Róisín Shortall (Dublin North West, Social Democrats)
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231. To ask the Minister for Finance if he has yet made a decision to amend section 54BX(3)(b) of the Central Bank and Financial Services Authority of Ireland Act 2004 in order that customers who were missold financial products, such as endowment mortgages, are in a position to pursue claims against the sellers of such products within a reasonable period of identifying this misselling; and if he will make a statement on the matter. [24842/16]

Michael Noonan (Limerick City, Fine Gael)
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I understand that the Deputy may be referring to the time limits that applies for complaints to the Financial Services Ombudsman.

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 current legislation thus 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 the 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, including complaints regarding the mis-selling financial products, such as endowment mortgages, 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.

This piece of legislation is currently on the 'second list' of the current legislative programme set out by the Office of the Government Chief Whip that is, Bills that are expected to undergo Pre-Legislative Scrutiny this session.  We hope to conclude the legislation shortly.

Pearse Doherty (Donegal, Sinn Fein)
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232. To ask the Minister for Finance the reason credit servicing firms do not contribute via the industry funding levy; and if he will make a statement on the matter. [24857/16]

Michael Noonan (Limerick City, Fine Gael)
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Credit Servicing Firms have only fallen within the supervisory remit of the Central Bank since 8 July 2015 on the commencement date of the Consumer Protection (Regulation of Credit Servicing) Act 2015. Prior to this, credit servicing firms were unregulated and did not hold banking licences and therefore such firms fell outside the scope of the Industry Funding Levy.

At present there are 14 credit servicing firms active in the State, each of which has notified the Central Bank that they wish to avail of the transitional provisions provided for under Section 34F of the Central Bank Act, 1997, to become authorised firms. These firms are deemed authorised to carry on that business until such time that they are either granted or refused authorisation by the Bank.

The Central Bank proposes to levy all Credit Servicing Firms in 2016, whether authorised or deemed authorised.