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21 FEBRUARY
2006 –
The Financial Regulator has today published the
latest edition of Regulatory Connection.
read more»
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09 FEBRUARY
2006 –
The Financial Regulator has published its main
proposals on amending their current fitness and
probity regime - the basis for which is dealt
with through the use of the Individual
Questionnaire (IQ). All individuals covered
by the test will be referred to as 'Approved
Persons'.
read more»
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08 FEBRUARY
2006 –
The Financial Services Ombudsman has published
details of significant decisions he made on unresolved
complaints from customers of regulated financial
service providers in the October to December 2005
period.
A summary of decisions are below and the full
report attached.
read
more»
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20
JANUARY 2006 –
The Financial Regulator has published a consultation
on the proposed minimum competency requirements
for all individuals providing advice or selling
retail financial products to consumers
read more»
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19 JANUARY 2006 -
The Financial Services Ombudsman, Mr Joe Meade,
published details of complaints received from
April - December 2005
read more»
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17 JANUARY 2006
- The National Pension Board today launched a
report with proposals and recommendations around
Pension reform including PRSAs
read
more»
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13 DECEMBER 2005 –
The Financial Regulator proposes to extend period
of authorisation for Mortgage Intermediaries
read more»
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12 DECEMBER
2005
- THE FINANCIAL REGULATOR HAS PUBLISHED ON THEIR
WEBSITE– Consumer Protection Code Public
Response to CP10
CP10
Public response.pdf »
Impact Analysis.pdf
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21 FEBRUARY 2006
– The Financial Regulator
has today published the latest edition of Regulatory Connection.
Featured in this edition
are:
- A welcome from the new CEO,
Mr Patrick Neary
- A profile of the Consumer
Information Department
- An update on the Consultations
Papers
RegulatoryConnectionIssue06.pdf»
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09 FEBRUARY 2006 –
The Financial Regulator has published its main proposals
on amending their current fitness and probity regime - the
basis for which is dealt with through the use of the
Individual Questionnaire (IQ). All individuals
covered by the test will be referred to as 'Approved
Persons'.
Key Facts about this
Consultation Paper:
Scope
Test will apply to Board of Directors or in the case of
sole traders, the owner/manager or those who direct the
affairs of the firm. Existing Approved Persons will not
be asked to complete the new IQ.
Uniformity of Test
FR will accept clearance of a person from another EU/EEA
regulators and other regulators on a case by case basis.
Tax Compliance
Specific questions relating to the individual's personal
tax compliance will be asked.
Degree of Bureaucracy
The new IQ lists the agencies that the FR may contact when
performing a review of the individual.
Length of History
Previous 10 year career history to be supplied.
Unscheduled Departure
The Approved Person may contact the FR if they feel there
are issues within the firm that may be of interest to the
FR.
Information about
the Consultation
Consultation period commences immediately
Consultation period ends 30 April 2006
Regime implementation date June 2006
CP15
IQ 10 Feb.doc »
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08 FEBRUARY
2006
– The Financial
Services Ombudsman has published details of significant
decisions he made on unresolved complaints from customers
of regulated financial service providers in the October
to December 2005 period.
A summary of decisions are below and the full report attached.
Insurance
• A complex total permanent disability and critical
illness claim for €100,000 was initially rejected by
the insurance company but a mediated settlement of €33,000
was reached by the Ombudsman.
• Payment Protection Plan, including Disability Benefit
– Benefit reinstated as complaint upheld.
• Medical Expenses Insurance - Following a review
by the Ombudsman the cost of surgery undertaken outside
of Ireland was met, without admission of liability, at an
amount that would have been paid if it was carried out in
Ireland.
• Medical Insurance – a claim for the cost of
a hip replacement was not upheld but the particular policy
exclusion needs clarity.
• Stolen motor vehicle – Ombudsman increased
valuation offer by €1,000 to €3,700.
• Household Buildings Policy – Alleged Storm
Damage of €80,000 not upheld.
• Life Assurance – A with profits Endowment
Policy should not have been issued and accordingly the premiums
paid had to be refunded.
• Whole of life policy allegation of misleading information
- compromise settlement agreed
Credit Institutions
(including Credit Unions)
• Building Society had to repay €29,000 to a
couple who switched their commercial mortgage as a fixed
early redemption fee of six month’s interest was charged.
The Ombudsman has directed the society to change its policy
to the actual loss incurred
• Nature of derivatives investment was not explained
and €6,500 awarded
• Olympic Games – excessive hire of cars by
credit card not upheld
• Complaint of €23,000 allegedly missing from
a credit union account not upheld
• Credit Union did not inform a member of his rights
and €250 compensation awarded
• Credit card anti fraud measures are appropriate
even when they cause inconvenience
• Bank was wrong to withhold title deeds and €5,000
compensation was awarded.
