S.I. No. 142/2016 - European Union (Consumer Mortgage Credit Agreements) Regulations 2016

• (iii) natural persons performing equivalent tasks within a mortgage credit intermediary which is a legal person but does not have a board,

shall be of good repute and, in the opinion of the Central Bank, a fit and proper person to act as a mortgage credit intermediary or, as the case may be, to be a member of the foregoing board or to perform the foregoing tasks, and

• (c) each of the following—

• (i) a natural person established as a mortgage credit intermediary,

• (ii) the members of the board of a mortgage credit intermediary established as a legal person, and

• (iii) natural persons performing equivalent tasks within a mortgage credit intermediary which is a legal person but does not have a board,

shall possess the appropriate level of knowledge and competence in relation to credit agreements as stipulated by the Central Bank in accordance with the principles set out in Schedule 1.

• (4) The requirements specified in paragraph (3) shall be complied with on a continuing basis, that is to say they shall be complied with at the time of the grant of the authorisation and during its continuance in force and Regulation 34(1)(e) accordingly enables the Central Bank to revoke the authorisation if any of those requirements is not complied with.

• (5) For the purposes of paragraph (3)(a), but only in respect of a tied credit intermediary, the insurance or comparable guarantee referred to in that provision may be provided by a creditor for which the mortgage credit intermediary is empowered to act.

• (6) For the purposes of paragraph (3)(b), the persons referred to in that provision shall, as a minimum—

• (a) not have been convicted of any offence (other than a summary offence not involving force against the person, damage to property, theft or dishonesty and not relating to any financial activity); and

• (b) not have previously been declared bankrupt, unless they have been rehabilitated or discharged in accordance with law of the jurisdiction in which they were declared bankrupt,

and subparagraph (a) is without prejudice to Regulation 31(5)(b) (which confers a power on the Central Bank to refuse to grant an authorisation in the case of a conviction for an offence, whether an indictable one or not).

• (7) The matters that are stipulated by the Central Bank by way of the appropriate level of knowledge and competence, referred to in paragraph (3)(c), in relation to credit agreements for mortgage credit intermediaries’ or creditors’ staff shall be published by it.

• (8) A holder of an authorisation shall only engage in credit intermediation activities or provide advisory services in the name specified in the holder’s authorisation.

• (9) An application for an authorisation shall be in writing and in such form as the Central Bank may determine and shall contain-

• (a) the true name of the applicant,

• (b) the name under which the applicant trades,

• (c) the name of any undertaking for which the applicant acts or intends to act as a mortgage credit intermediary,

• (d) the address of any business premises of the applicant to which the application relates, and

• (e) such other information that the Central Bank may require.

• (10) An application for an authorisation must be accompanied by the fee (if any) prescribed under section 32E of the Central Bank Act 1942 (No.22 of 1942) for the purposes of this Regulation.

• (11) The Central Bank may attach such conditions to an authorisation as it thinks appropriate.

• (12) A person shall not wilfully give any information which is false or misleading in respect of an application for an authorisation; a person who contravenes this paragraph or any other provision of this Regulation commits an offence.

Supplemental provisions in relation to Regulation 30 (duration of authorisation, amendment of it, grounds for refusing its grant, etc.)

• (2) In the case of a particular applicant, or an applicant of a particular class designated by the Bank for the purposes of this paragraph, the Central Bank may, if it so chooses, grant an authorisation for a period longer than 12 months, subject to such conditions or requirements as the Bank specifies. If the Central Bank grants an authorisation for a period longer than 12 months, the authorisation remains in force for that period from the date specified in the authorisation.

• (3) The Central Bank may from time to time amend an authorisation-

• (a) by varying any of its conditions, or

• (b) by replacing or revoking an existing condition, or

• (c) by adding a new condition,

but only after giving to that holder a notice in writing of its intention to do so and an opportunity to be heard by, or to make written representations to, the Central Bank in relation to the proposed amendment.

• (4) An authorisation shall state-

• (a) the true name of the holder,

• (b) the name under which the holder is authorised to engage in the business of being a mortgage credit intermediary,

• (c) the address of the business premises of the holder, and

• (d) the name of any undertaking for which the holder acts as a mortgage credit intermediary.

