Press release
Minister for Finance Michael McGrath to strengthen consumer protections with new legislation
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The Minister for Finance has today published the General Scheme of the Financial Services and Pensions Ombudsman (Amendment) Bill.
The Bill among other things intends to safeguard the consumer protections and access to the Financial Services and Pensions Ombudsman (FSPO) for customers of financial service providers who have left the Irish market.
Following a recent Supreme Court decision (Zalewski case) regarding the Workplace Relations Commission and its quasi-judicial role, the Bill when enacted will introduce legislative amendments to ensure the Financial Services and Pensions Ombudsman continues to discharge its statutory functions in line with the Constitution.
Minister McGrath said:
"I am delighted to receive government approval to publish the General Scheme of this important Bill.
"It is critical that consumer protections are afforded to all customers in a consistent manner and that those protections are safeguarded for when a provider leaves the market.
"The Bill, once enacted, will ensure that the Financial Services and Pensions Ombudsman can continue its important work of helping consumers and small businesses resolve complaints against financial service providers and pension providers. This is important given recent exits from the Irish market.
"These targeted amendments will better equip the FSPO to withstand any potential challenge to its operations and the improved legal clarity will reinforce the statutory basis of the FSPO, a key element of the consumer protection framework in Ireland.”
The General Scheme will now be referred to the Office of the Attorney General for drafting of the Bill. The text of the Bill will be finalised with the Office of the Parliamentary Counsel and it is intended to progress the legislation through the Houses of the Oireachtas in the coming months.
The General Scheme is published on the Department of Finance’s website.
Draft Heads of Bill – Amendments to FSPO Act 2017
Draft Heads of Bill – Amendments to FSPO Act 2017
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The ‘Zalewski Case’ refers to Zalewski v. Adjudication Officer and the Workplace Relations Commission (WRC), Ireland, and the Attorney General.
The Supreme Court held that the exercise of powers by Adjudication Officers pursuant to Part 4 of the Workplace Relations Act, 2015 as amended (‘the 2015 Act’) was the administration of justice under Article 34 of the Constitution. The administration of justice, in accordance with Article 34, is normally preserved for the Courts.
However, the Supreme Court found that the administration of justice as carried out by the adjudication service is permissible within the meaning of Article 37 of the Constitution as the administration of justice was limited.
The Financial Services and Pensions Ombudsman (FSPO) was established on 1 January 2018 following the merger of the Financial Services Ombudsman’s Bureau (FSOB) and the Pensions Ombudsman. The FSPO is underpinned by the Financial Services and Pensions Ombudsman Act 2017.
The FSPO is an independent, impartial, fair and free service that helps resolve complaints from consumers, including small businesses, against financial service providers and pension providers.
The FSPO is funded by levies on financial services providers for financial services complaints, and by a government grant in order to deal with pension complaints.
Further information on the FSPO is available at: https://www.fspo.ie/