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20 JANUARY 2006 –
The Financial Regulator has published a consultation on
the proposed minimum competency requirements for all individuals
providing advice or selling retail financial products to
consumers
Page 7 of the consultation states that Credit Unions are
authorised as insurance intermediaries and mortgage intermediaries
will be subject to the requirements in relation to these
activities.
We have attached two of the
key pages in the document along with the full consultation
paper for your attention.
Key Facts about this document
are:
-
Proposed date for
commencement of competency requirements - 1 Jan 2007
-
Proposed date for
Grandfathering (specific rules apply) - 1 Sept
2000
-
Proposed Period that
an unaccredited individual has to achieve a recognised
qualification - 4 years
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19 JANUARY 2006 -
The Financial Services Ombudsman, Mr Joe Meade, published
details of complaints received from April - December 2005
Extracts of insurance related statistics and attach the
full report for your attention. The Ombudsman intends to
publish details of compensation awards made and other significant
decisions next month.
| Insurance sector |
Area of business |
|
|
|
|
| |
|
Non Life (63%) |
Life (37%) |
|
|
Travel
|
323 |
29% |
Life assurance |
180 |
28% |
| Motor |
281 |
26% |
Investment policies |
136 |
21% |
| Household contents/ Buildings |
146 |
13% |
Endowment policies |
96 |
15% |
| Medical expenses |
102 |
9% |
Critical/serious illness |
50 |
8% |
| Nature of insurance complaints |
Repudiation of claim
|
484 |
28% |
Maladministration |
201 |
12% |
Customer care |
177 |
10% |
Claim handling |
158 |
9% |
Mis-selling |
119 |
7% |
Source: Report by the Financial Services Ombudsman
under Section 16 and 57 BS of the Central Bank and Financial
Services Authority of Ireland Act 2004, published Jan 19,
2006.
FSO
Report 2005.pdf »
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17 JANUARY
2006 -
The National Pension Board today launched a report with
proposals and recommendations around Pension reform including
PRSAs
PRESS RELEASE
Pensions Board Launches National
Pensions Review Report
17 January, 2006: The Report
of the National Pensions Review carried out by the Pensions
Board at the request of the Minister for Social and Family
Affairs, Séamus Brennan, TD, was launched by the
Minister at a press conference in Government Buildings today.
The proposals recommended
by the Board for immediate implementation are:
§ Introduction of matching
contributions for PRSAs.
§ Higher rate tax relief for all personal pension contributors.
§ Reduced regulation of Standard PRSAs.
§ Incentives for SSIA proceeds to be invested in pensions.
§ Retiree option to defer Social Welfare pension.
Recommendations for further
consideration include:
§ Detailed research
on women’s pension coverage rates.
§ Regular projection of Social
Welfare pension costs.
§ Automatic enrolment in a pension scheme.
§ Ongoing pensions awareness and education campaigns.
§ Review of Defined Benefit Funding Standard
§ Progress review in 2008.
The key messages arising
from the Report are:
• A significant
increase in the annual costs of Social Welfare retirement
pensions and public service pensions is predicted which
is much greater than previously expected.
• Good pension provision has a very high cost which
arises however it is financed i.e. by employers, employees,
individuals or taxpayers through the Exchequer.
•Supplementary pension coverage
is currently insufficient and is a cause for concern. Also,
there does not appear to be any improvement in the adequacy
of pension provision.
• Most Board members agree that pension coverage and
adequacy targets will not be met without some change to
the present pension system.
• Specific changes are recommended to the current
voluntary supplementary system. Many members of the Board
considered that further enhancements of the voluntary system
can, over time, achieve significant improvements in supplementary
coverage and adequacy whilst some members believe that a
mandatory approach is the only certain way of achieving
the targets and that such an approach should be considered
urgently.
Speaking at the Launch, Michael McNulty, former Chairperson
of the Pensions Board said: “Favourable demographics
give Ireland a window of opportunity to ensure adequate
retirement provision, but that window is likely to have
closed in 20 years’ time. The Board is therefore very
pleased that the Minister has frequently stated his determination
to address this issue.”
Ms. Anne Maher, Chief Executive
of the Pensions Board said: “The National Pensions
Review is not just about a set of recommendations. Detailed
analysis and costing of the pension situation are at least
as important as the recommendations and should continue
to be used as a frame of reference going forward. The Board
understands that further decisions must be made in the context
of employment interests, competitiveness and overall economic
and social considerations but the absolutely essential thing
is that decisions are made.”