• (5) The Central Bank may refuse to grant an authorisation on any of the following grounds:

• (a) the applicant does not satisfy the requirements specified in Regulation 30 or does not hold an appointment in writing from each undertaking for which the applicant is an intermediary;

• (b) the applicant, or any business with which the applicant is or has been associated, has, during the previous 5 years, been convicted of an offence that, if committed by a natural person, would be punishable by imprisonment;

• (c) the applicant is the holder of-

• (i) a bookmaker’s licence issued under the Betting Act 1931 (No.27 of 1931), or

• (ii) a licence for the sale of intoxicating liquor granted under the Licensing Acts 1833 to 1994, or

• (iii) a gaming licence issued under the Gaming and Lotteries Act 1956 (No.2 of 1956), or

• (iv) a pawnbroker’s licence granted under the Pawnbrokers Act 1964 (No.31 of 1964), or

• (v) a moneylender’s licence;

• (d) the applicant has failed to provide a tax clearance certificate (within the meaning of section 1094 of the Taxes Consolidation Act 1997 ), in respect of the applicant or the applicant’s business, that is in force.

• (6) Where in relation to an authorisation-

• (a) an application in accordance with section 1094 of the Taxes Consolidation Act 1997 (No.39 of 1997) for a tax clearance certificate has been made-

• (i) not less than 4 months prior to the commencement date of such authorisation, and

• (ii) a tax clearance certificate has not yet been issued or refused,

or

• (b) a tax clearance certificate has been refused and an appeal against such refusal has been made in accordance with subsection (7) of that section 1094,

and in either case, the authorisation could, but for the provisions relating to a tax clearance certificate, have been issued, then-

• (i) in a case where an authorisation has been granted in respect of the previous authorisation period, such authorisation may continue in force beyond its latest expiry date pending-

• (I) the issue or refusal of a tax clearance certificate, or

• (II) in the case of an appeal, the final determination of that appeal,

and

• (ii) in a case where an authorisation has not been granted in respect of the previous authorisation period, an authorisation may be issued temporarily and remain in force pending-

• (I) the issue or refusal of a tax clearance certificate, or

• (II) in the case of an appeal, the final determination of that appeal:

Provided that the amount of the fee that would be payable on the application for the authorisation is duly deposited with the Central Bank.

• (7) Every authorisation issued temporarily or continued in force in accordance with paragraph (6) shall, while it remains in force, be deemed to be an authorisation within the meaning of these Regulations.

• (8) Where—

• (a) a determination is made to issue a tax clearance certificate, in respect of an application referred to in subparagraph (a) of paragraph (6), or

• (b) the final determination of an appeal referred to in subparagraph (b) of that paragraph is to the effect that the application for a tax clearance certificate in relation to an authorisation is an acceptable application,

and where the tax clearance certificate has been issued, the authorisation continued in force or issued temporarily under that paragraph shall expire upon the grant of an authorisation under Regulation 30 and the fee deposited shall be set against the appropriate fee payable on the grant of the authorisation.

• (9) Where—

• (a) a determination is made to refuse a tax clearance certificate, in respect of an application referred to in subparagraph (a) of paragraph (6), or

• (b) the final determination of an appeal under subparagraph (b) of that paragraph is to the effect that the refusal of an application for a tax clearance certificate in relation to an authorisation is a valid refusal,

the authorisation continued in force or issued temporarily under that paragraph shall expire not later than seven days after such refusal or after the determination of such appeal, and the amount of any fee deposited in excess of the proportion of that fee attributable to the period when the authorisation was temporarily in force shall be repaid.

• (10) Mortgage credit intermediaries authorised under Regulation 30, whether established as natural or legal persons, shall be entered into a register which shall be established and maintained by the Central Bank. That register, which shall be kept up to date and made publicly available on the Internet, shall contain at least the following information—

• (a) the names of the persons within the management who are responsible for the intermediation business;

• (b) the EEA Member States in which the mortgage credit intermediary conducts business under the rules on the freedom of establishment or on the freedom to provide services and of which the mortgage credit intermediary has informed the Central Bank in accordance with Regulation 33(4);

• (c) whether the mortgage credit intermediary is tied or not, and if the mortgage credit intermediary is tied, the creditor on whose behalf the tied credit intermediary acts.

