Press release
Minister for Finance Michael McGrath gains Cabinet approval for legislation to strengthen consumer protections
Published on
Last updated on
Published on
Last updated on
The Minister for Finance Michael McGrath has today gained Cabinet approval for the publication of the Financial Services and Pensions Ombudsman (Amendment) Bill.
The Bill will strengthen protections for financial consumers in Ireland by introducing amendments to the legislation that underpins the Financial Services and Pensions Ombudsman (FSPO), so that it can continue to carry out its statutory functions in line with the Constitution.
The need to introduce these targeted amendments arose following a Supreme Court decision (Zalewski case) regarding the Workplace Relations Commission and its quasi-judicial role.
In addition, the Bill clarifies that customers of financial service providers who have left the Irish market will continue to be able to access the existing services and consumer protections afforded by the FSPO.
Minister McGrath welcomed Cabinet approval for the text of the Bill and said:
"The FSPO provides critical consumer protection services for consumers and small businesses through its work in resolving complaints against financial service providers and pension providers.
"This is an important Bill that, once enacted, will provide enhanced legal clarity for the statutory operation of the FSPO. It will also provide strong reassurance for customers about their ability to access the FSPO, given recent bank exits from the Irish market.
"I look forward to working with colleagues in progressing this legislation as a matter of priority through the Houses of the Oireachtas in coming months.”
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 website.