Noel Grealish (Galway West, Independent)
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118. To ask the Minister for Finance the reason financial institutions are able to legally appoint receivers to properties in dispute while such properties are being investigated by the Financial Services Ombudsman for final determination; his plans to amend the law in this regard, in view of the fact that it can, and does, take many months for the ombudsman process to conclude; and if he will make a statement on the matter. [14472/17]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Financial Services Ombudsman (FSO) that when a complaint is made by a Consumer every effort is made by the FSO to facilitate the parties in achieving a mediated settlement with the help of his dedicated Dispute Resolution team. If no agreement is reached, the matter proceeds to a more formal investigation and adjudication, and the parties are issued with a legally binding Finding. The FSO aim to have the Dispute Resolution process completed within 3 months from receipt. If Dispute Resolution is not successful, the length of time taken to investigate and adjudicate depends on the number of exchanges that take place between the parties. A full exchange is required in order to ensure fair procedures, and typically this exchange of documents takes about 4-6 months. Upon completion of the exchange, the FSO aim to issue a finding within 3 months. If a complaint is received, arising from a situation of arrears on a commercial borrowing (Buy to Let/Investment Properties), the FSO will consider the protections afforded to borrowers and commercial mortgage holders by the Central Bank of Ireland's Code of Conduct for Business Lending to Small and Medium Enterprises and the Consumer Protection Code (CPC).

In addition, if a Receiver is appointed by the lender, either before a complaint is made to the FSO, or after the FSO has begun dealing with the matter, the appointment of the Receiver will not impede the mediation, investigation or adjudication of the complaint by the FSO. In that event, the FSO will investigate whether the mortgage deed in place permitted the appointment of a Receiver, and secondly whether it was reasonable and fair for the lender, at the particular point in time, and in the overall circumstances, to proceed with the appointment of a Receiver.

If the FSO upholds the complaint and takes the view that it was wrongful of the lender to have appointed a Receiver, the FSO can direct compensation of up to €250,000 and/or direct such rectification as considered to be appropriate in the circumstances.