• (11) The following provisions have effect as regards the head office of a mortgage credit intermediary authorised under Regulation 30:

• (a) in case the mortgage credit intermediary is a legal person, the mortgage credit intermediary shall have its head office and registered office in the State;

• (b) in case the mortgage credit intermediary is not a legal person or the mortgage credit intermediary is a legal person but has no registered office, the mortgage credit intermediary shall have its head office in the State.

• (12) The Central Bank shall establish a single information point to allow quick and easy public access to information from the register of mortgage credit intermediaries referred to in paragraph (10), which shall be compiled electronically and kept constantly updated. This single information point shall also provide the identification details of the competent authorities of each EEA Member State.

• (13) Neither Regulation 30 nor this Regulation shall apply to a regulated financial service provider (within the meaning of the Central Bank Act 1942 ) authorised by—

• (a) the Central Bank, or

• (b) an authority that performs functions in an EEA Member State that are comparable to the functions performed by the Central Bank,

to enter into a credit agreement in the State.

• (14) For the purposes of these Regulations, a regulated financial service provider, within the meaning aforesaid, authorised (whether before or after the commencement of these Regulations) by the Central Bank or an authority referred to in paragraph (13)(b) to enter into credit agreements in the State, is taken to be authorised to carry on the business of a mortgage credit intermediary.

Credit intermediaries tied to only one creditor

• (2) The authorisation by the Central Bank of such a tied credit intermediary shall be effected by means of—

• (a) an application under Regulation 30, by the creditor on whose behalf the tied credit intermediary is exclusively acting, for the grant of an authorisation under that Regulation to the creditor in respect of that intermediary, and

• (b) subject to the requirements under, or referred to in, that Regulation and Regulation 31 being complied with, the grant by the Bank of such an authorisation,

and, notwithstanding that that application is made by the creditor, references in Regulations 30 and 31, express or implied, to the applicant shall be construed as references to the tied credit intermediary.

• (3) If such an authorisation is granted, the creditor shall remain fully and unconditionally responsible for any action or omission on the part of the tied credit intermediary that is acting on behalf of the creditor in any area to which these Regulations apply and the creditor shall ensure that the tied credit intermediary complies with, at least, the professional requirements specified in Regulation 30 (3) and (6).

• (4) Without prejudice to Regulation 35, a creditor shall monitor the activities of a tied credit intermediary specified in paragraph (1) in order to ensure that the intermediary continues to comply with these Regulations. In particular, the creditor shall be responsible for monitoring compliance with the knowledge and competence requirements of the tied credit intermediary and its staff.

Freedom of establishment and freedom to provide services by mortgage credit intermediaries

• (2) However, mortgage credit intermediaries shall not be allowed to provide their services in relation to credit agreements offered by non-credit institutions to consumers in an EEA Member State where such non-credit institutions are not allowed to operate.

• (3) An appointed representative appointed in another EEA Member State shall not be allowed to carry out credit intermediation activities or to provide advisory services.

• (4) Any mortgage credit intermediary authorised by the Central Bank under Regulation 30 intending to carry out business for the first time in one or more EEA Member States under the freedom to provide services, or when establishing a branch, shall inform the Central Bank.

• (5) Within a period of one month after being so informed, the Central Bank shall notify the competent authorities of the host EEA Member States concerned of the intention of the mortgage credit intermediary and shall at the same time inform the mortgage credit intermediary concerned of that notification. It shall also notify the competent authorities of the host EEA Member States concerned of the creditors to which the mortgage credit intermediary is tied, and whether the creditors take full and unconditional responsibility for the mortgage credit intermediary’s activities

• (6) The mortgage credit intermediary may start business one month after the date on which he or she has been informed by the Central Bank of the notification referred to in paragraph (5).

• (7) Where the Central Bank receives a notification of the type referred to in paragraph (5) from another EEA Member State, it shall enter the necessary information into its register of mortgage credit intermediaries as provided for under Regulation 31(10).

• (8) Before the branch of a mortgage credit intermediary commences its activities, or within two months after the date of receiving the notification referred to in paragraph (5), the Central Bank shall prepare for the supervision of the mortgage credit intermediary in accordance with Regulation 35 and, if necessary, indicate to the mortgage credit intermediary the conditions under which, in areas not harmonised in European Union law, those activities are to be carried out in the State.

