Michael Healy-Rae (Kerry, Independent)
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487. To ask the Minister for Finance if a matter will be addressed in relation to investments by persons in a company (details supplied); and if he will make a statement on the matter. [15296/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am aware of the matter that the Deputy has raised, which my officials are monitoring.

The Central Bank of Ireland is the independent regulator of financial services providers and financial markets in Ireland. I am informed by the Central Bank that it cannot comment on investigations, including confirming whether an issue or firm is the subject of an investigation.

There is a strong legislative framework in place to protect consumers of financial services in Ireland. This includes the following:

The Financial Services and Pensions Ombudsman (FSPO) is the statutory body tasked with the investigation, mediation and adjudication of complaints about the conduct of financial or pension service providers. If a consumer wishes to pursue a complaint in relation to a regulated financial service provider, they must firstly make a complaint to the provider. If the complaint is not resolved, they can then make a complaint to the FSPO. When the FSPO receives a complaint, it is assessed to determine whether the FSPO can proceed to investigate the complaint. The FSPO has the power to direct a financial service provider to pay compensation of up to €500,000 to a complainant. He can also direct that a financial service provider rectify the conduct that is the subject of the complaint. There is no limit to the value of rectification he can direct.

The Investor Compensation Scheme deals with compensation claims by eligible investors. Claims can only be accepted from eligible investors when a member firm of the Investor Compensation Company Limited fails and cannot return investment instruments or client money in accordance with legal and contractual obligations. It is important for investors to understand that the Investor Compensation Scheme does not pay compensation in relation to any investment products which fall outside the definition of investment instrument, nor does it pay compensation for any losses incurred due to receiving bad investment advice, if client investments are poorly managed or if the investment performed poorly due to market conditions or other economic forces.

In terms of powers available to the Central Bank, the Consumer Protection Code applies to regulated activities of regulated entities operating in the State.

The general principles of the Consumer Protection Code note that a regulated entity must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market, act with due skill, care and diligence in the best interests of its customers, and does not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service.

Regulated firms may also sell unregulated products, i.e.,  products which fall outside of the relevant legislation and thus not under the Central Bank's regulatory framwork.  However, in such a situation the Central Bank's Consumer Protection Code, specifically articles 4.8 and 4.9, requires a regulated entity to distinguish between their regulated and unregulated services that is provided to a client.

Further details related to the Consumer Protection Code detailing the rules and principles that all regulated financial services firms must follow when providing financial products and services to consumers can be accessed at: