

This legislation also provides the Financial Services Ombudsman with various powers in order to determine jurisdiction on a complaint. Included in this is a statutory timeframe, section 57BX (3)(b) of the Act provides:-

"A consumer is not entitled to make a complaint if the conduct complained of - occurred more than 6 years before the complaint is made."

The legislation prohibits the Financial Services Ombudsman from examining any aspect of a complaint where the conduct being complained of occurred more than 6 years from receipt of the Complaint in his Office.  The Financial Services Ombudsman has no discretion in relation to the 6 years rule.

As the Deputy may be aware, the Department is progressing the development of legislation to underpin the amalgamation of the Financial Service Ombudsman and the Pensions Ombudsman. The Government agreed outline Heads of a Bill to provide for the amalgamation of offices in 2015 and both offices have been physically merged in one location. Recent legislative changes have enabled the appointment of the Financial Services Ombudsman as Pensions Ombudsman.

The question of the timeframe under which complaints can be reviewed is a policy matter which will be considered as the legislation to effect the amalgamation is being developed further. I am of course mindful of the need to provide the necessary protection to the consumer over the longer term. However, the issues in this regard are complex involving a range of considerations including the interface with the statute of limitations, existing consumer protection laws, complaints mechanisms and the availability of records.

As the Deputy will be aware, this piece of legislation is currently on the second list of the current legislative programme that is, Bills that are expected to undergo Pre-Legislative Scrutiny this session.