NEW LEGISLATION being proposed by the Opposition would correct an anomaly which prohibits the Financial Services Ombudsman from publishing findings made against banks and other financial institutions.
Fianna Fáil spokesman on finance Michael McGrath TD yesterday published a Bill that would allow the ombudsman publish and report details of complaints, investigations and adjudications pertaining to the regulated financial service providers, including banks.
There has been a huge upsurge in the number of complaints received by the ombudsman’s office in recent years. The latest figures for 2010 show that more than 7,000 complaints were received. That number is expected to be surpassed in 2011, once those statistics become available.
The ombudsman has publicly stated on a number of occasions that publishing the complaints would be in the best public interest.
However, it is not possible to do so at present as the legislation setting up the office does not allow it.
Mr McGrath said yesterday his decision to draft the Bill – which will be debated during Private Members’ time in the Dáil – stemmed from two motives.
“Firstly, we have learned at enormous cost that relying on our financial institutions to provide accurate information on their performance and practices is unwise.
“We need to ensure that the public has access to accurate information about how financial service providers are treating customers and how they behave when their shortcomings are pointed out.
“Secondly, it is vital that public confidence in the Irish financial system be restored. It is my view that greater transparency about the performance and behaviour of individual institutions is a basic prerequisite to achieve this,” he said.
He said he had no doubt that the publication of complaints against specific institutions would apply pressure on them to “clean up their acts”.
Mr McGrath called on Minister for Finance Michael Noonan to take on the legislation and enact it, in the interest of transparency.