General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
July 05, 2018

ECB published its opinion on the Consumer Protection (Regulation of Credit Servicing Firms (Amendment)) Bill (draft law) in Ireland. ECB offers several suggestions for improvement and welcomes the intention to exempt securitization from the scope of the draft law, as this will ensure that the draft law does not discourage securitization activity. However, ECB states that this exemption is not fully clear from the current text of the draft law. Therefore, it is suggested that the drafting be further reviewed, to ensure full legal certainty in this respect.

ECB, in June 2018, had received a request from the Chairman of the Oireachtas (the Irish National Parliament) Joint Committee on Finance, Public Expenditure, and Reform and Taoiseach (the Irish Prime Minister), for an opinion on this regulation (CON/2018/31) on the business of owning credit agreements. The draft law intends to regulate the owners of credit agreements entered into with natural persons and with micro, small, or medium-size enterprises. The law seeks to regulate credit agreement owners by extending existing provisions of Irish law to the entities, in particular the Central Bank Act 1997, which regulates the activities of retail credit firms and credit servicing firms.

Additional key highlights of the ECB opinion on the draft of the Irish law are as follows: 

  • ECB states that the draft law must carefully balance the benefits of creating well-functioning secondary markets against the impetus to protect debtors. Provisions within the draft law may create a burden of costs for investors, which could impede their participation in secondary markets, thus reducing overall participation and reducing price competition in the market place. 
  • The current text of the draft law may raise issues of legal certainty. The draft law amends a number of existing provisions of Irish law. In some cases, it is unclear how these amendments interact with the existing provisions and with the existing powers of the Central Bank of Ireland.
  • ECB notes that, on March 03, 2018, EC published its proposal for a Directive on credit servicers, credit purchasers, and the recovery of collateral. This proposal seeks to set out a common EU framework and requirements for credit servicers, for credit purchasers, and for the recovery of collateral in respect of credit agreements concluded with business borrowers. If this proposed Directive is adopted by the European Parliament and the Council, its provisions will be transposed into Irish law, requiring further amendment of the rules applicable to credit servicing and credit ownership.


Related Link: ECB Opinion (PDF)

Keywords: Europe, EU, Banking, Securities, Credit Agreements, Credit Agreement Owners, Securitization, Central Bank of Ireland, ECB

Related Insights

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473