Tiarnan O Mahoney, the new
Chairperson of the Pensions Board said today: “The
Report of the National Pensions Review which is being launched
today provides an excellent analysis of the current pensions
situation in Ireland. This will be a valuable frame of reference
for the new Board’s policy considerations and, we
hope, for future pensions decision making in Ireland.”
ENDS.
Notes to Editors:
1. The Pensions Board is
the statutory body set up to regulate occupational pension
schemes and Personal Retirement Savings Accounts (PRSAs)
and to advise the Minister for Social and Family Affairs,
and through him, the Government, on overall pension policy.
See www.pensionsboard.ie
2. The Pensions Act, 1990 (as amended) required the Minister
for Social and Family Affairs to cause a report in relation
to the extent of the application of occupational and other
pensions, and in respect of such matters as he considers
relevant, to be prepared and furnished to the Minister not
later than September 2006. A copy of that report is to be
laid before each House of the Oireachtas within six months
of its preparation.
3. On 3 February 2005, the Minister wrote to the Pensions
Board stating that he saw little point in delaying the report
until 2006 and, having discussed this at Government, he
asked the Board to undertake a full review of pension coverage
and associated issues without delay. The Board completed
its Review between February and October 2005 in accordance
with the timeframe agreed with the Minister. The Report
was presented to the Minister on 7 November 2005. The Minister
subsequently brought it to Government and has agreed to
formally launch it on 17 January 2006.
4. The main components of the Review included a public consultation
process, wide ranging specialist analysis and a series of
workshops with interested groups. In all, 36 submissions
were received from representative organisations and individuals
and these were reviewed and considered as part of the Review.
The workshops provided a wide range of views.
5. The Report includes a review of previously agreed pension
targets, an assessment of current coverage and adequacy
and discussion of the strategic options for meeting the
agreed targets. It contains an Overview and a Summary, Recommendations
and Next Steps as well as the full Report and underlying
Appendices.
The Report is published online
at www.pensionsboard.ie
For further information:
Anne Maher
Chief Executive
The Pensions Board Tel. (01) 613 1900
Brendan Kennedy
Actuarial Adviser
The Pensions Board Tel (01) 613 1900
Mary Hutch
Head of Information & Training The Pensions Board Tel
(01) 613 1900
Jackie Gallagher
Q4 Public Relations Tel (01) 475 1444 / 087-2371838
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13 DECEMBER 2005
– The Financial Regulator
proposes to extend period of authorisation for Mortgage Intermediaries
Re: Proposal to Extend Period of Authorisation for
Mortgage Intermediaries
The Consumer Credit Act, 1995 was amended
by Schedule 3, Part 12, Item 3 of the Central Bank and Financial
Services Authority Act 2004, which came into effect on 1 August
2004. Under Section 7A of the Consumer Credit Act, 1995 (as
amended) (‘CCA’) “the Bank may, if it so
chooses, grant an authorisation for a period longer than 12
months, subject to such conditions or requirements as the
Bank specifies. If the Bank grants an authorisation for a
period longer than 12 months, the authorisation remains in
force for that period from the date specified in the authorisation.”
Please note that the wording of the CCA does not permit the
Financial Regulator to issue evergreen authorisations (i.e.
authorisations without an expiry date).
In its Strategic Plan for 2005 the Financial
Regulator undertook to review its business processes (including
the general authorisation process). Pursuant to that undertaking
the authorisation process for mortgage intermediaries was
reviewed during the course of 2005. The main finding of that
review was that the requirement to issue authorisation renewals
on an annual basis was contributing to delays in processing
and did not add any value to the regulation of mortgage intermediaries.
Accordingly, the Financial Regulator is
proposing to extend the period of authorisation for a mortgage
intermediary:
· to 5 years in the case of a mortgage intermediary
authorised under the CCA alone; or
· to 10 years in the case of a mortgage intermediary
which is also authorised by the Financial Regulator as a multi-agency
intermediary or authorised advisor under the Investment Intermediaries
Act, 1995 (as amended) (‘IIA’).
Extending the authorisation period will
require some changes to current practices in the industry
(please see the attached Appendix).
The new regime will be introduced in 2006,
on a stepped approval basis, to facilitate the orderly introduction
of the new authorisation periods. Mortgage intermediaries
authorised solely under the CCA, will receive an authorisation
ranging from 1-5 years (during 2006/2007). Mortgage intermediaries
that are also authorised under the IIA will receive an authorisation
ranging from 6-10 years. Thereafter Mortgage Intermediaries
will generally be granted the respective 5/10 year authorisation
period. The length of the authorisation period will generally
be assigned on a random basis.
