Brokers Ireland is Ireland’s representative body for insurance, financial and mortgage brokers, with a combined strength of over 1,211 firms. We believe we represent a substantial number of insurance, financial and mortgage brokers currently trading in Ireland. As the premier voice for Mortgage brokers, we advise members, and liaise with regulators, government and other industry stakeholders on key issues, in order to raise and maintain industry standards.
Brokers Ireland’s mission is to promote, support and protect our members, both collectively and individually, in the areas of education, compliance, lobbying and business development. We underpin this support by providing a forum for dialogue and debate, both within Brokers Ireland and with industry stakeholders.
Debit cards should not be exempted from the transposition of CCD2. There may be credit rating implications for consumers if they do not repay the credit by the specified date. Consumers should be protected under CCD2 when taking out any loans including those that are short term loans.
No creditors should not be exempt from the specific provisions of carrying out a creditworthiness assessment in this case. It is important the consumers in these circumstances are protected by the regulations and that where a default has occurred or is about to occur that any proposed arrangement such as deferred payment arrangements is considered suitable for the consumer.
In order to apply proportionality, loans under €200 should be exempt from the provisions outlined in Article 2(8). Interest-free loans should still be subject to the requirements as non-payment of these loans could result in impacting a consumer's credit rating.
No advertising should not be prohibited. However, there should be rules in place regarding such advertising specific to each risk, to ensure that it is not misleading.
Yes, some of the information must come from the credit Institution, therefore it should be the obligation of the credit institution to provide the information to the consumer or where a credit intermediary is appointed, to the credit intermediary. The volume of required information contained within articles 10, 11, 12 and 38, could lead to information overload for consumers. To combat information overload guidance and templates should be issued when the CCD2 is transposed that outlines what type of information should be issued to each segment of borrowers. These templates should only contain the critical information that consumers require.
No Creditors should not be allowed to require a borrower to save or have an account with that lender. No product should be made contingent on the purchase of another.
Yes. Insurance requirements such as mortgage protection and building insurance are already in place in Ireland for mortgages. These insurances protect consumers and their families if they pass away or in the case of damage to the property. These requirements should remain in place.
For smaller credit agreements such as credit cards, personal loans etc. there should not be a requirement to have insurance in place.
No only those who are employed by an entity regulated by the Central Bank under the CMCAR or the CCA should be allowed to provide advisory services to consumers in relation to credit agreements. These individuals must meet minimum qualifications and/or experience requirements under the minimum competency code.
No, there should be no restrictions on using the terms “independent advice” and “independent advisor” for credit intermediaries who are not tied to one credit institution whilst acknowledging that individual member states may have restrictions on the use of the term “independent”. Credit providers should be restricted from using the terms “independent advice” and “independent advisor”.
Yes it is important that for loans such as mortgages that the CCR is referenced. Also for personal loans that are large. There is an argument that small loans under €200 should be exempted from this requirement.
The requirements set out under the CCD2 are sufficient to regulate overdraft facilities, there is not a need for more stringent provisions.
The requirements set out under the CCD2 are sufficient to regulate Overdraft facilities, there is not a need for more stringent provisions.
While creditors should have a right to compensation for early repayment there should be a clear formula for calculating that compensation which is publicly available and outlined in the credit agreement. The cap should be determined by an analysis of the credits available in Ireland.
Brokers Ireland would be opposed to a ban on commission. We believe once the remuneration method and amount are disclosed to the consumer, it should be up to the consumer to consider and decide upon which option (fee or commission) they wish to choose to remunerate an intermediary for the advice and services provided. Currently, the remuneration amount and method are disclosed to the consumer prior to any transaction taking place through the entity’s Terms of Business which states that the entity may receive up to x % (whatever maximum is applicable) of the loan for arranging mortgage finance.
There are many provisions in the Central Bank’s Consumer Protection Code (CPC) that deal with conflicts of interest, acting in the consumer’s best interests and suitable advice. Employee remuneration is covered by Section 3.32 of the CPC which states that
“A regulated entity must ensure that its remuneration arrangements with employees in respect of providing, arranging or recommending a product or service to a consumer, are not structured in such a way as to have the potential to impair the regulated entity’s obligations:
a) to act in the best interests of consumers; and
b) to satisfy the suitability requirements set out in Chapter 5 of this Code.”
Therefore, there is no regulatory gap in Irish mortgage intermediary regulation that could be served by a commission ban.
Brokers Ireland is of the opinion that every intermediary has the right to be fairly remunerated for his or her services. An exclusively fee-based market would, for example, exclude many people from access to any level of advice or assistance in relation to one of the biggest purchases they will make throughout their lives. The prohibition on remuneration by lenders would be an obstacle to free market principles of fair remuneration for services rendered. Indeed, it would become impossible for intermediaries to require lenders to pay them for the work they do.
In many cases, the Broker does not charge a fee for advice and assistance to consumers and, therefore, the cost of advice is subsidised by the lender. If commission is banned, it will mean that the consumer will pay the same mortgage costs directly to the lender AND then the consumer will also have to pay an advice fee if they choose to obtain advice from someone other than the lender s/he is applying to. This would disincentivise choice and competition in the market and leave consumers more exposed to the marketing messages and power of major financial institutions.
A ban on commission would unnecessarily inhibit competition in the market. Competition promotes choice, keen pricing, better customer service and product innovation. It is vital that intermediaries who encourage this competition have the right to be remunerated by commission and/or fee in a way that is agreed between them and consumers.
It is important to note that intermediaries are an integral part of the credit process. It is beneficial for consumers that an intermediary assesses their financial requirements and the appropriateness of credit for their personal circumstances prior to submitting an application for credit to a Lender. Without advice from an intermediary, many consumers would not understand the various offerings available to them from all the lenders in the market.
Brokers Ireland believes that the current remuneration of intermediaries being principally commission-based with the possibility to agree fees in particular circumstances, works effectively. The current remuneration model has been and continues to be a major contributing factor in the success of ensuring that advice is available for those seeking to enter into a credit agreement to purchase a property. Changes to that model may only benefit lenders with consumers losing out with less competition overall in the mortgage market and higher charges when they seek advice from mortgage professionals, independent of the lender. Indeed, it is likely that the consumers most adversely affected are likely to be those on lower incomes.
Intermediaries must be remunerated for the work they undertake in relation to credit agreements. If an intermediary is undertaking to advise a consumer on the most suitable option for them, they should be allowed to be remunerated by that consumer regardless of whether the consumer enters into a mortgage agreement or not.
We therefore believe that payments should not be forbidden or restricted until the conclusion of a mortgage agreement.
Imposing fees on someone in default can further impact their ability to repay. Charges should be minimal to encourage getting the consumer back on track while limiting the cost to the provider. Some risk costs are already priced into interest rates so they should be capped.
The regulations must be proportionate and balanced while protecting the consumer. While these firms could possibly be exempt from certain aspects of the directive they should still be required to register and be included in supervision arrangements by a competent authority.
If the power to have product intervention powers are given to the Central Bank of Ireland, we would ask that if a product is been withdrawn, a risk assessment should be carried out prior to any action taken place, and any action should be pre-approved by a court.