Written answers

Tuesday, 7 December 2021

Department of Finance

Legislative Measures

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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203. To ask the Minister for Finance further to Parliamentary Question No. 242 of 23 November 2021, if he will provide a timeline of the dates on which access to the registers was made; if he plans to expand on the time limitations that currently exist in respect of accessing the registers; and if he will provide clarity in respect of the person or body that is the decision maker in relation to amending the rules regarding access to the registers. [60007/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Section 151 of the Consumer Credit Act 1995 (‘the Act’) provides that the Director of Consumer Affairs (now the Competition and Consumer Protection Commission) shall establish and keep a register of credit intermediaries and section 151A of the Act provides that the Central Bank of Ireland shall establish and keep a register of moneylenders and a register of mortgage intermediaries. Each of these registers is to be kept in a form as determined by the Competition and Consumer Protection Commission and the Central Bank respectively and further requirements in relation to the respective registers, including access to the registers, is also set out in those sections. Furthermore, Regulation 31 of the EU Consumer Mortgage Credit Agreement Regulations 2016 provides that the Central Bank shall establish and maintain a register of mortgage credit intermediaries which is to be kept up to date and made publicly available on the internet.

As previously indicated, the public can consult the “Register of Mortgage Credit Intermediaries/Mortgage Intermediaries” and the “Register of Moneylenders” by viewing them on the Central Bank of Ireland’s Registers website. These are accessible at any time, 24 hours a day, seven days a week. There is no time limitation in respect of accessing these registers. Any queries in respect of the register for mortgage credit intermediaries can be sent to postauthorisations@centralbank.ie and any queries in respect of the moneylenders register can be sent to moneylending@centralbank.ie.

The Competition and Consumer Protection Commission, which falls within the remit of the Department of Enterprise, Trade and Employment, is responsible for the authorisation of credit intermediaries and the maintenance of the register of credit intermediaries, which is available on its website.

Photo of Noel GrealishNoel Grealish (Galway West, Independent)
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207. To ask the Minister for Finance when he expects to publish the full proposed wording of the central bank (individual accountability framework) Bill; if he will consider an amendment to take intermediaries from the scope of any part of the individual accountability framework; and if he will make a statement on the matter. [60302/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the Programme for Government includes a commitment to introduce a Senior Executive Accountability Regime (SEAR). The SEAR is a key element of the Individual Accountability Framework Bill and will drive positive changes in terms of culture, greater delegation of responsibilities, and enhanced accountability while simplifying the taking of sanctions against individuals who fail in their financial sector roles.

The General Scheme of the Central Bank (Individual Accountability Framework) Bill was approved by Government and published on the Department's website in July 2021. (link below)

My officials are working closely with the Office of the Parliamentary Counsel on the drafting of the Bill. It is hoped that the Bill can be published in Q1 2022.

The General Scheme is also undergoing Pre-Legislative Scrutiny by the Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach. I was before the Committee last month to discuss the elements of the Bill as part of that process. I now await a report from the Committee.

The Bill will provide greater levels of accountability, which will lead to better outcomes across the sector:

- Customers will benefit from financial service providers being fully accountable for the service and advice they provide;

- Employees of financial institutions will benefit from greater clarity as to their role and responsibilities, and will be empowered to speak up when they see failings;

- Firms and their shareholders will benefit through having senior executives personally accountable for their actions and inaction; and

- The wider economy and society will benefit from a more stable financial system by reducing the scope for reckless decisions.

I have agreed that SEAR will initially apply to banks, insurance companies, and other sectors that have a high degree of interaction with retail consumers including:

- Credit institutions (excluding credit unions);

- Insurance undertakings (excluding reinsurance undertakings, captive (re)insurance undertakings and Insurance Special Purpose Vehicles);

- Investment firms which underwrite on a firm commitment basis and/or deal on own account and/or are authorised to hold client monies/assets; and

- Third country branches of the above.

Accountability of senior staff in these sectors will lead to better outcomes for customers.

SEAR will provide a regime with the following features:

- Specific senior executives in firms will be designated as carrying out Senior Executive Functions;

- Firms will be required to provide Statements of Responsibilities to the Central Bank which will clearly set out the roles and responsibilities of each senior executive;

- Firms will also have to produce Management Responsibility Maps documenting key management and governance arrangements in a comprehensive and accessible way;

- A duty of responsibility requiring SEFs to take reasonable steps to avoid their firm committing or continuing to commit a “prescribed contravention” in relation to the areas of the business for which they are individually responsible.

The effect of these measures will be to ensure that there is absolute clarity as to who is responsible for what. This will foster a culture of personal accountability.

Restoring public trust in the financial sector is essential, not least for the sector itself. The Central Bank (Individual Accountability Framework) Bill will provide an effective framework, and will help to reassure the public that meaningful cultural change is underway.

The aim of this regime is to allocate responsibility and prevent misdemeanour, rather than being punitive. This framework is designed to improve governance and the management of risk and outcomes for consumers.

As you are aware, the detail of the Bill will be discussed as it passes through the Oireachtas. This will allow for the raising of specific issues, including the issue mentioned by the Deputy, as part of that process.

www.gov.ie/en/press-release/4f16e-minister-donohoe-secures-agreement-to-draft-central-bank-individual-accountability-framework-bill

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