Noel Grealish (Galway West, Independent)
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98. To ask the Minister for Finance his plans to strengthen the role of the Financial Services Ombudsman to prevent financial institutions appointing receivers and taking court action on housing properties while such properties are under investigation by the ombudsman for final legally binding determination; and if he will make a statement on the matter. [24842/17]

Michael Noonan (Limerick City, Fine Gael)
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I understand from the Financial Services Ombudsman (FSO) that 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.

While a consumer may not make a complaint if the conduct complained of is or has been the subject of legal proceedings, the FSO may accept a complaint against a financial services provider who has begun legal proceedings if the FSO reasonably suspects that the provider began the proceedings in order to prevent the making of the complaint or to frustrate or delay the investigation.

It is my intention that these existing provisions will be mirrored in the legislation to amalgamate the Financial Services Ombudsman and the Pensions Ombudsman currently before the House.