Revocation of authorisation and provisions concerning appeals against such revocations or refusals to grant authorisations or decisions to amend them

• (a) expressly renounces the authorisation or has carried out neither credit intermediation activities referred to in the definition of “mortgage credit intermediary” in Regulation 4 nor provided advisory services for the preceding 6 months;

• (b) has obtained the authorisation through false or misleading statements or any other irregular means;

• (c) no longer fulfils the requirements under which authorisation was granted;

• (d) has seriously or on a systematic basis contravened the provisions of these Regulations that govern the operating conditions for mortgage credit intermediaries;

• (e) no longer satisfies a condition specified in these Regulations for authorisation as a mortgage credit intermediary.

• (2) Whenever the Central Bank proposes to refuse to grant, or proposes to suspend the operation of, or revoke, an authorisation it shall notify the applicant or the holder of the authorisation, as the case may be, of its proposal and shall, if any representations are made to it in writing by such applicant or holder within 14 days after the notification, consider the representations.

• (3) If, having considered any representations that may have been made under paragraph (2), the Central Bank decides to refuse to grant an authorisation, it shall, by notice in writing, inform the applicant of the decision. The notice shall specify the grounds for the decision.

• (4) If, having considered any representations that may have been made under paragraph (2), the Central Bank decides to suspend the operation of, or revoke, an authorisation, or to vary any term or condition of an authorisation, it shall notify the decision to the holder of the authorisation, together with the grounds for the decision.

• (5) The Central Bank shall deliver a notice referred to in paragraph (3) or (4) personally or send it by prepaid registered post to the business address of the applicant for an authorisation or the holder of the authorisation concerned, as the case requires.

• (6) The following decisions are appealable decisions for the purposes of Part VIIA of the Central Bank Act 1942 :

• (a) a decision to refuse to grant an authorisation;

• (b) a decision suspending the operation of, or revoking, an authorisation;

• (c) a decision varying any term or condition of an authorisation.

• (7) If a notice under this Regulation relates to a decision of the Central Bank—

• (a) suspending the operation of, or revoking, an authorisation, or

• (b) varying the terms or conditions of an authorisation,

the decision takes effect at the end of the period allowed for appealing against the decision under Part VIIA of the Central Bank Act 1942 unless an appeal against the decision is lodged under that Part within that period.

• (8) If an appeal is lodged under Part VIIA of the Central Bank Act 1942 by a holder of an authorisation against a decision of the Central Bank—

• (a) suspending the operation of, or revoking, an authorisation, or

• (b) varying the terms or conditions of an authorisation,

the decision does not take effect unless it is confirmed by the Irish Financial Services Appeals Tribunal or the appeal is withdrawn.

• (9) In respect of the authorisation by the Central Bank of a tied credit intermediary as specified in paragraph (a) of the definition of that expression in Regulation 3(1), that authorisation may be revoked upon application by the creditor on whose behalf the tied credit intermediary is exclusively acting.

• (10) Where the authorisation of a mortgage credit intermediary has been revoked by the Central Bank, the Central Bank shall notify the competent authorities of host EEA Member States of such revocation as soon as possible and at the latest within 14 working days after the date of the revocation becoming effective and the Central Bank shall remove the person from the register.

• (11) The entry in the register of a mortgage credit intermediary whose authorisation has been revoked or who no longer carries out business in the State under the freedom to provide services or freedom of establishment as mentioned in Regulation 33, shall be deleted therefrom, without undue delay, by the Central Bank.

Supervision of mortgage credit intermediaries

• (2) The Central Bank shall ensure that tied credit intermediaries are subject to supervision directly, or as part of the supervision of the creditor on behalf of which they act if the creditor is a regulated financial service provider referred to in Regulation 31(13)(a) or (b). However, if the tied credit intermediary provides services in an EEA Member State other than the State, then the tied credit intermediary shall be subject to supervision directly.

• (3) The Central Bank shall be responsible for ensuring, in a case where a mortgage credit intermediary is admitted in another EEA Member State, being the home EEA Member State, but which has a branch in the State, being the host EEA Member State, that the services provided by the mortgage credit intermediary within the State comply with Regulations 8 (1) and (2), 9, 10, 11, 12, 14, 15, 16, 17, 18, 21, 23 and 40.

