Michael McGrath (Cork South Central, Fianna Fail)
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90. To ask the Minister for Finance if a complaints process has been put in place for the 2,141 SMEs which were placed into a group by a bank (details supplied); if this process is operational for these customers here; and if he will make a statement on the matter. [12647/17]

Michael McGrath (Cork South Central, Fianna Fail)
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91. To ask the Minister for Finance if the Central Bank has been asked to approve any complaints process put in place for the 2,141 SME customers involved in an issue (details supplied); if the Central Bank approved this complaints process; and if he will make a statement on the matter. [12648/17]

Michael McGrath (Cork South Central, Fianna Fail)
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92. To ask the Minister for Finance if he or the Central Bank are satisfied that the 2,141 Irish SME customers placed into a group by a bank (details supplied) have been contacted appropriately and directly by the bank outlining clearly the complaints process put in place; if not, when the Central Bank expects this communication to take place; and if he will make a statement on the matter. [12649/17]

Michael McGrath (Cork South Central, Fianna Fail)
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93. To ask the Minister for Finance if the complaints process for the 2,141 SME customers of a bank (details supplied) placed into a group is the exact same as the one put in place by the bank for UK customers; if the independent third party was appointed by the bank; if the Central Bank is satisfied with the appointment process of the independent third party; if an Irish independent third party will be appointed or if the British independent third party will be asked to judge on Irish cases; if he and the Central Bank are satisfied that a British independent third party will be able to adequately assess Irish cases; and if he will make a statement on the matter. [12650/17]

Michael McGrath (Cork South Central, Fianna Fail)
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94. To ask the Minister for Finance if, in the case of the complaints process put in place for the 2,141 Irish SME customers of a bank (details supplied) placed into a group, it is standard practice to deduct refunds to the customers from debt outstanding from the customers; if he and the Central Bank are satisfied that this compensation is adequate for SME customers whose financial position may have been worsened by extra fees applied as a result of being placed in the group; and if he will make a statement on the matter. [12651/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 90 to 94, inclusive, together.

I am confident that legislative changes since the financial crisis have equipped the Central Bank with an array of investigative, regulatory and enforcement powers to ensure that regulated financial service providers adhere to the requirements of financial services legislation.  These changes include significantly enhanced powers for the Central Bank to gather information under the Central Bank (Supervision and Enforcement) Act 2013 which broadened the Banks' information gathering and authorised officer powers.

I am informed by the Central Bank that, while it cannot generally comment on interactions with regulated firms, Ulster Bank Ireland D.A.C. is engaging with the Bank in relation to this matter.  This is properly in line with the 2013 Act and its revised provisions for potential enforcement actions.  

On this matter, the Ulster Bank Chief Executive recently stated that RBS has announced a new complaints review process overseen by an independent third party, and, the automatic refund of complex fees to SME customers in Global Restructuring Group (GRG) in the United Kingdom and the Republic of Ireland between 2008 and 2013.  It is a matter for the Central Bank to determine whether it is satisfied with this approach and whether it will utilise its extensive powers under the 2013 Act. 

I am informed that the Central Bank does not intend to provide further information at this time on the process that is currently underway.  I am sure that Deputies will note that the Central Bank is properly undertaking its enforcement role by the recent sizeable settlements in enforcement cases.

In addition to this enforcement role, the Deputy may be aware that the Central Bank is proactively regulating the financial system and has issued regulations aimed at protecting SMEs when dealing with regulated and unregulated loan owners, whose loans must be serviced by credit servicing firms under the Consumer Protection (Regulation of Credit Servicing Firms) 2015.  These strengthened Central Bank regulations include the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 which came into operation for regulated lenders other than credit unions on 1 July 2016 and, in the case of credit unions, on 1 January 2017.  These revised SME Regulations introduce specific requirements for regulated lenders, including:

- Contacting SME borrowers who have been in arrears for 15 working days;

- Warning SME borrowers if they are in danger of being classified as not co-operating; and

- Expanding the grounds for appeal and setting up an internal appeals panel.

Under these SME Regulations, regulated financial services firms must have a complaints handling procedure in place.  Any complaints against financial institutions should first be discussed with the institution concerned.