Pearse Doherty (Donegal, Sinn Fein)
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170. To ask the Minister for Finance when he and the Central Bank will implement the spirit of the Dáil Éireann motion passed on 26 January 2017 on tracker mortgages including the setting of a deadline for victims of the tracker mortgage scandal to be compensated within; and if he will make a statement on the matter. [5420/17]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank of Ireland is aware of the Motion on tracker mortgages which was carried in Dáil Éireann on 26 January last.

The Tracker Mortgage Examination is the most significant supervisory review undertaken in the context of the Central Bank's consumer protection remit. In line with its mandate to ensure that the best interests of consumers are protected, the Central Bank's immediate focus is to ensure that lenders prioritise the identification of impacted customers and stop the harm.

The Examination is a key priority for the Central Bank and it is working to ensure that the Examination is completed as soon as possible. However, it is also critical that each lender carries out a thorough, comprehensive and robust review, which achieves a fair outcome for all customers. While significant progress has been made, the Central Bank advises that due to the scale and complexity of the review, it will take some further time to complete.

Specific timelines have been set for all lenders to complete their internal reviews, and some lenders will have their internal reviews completed sooner than others depending on the size of their mortgage books and the complexities associated with them completing the Examination. Some lenders depending on progress have commenced rate rectification, redress and compensation, as appropriate.

Based on current progress, the Central Bank expects that all relevant lenders will have identified and commenced engagement with most impacted customers by mid-2017. Payment of redress and compensation, processing and consideration of any customer appeals and the Central Bank's own assurance work will continue beyond this point for some lenders.

The Central Bank has set down a robust framework whereby lenders' internal reviews will be overseen by independent third parties.  As part of the Examination, the Central Bank has made very clear what it expects of lenders in terms of redress and compensation to impacted customers, namely:

- Lenders will ensure that harm is stopped at the earliest possible time after each group of impacted customers is identified;

- Interest rates applied to impacted customers' accounts are to revert to the appropriate tracker interest rate or impacted customers are to be given the opportunity to revert to such a rate where relevant;

- Redress should ensure that impacted customers are returned to the position they would have been in had lenders' failure not occurred;

- Compensation, that reflects the detriment suffered by the individual customer, is to be provided by lenders; and

- An additional payment is to be provided to impacted customers to enable them to take independent professional advice regarding the redress and compensation offers made to them.

The Examination framework also requires lenders to establish an independent appeals process to deal with customers who are dissatisfied with any aspect of the redress package that they receive from lenders in respect of these matters. While the Central Bank expects the lenders' reviews to deliver fair outcomes for customers, the Bank believes that the appeals process is a very important part of the overall framework to ensure that there is an independent and transparent process in place for any impacted customer who feels that their particular circumstances were not appropriately considered.

The Central Bank will consider appropriate supervisory action, up to and including enforcement action, where necessary. All possible angles, including potential individual culpability, will be thoroughly investigated and analysed in the context of the legal framework. Enforcement measures will be deployed as appropriate, including investigating issues and taking cases under the Central Bank's Administrative Sanctions Procedure together with the use of its fitness and probity powers.

One enforcement action has already concluded, in which the Central Bank fined Springboard Mortgages €4.5m, the largest fine ever collected by the Central Bank. The Central Bank also advises that two other enforcement cases are ongoing.

The Deputy will also be aware that last year the Law Reform Commission published for consultation an Issues Paper on matters relating to regulatory enforcement and corporate offences. The Commission is continuing to analyse the many aspects of this project, taking account of the many submissions it received on its Paper. It is understood that the Commission's current intention is to publish its final report and recommendations later this year and, when to hand, that report will be considered by relevant Departments and regulatory bodies.