• (4) Where the Central Bank ascertains, in case where a mortgage credit intermediary is admitted in another EEA Member State, being the home EEA Member State, but which has a branch in the State, being the host EEA Member State, that the services provided by the mortgage credit intermediary within the State have not been in compliance with any of Regulations 8 (1) and (2), 9, 10, 11, 12, 14, 15, 16, 17, 18, 21, 23 and 40, the Central Bank shall require the mortgage credit intermediary concerned to take the necessary steps so as to ensure that that non-compliance ceases.

• (5) If the mortgage credit intermediary concerned fails to take the necessary steps referred to in paragraph (4), the Central Bank shall take all appropriate action to ensure that the non-compliance by the mortgage credit intermediary ceases. The nature of that action shall be communicated to the competent authorities of the home EEA Member State.

• (6) If, despite the action taken by the Central Bank, the mortgage credit intermediary persists in his or her failure to comply with any of the provisions referred to in paragraph (4), the Central Bank may, after informing the competent authorities of the home EEA Member State, take appropriate action to prevent further instances of such non-compliance by the mortgage credit intermediary and, in so far as necessary, to prevent the mortgage credit intermediary from initiating any further transactions within the State. The Central Bank shall inform the European Commission of any such action without undue delay.

• (7) Where the competent authority of another EEA Member State takes an action of the type referred to in paragraph (6) in respect of a mortgage credit intermediary registered in the State, and if the Central Bank disagrees with such an action, the Central Bank may refer the matter to the European Banking Authority and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010.

• (8) The Central Bank shall have, in respect of a branch located in the State, the right to examine branch arrangements and to request such changes as are necessary to fulfil its responsibilities under paragraphs (3) to (7) and to enable the competent authorities of the home EEA Member State to enforce the obligations under Regulation 8(3), (4) and (5) with respect to the services provided by the branch.

• (9) Where the Central Bank has clear and demonstrable grounds for concluding that a mortgage credit intermediary acting within the State under the freedom to provide services has failed to comply with the relevant provisions of these Regulations or that a mortgage credit intermediary that has a branch within the State has failed to comply with the relevant provisions of these Regulations, other than those specified in paragraphs (3) to (7), it shall refer those findings to the competent authority of the home EEA Member State.

• (10) Where the competent authority of the home EEA Member State fails to take any action within one month from receiving the findings referred to in paragraph (9) or where, despite the action taken by that competent authority, a mortgage credit intermediary persists in acting in a manner that is clearly prejudicial to the interests of the consumers in the State or the orderly functioning of the markets, the Central Bank:

• (a) shall, after having informed the competent authority of the home EEA Member State, take all appropriate action needed to protect consumers and ensure the proper functioning of the markets, including by preventing the mortgage credit intermediary referred to in this paragraph from initiating any further transactions within the State and shall inform the European Commission and the European Banking Authority of such action without undue delay;

• (b) may refer the matter to the European Banking Authority and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010.

• (11) If the Central Bank, as the home EEA Member State in relation to a mortgage credit intermediary, receives a finding of the type referred to Article 34(4) of the Directive from a host EEA Member State in respect of the mortgage credit intermediary’s activities, the Central Bank shall take the appropriate action.

• (12) Where a mortgage credit intermediary admitted in another EEA Member State has established a branch within the State, the competent authorities of the home EEA Member State, in the exercise of their responsibilities and after having informed the Central Bank, may, and there is (by virtue of this paragraph) conferred on such authorities power to, carry out on-site inspections in that branch.

• (13) For the avoidance of doubt, the allocation of tasks specified in this Regulation between the competent authorities of EEA Member States shall be without prejudice to the Member States’ competences in relation to fields not covered by the Directive in conformity with their obligations under European Union law.

PART 12 ADMISSION AND SUPERVISION OF NON-CREDIT INSTITUTIONS

Admission and supervision of non-credit institutions

• (2) In the case retail credit firms (within the meaning of Part V of the Central Bank Act 1997 (No.8 of 1997)), compliance with the enactments for the time being in force that relate to, retail credit firms shall constitute sufficient compliance with paragraph (1).