Notwithstanding the proposed new regime, the Financial Regulator
reserves the right to authorise mortgage intermediaries for
periods less than the 5/10 year periods, should that be considered
necessary.
Please be advised that the Financial Regulator
is inviting comment from the relevant interested parties in
relation to the proposal as set out in this letter and the
attached Appendix. We would welcome any such comments by 31
January 2006.
Michael Deasy
Head of Financial Institutions & Funds Authorisations
|
Current Authorisation
Procedure
(New Application) |
Proposed Authorisation
Procedure
(New Application) |
Application form must be completed,
accompanied by
valid tax clearance certificate
letter(s) of appointment for all undertakings for which
the applicant
wishes to act as an intermediary
certificate of incorporation (if applicable)
certificate of registration of business
name (if applicable).
Failure to provide any of the above documents will result
in a refusal of authorisation. |
Application form must be
completed, accompanied by
valid tax clearance certificate
original letter(s) of appointment for all undertakings
for which the applicant wishes to act as an intermediary;·
original certificate of incorporation
(if applicable)
original certificate of registration of business name
(if applicable)
T he Financial Regulator may request references and
more detailed background information if required.Failure
to provide any of the above documents will result in
a refusal of authorisation.Original documents will be
returned to the applicant on authorisation. |
| Current Authorisation Procedure
(Renewal Application) |
Proposed Authorisation Procedure
(Renewal Application) |
| Renewal notice issued 5-8 weeks
before authorisation due to expire. |
Renewal notice to issue:
for 12 month authorisations – 5-8 weeks before authorisation
due to expire
for 5 year authorisations – 4 months before authorisation
due to expire
for 10 year authorisations – 4 months before authorisation
due to expire. |
| Valid tax clearance certificate
must be supplied with application form every 12 months.
Failure to do so can cause delays and in certain cases
refusal of authorisation. |
Valid tax clearance certificate
will need to be supplied with each application form. It
will not be necessary to provide a certificate each year.
However, failure to provide a certificate will result
in refusal of authorisation |
| Letters of appointment need
only be supplied with application if there has been any
amendment. The exceptions to this are letters of appointment
with end-dates. In this case an updated letter must be
supplied with each application. |
Letters of appointment need
only be supplied with an application if there has been
any amendment. |
| Mortgage intermediaries informally
continue to refer business to certain undertakings for
up to 6 weeks after expiry of authorisation if there is
a delay in issuing renewal for any reason. |
Mortgage intermediaries must
cease referring mortgages, and any other mortgage intermediary
activity, immediately on expiry of authorisation. The
proposed Consumer Protection Code will in any case require
that regulated entities will only arrange business with
regulated entities (part 58). |
| Undertakings continue to accept
business but payment of commission is deferred on business
conducted (as above) during a period of lapsed authorisation.
On renewal, commission is then paid. |
This practice will no longer
be acceptable. Any mortgage intermediary engaging in this
practice may be investigated for unauthorised activity. |
| The authorisation is dated
from renewal date if complete.Otherwise it will be dated
from date the completed application is received. It is
not the policy of the Financial Regulator to backdate
authorisations in any circumstances. |
No Change. |
| Any changes to the status of
the intermediary, such as the issuance or withdrawal of
letters of appointment, or a change of address, must be
notified to the Financial Regulator without delay. |
No Change. |
| Revocation and/or Suspension
of authorisation. |
|
| Due to the current requirement
to renew authorisation on an annual basis the Financial
Regulator has not to date revoked or suspended any authorisations,
rather applications for renewal of authorisation were
not granted. |
With the introduction of longer
authorisation periods the Financial Regulator is more
likely to suspend or revoke authorisations pursuant to
Section 116(11) of the CCA. Section 151A(1)(a) of the
CCA requires that “the Bank shall establish and
keep a register of mortgage intermediaries”, which
must contain details of “any revocation or suspension
of a mortgage intermediaries authorisation”. |
| Cessation of activities
as a Mortgage Intermediary |
|
| Due to the current 12 month
authorisation period it appears that firms, if ceasing
to operate as mortgage intermediaries, allow their authorisation
to lapse (they do not seek renewal) |
As the new authorisation periods
are considerably longer, the Financial Regulator requires
firms that no longer wish to engage in the business of
being mortgage intermediaries, inform us of that fact
without delay. Please note that unless the Financial Regulator
is informed that a mortgage intermediary has ceased operating,
the funding levy will continue to apply. |
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