PART 13 COOPERATION BETWEEN COMPETENT AUTHORITIES OF DIFFERENT MEMBER STATES

Obligation to cooperate

• (2) The Central Bank shall render assistance to competent authorities of the other EEA Member States. In particular, it shall exchange information and cooperate in any investigation or supervisory activities.

• (3) In order to facilitate and accelerate cooperation, and more particularly the exchange of information, the Central Bank shall be the single designated contact in the State for the purposes of the Directive.

• (4) The Central Bank shall communicate to any other body that it considers relevant that it is the designated competent authority for the State for the purpose of receiving requests for exchange of information or cooperation pursuant to Article 36 of the Directive.

• (5) The Central Bank shall without undue delay supply the designated single competent authorities in other EEA Member States with the information that may be required for the purposes of carrying out the duties of the competent authorities pursuant to the Directive.

• (6) The Central Bank, when exchanging information with other competent authorities of other EEA Member States pursuant to the Directive, may indicate at the time of communication that such information must not be disclosed without its express agreement, in which case such information may be exchanged solely for the purposes for which the Central Bank gave its agreement.

• (7) The Central Bank may receive information of the type referred to in paragraph (2) from the single designated competent authority of other EEA Member States and may do so subject to limitations of the type referred to in paragraph (6) and, where such a limitation is put on the information, it shall respect that limitation.

• (8) The Central Bank may transmit the information received to the other competent authorities; however it shall not transmit the information to other bodies or natural or legal persons without the express agreement of the competent authorities which disclosed it and solely for the purposes for which those authorities gave their agreement, except in circumstances that, on objective grounds, the Central Bank considers that it is justified in doing so in which case it shall immediately inform the contact point that supplied the information.

• (9) The Central Bank may refuse to act on a request for cooperation in carrying out an investigation or supervisory activity or to exchange information as provided for in this Regulation only where:

• (a) such an investigation, on-the-spot verification, supervisory activity or exchange of information might adversely affect the sovereignty or security of the State or acceding to the request would be manifestly inconsistent with public policy;

• (b) judicial proceedings have already been initiated in respect of the same actions and the same persons before a court in the State;

• (c) final judgement has already been delivered in the State in respect of the same persons and the same actions.

• (10) In the event of such a refusal, the Central Bank shall notify the requesting competent authority accordingly, providing as detailed information as possible.

Settlement of disagreements between competent authorities of different Member States

• (2) Any binding decision made in such cases by the European Banking Authority in accordance with Article 19 of Regulation (EU) No 1093/2010 shall be binding on the Central Bank.

PART 14 MISCELLANEOUS

Penalties and sanctions

• (a) on summary conviction, to a Class A fine or imprisonment for a term not exceeding 12 months or both, or

• (b) on conviction on indictment, to a fine not exceeding €100,000 or imprisonment for a term not exceeding 3 years or both.

• (2) Where a person is convicted of an offence under these Regulations and there is a continuation of the offence by the person after his or her conviction, the person commits a further offence on every day on which the contravention continues and for each such offence is liable—

• (a) on summary conviction, to a Class D fine, or

• (b) on conviction on indictment, to a fine not exceeding €10,000.

• (3) Where an offence referred to in paragraph (1) or (2) is proved to have been committed by a body corporate with the consent, connivance or approval of, or to be attributable to the wilful neglect on the part of, any person, being a director, manager, secretary or other officer of the body corporate, or a person who was purporting to act in any such capacity, that person as well as the body corporate commits an offence and is liable to be proceeded against and punished as if he or she were guilty of the first-mentioned offence.

• (4) Summary proceedings in relation to an offence under these Regulations may be prosecuted by the Central Bank.

• (5) Part 2 of Schedule 2 (as amended by Regulation 185 of the European Union (Bank Recovery and Resolution) Regulations 2015 ( S.I. No.289 of 2015 )) to the Central Bank Act 1942 is amended by inserting after the last item the following:

“64S.I. No. 142 European Union (Consumer Mortgage Credit Agreements) Regulations 2016 The whole instrument.”.

• (6) The Central Bank may publically disclose any administrative sanction that it imposes under the Central Bank Act 1942 for any contravention of the provisions of these Regulations, unless it considers that such a disclosure would seriously jeopardise the financial markets or cause disproportionate damage to the parties involved.

Dispute resolution mechanisms

• (2) As necessary, the Financial Services Ombudsman shall cooperate with the designated body or bodies in another EEA Member State which has responsibility for out-of-court settlement of consumer disputes within the scope of the Directive.

Anti-avoidance

• (2) Without limiting the generality of paragraph (1), if it appears that an agreement has been cast in a form for the purpose of avoiding the application of these Regulations to it, a court or other authority having jurisdiction in the matter shall have regard to the commercial reality of the transaction for the purpose of determining whether or not these Regulations apply to the agreement.

Transitional provisions

• (2) As respects—

• (a) a mortgage intermediaries authorisation granted under section 116 of the Consumer Credit Act 1995 and in force immediately before 21 March 2016, and

• (b) the holder of such an authorisation that is so in force,

the following apply—

• (i) the authorisation shall, notwithstanding Regulation 30, continue in force for the reminder of the period for which, under that section 116, it is provided it shall be in force, but this is subject to paragraph (3);

• (ii) the holder of the authorisation shall be deemed to be a holder of a mortgage credit intermediary’s authorisation and the provisions of these Regulations shall accordingly apply to the holder, but this is subject to paragraphs (3) to (6).

• (3) The application of the provisions of these Regulations to a holder referred to in paragraph (2)(b) includes the application to the holder of the provisions of Regulation 34 but the grounds on which the powers under that Regulation may be exercised in relation to such a holder do not include a ground the invocation of which would be inconsistent with paragraph (4) or (6).

• (4) Notwithstanding anything in paragraph (2), a holder referred to in paragraph (2)(b) is not required to comply with paragraphs (3) to (7) of Regulation 30 until 21 March 2017.

• (5) Notwithstanding anything in paragraph (2), a holder referred to in paragraph (2)(b) shall not act as a mortgage credit intermediary outside the State at any time before 21 March 2017, unless the holder satisfies the necessary legal requirements of the host EEA Member State.

• (6) Notwithstanding anything in Regulation 2 or paragraph (2), the requirement to have done all the necessary things so as to be in compliance with Regulation 10 shall not take effect, in the case of a creditor or mortgage credit intermediary who has been performing activities to which these Regulations relate before 20 March 2014, until 21 March 2017.

• (7) As respects a tied mortgage branch agent within the meaning of the Consumer Credit Act 1995 (Section 120) Regulations 1996 ( S.I. No. 247 of 1996 ) who is acting as such before 21 March 2016, the following apply—

• (a) such a tied mortgage branch agent shall be deemed to be a holder of a mortgage credit intermediary’s authorisation, and

• (b) the provisions of these Regulations shall accordingly apply to such an agent,

but, with any necessary modification of those paragraphs’ terms for the purpose of qualifying subparagraph (b) as next provided, subparagraph (b) of this paragraph is subject to paragraphs (3) to (6).

PART 15 AMENDMENTS OF OTHER ENACTMENTS

Amendment of European Communities (Consumer Credit Agreements) Regulations 2010

• (a) in paragraph (6)(c), by inserting “subject to paragraph (10),” before “to a credit agreement”, and

• (b) by inserting after paragraph (9) the following:

• “(10) Paragraph (6)(c) shall not apply to unsecured credit agreements the purpose of which is the renovation of a residential immovable property involving a total amount of credit more than €75,000.”.

Amendment of Consumer Credit Act 1995

• (a) in section 116, by substituting, in subsection (1), “Subject to section 116A (inserted by the European Union (Consumer Mortgage Credit Agreements) Regulations 2016) a person shall not engage” for “A person shall not engage”, and

• (b) by inserting, after section 116, the following:

“Non-application of section 116 and deemed application of certain provisions

116A.(1) Section 116 shall not apply to a person required to hold a mortgage credit intermediary’s authorisation under Regulation 30 of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (in subsection (2) referred to as a ‘relevant authorisation’).

• (2) Notwithstanding subsection (1), a person who is the holder for the time being of a relevant authorisation shall, for the purposes, and the purposes only, of sections 117 to 119, be deemed to be the holder of a mortgage intermediaries authorisation.”.

• (2) The Consumer Credit Act 1995 is further amended by inserting the following after subsection (2) of section 129:

• “(3) This section shall not apply to a credit agreement to which the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 apply.”.

Amendment of Central Bank Act 1942

• (a) in paragraph (v), by substituting “29 April 2015;” for “29 April 2015, and”, and

• (b) by inserting the following after paragraph (v):

• “(va) Commission Delegated Regulation No 1125/2014 of 19 September 2014 supplementing Directive 2014/17/EU of the European Parliament and of the Council with regard to regulatory technical standards on the minimum monetary amount of the professional indemnity insurance or comparable guarantee to be held by credit intermediaries¹ , and”.

SCHEDULE 1 MINIMUM KNOWLEDGE AND COMPETENCE REQUIREMENTS

• (a) appropriate knowledge of credit products falling within Regulation 5 and the ancillary services typically offered with them;

• (b) appropriate knowledge of the laws related to the credit agreements for consumers, in particular consumer protection;

• (c) appropriate knowledge and understanding of the immovable property purchasing process;

• (d) appropriate knowledge of security valuation;

• (e) appropriate knowledge of organisation and functioning of land registers;

• (f) appropriate knowledge of the market in the State;

• (g) appropriate knowledge of business ethics standards;

• (h) appropriate knowledge of the consumer’s creditworthiness assessment process or where applicable, competence in assessing consumers’ creditworthiness;

• (i) appropriate level of financial and economic competency.

• (a) professional qualifications, e.g. diplomas, degrees, training, competency tests; or

• (b) professional experience, which may be defined as a minimum number of years working in areas related to the origination, distribution or intermediation of credit products.

After 21 March 2019, the determination of the appropriate level of knowledge and competence shall not be based solely on the methods listed in subparagraph (b).

SCHEDULE 2 EUROPEAN STANDARDISED INFORMATION SHEET (ESIS)

PART A

The text in this model shall be reproduced as such in the ESIS. Indications between square brackets shall be replaced with the corresponding information. Instructions for the creditor or, where applicable, credit intermediary on how to complete the ESIS are provided in Part B.

Wherever the words ‘where applicable’ are indicated, the creditor shall provide the information required if it is relevant to the credit agreement. Where the information is not relevant, the creditor shall delete the information in question or the entire section (for example, in cases where the section is not applicable). Where the entire section is deleted, the numbering of the ESIS sections shall be adjusted accordingly.

The information below shall be provided in a single document. The font used shall be clearly readable. Bold font, shading or larger font sizes shall be used for the information elements to be highlighted. All applicable risk warnings shall be highlighted.

ESIS Model

(Introductory text)	(Introductory text)
This document was produced for [name of consumer] on [current date]. This document was produced on the basis of the information that you have provided so far and on the current financial market conditions. The information below remains valid until [validity date], (where applicable) apart from the interest rate and other costs. After that date, it may change in line with market conditions. (Where applicable) This document does not constitute an obligation for [name of creditor] to grant you a loan.	This document was produced for [name of consumer] on [current date]. This document was produced on the basis of the information that you have provided so far and on the current financial market conditions. The information below remains valid until [validity date], (where applicable) apart from the interest rate and other costs. After that date, it may change in line with market conditions. (Where applicable) This document does not constitute an obligation for [name of creditor] to grant you a loan.
1. Lender	1. Lender
[Name] [Telephone number] [Geographical address] (Optional) [E-mail address] (Optional) [Fax number] (Optional) [Web address] (Optional) [Contact person/point] (Where applicable information as to whether advisory services are being provided:) [(We recommend, having assessed your needs and circumstances, that you take out this mortgage./We are not recommending a particular mortgage for you. However, based on your answers to some questions, we are giving you information about this mortgage so that you can make your own choice.)]	[Name] [Telephone number] [Geographical address] (Optional) [E-mail address] (Optional) [Fax number] (Optional) [Web address] (Optional) [Contact person/point] (Where applicable information as to whether advisory services are being provided:) [(We recommend, having assessed your needs and circumstances, that you take out this mortgage./We are not recommending a particular mortgage for you. However, based on your answers to some questions, we are giving you information about this mortgage so that you can make your own choice.)]
2. (Where applicable) Credit intermediary	2. (Where applicable) Credit intermediary
[Name] [Telephone number] Geographical address [E-mail address] (Optional) [Fax number] (Optional) [Web address] (Optional) Contact person/point [(We recommend, having assessed your needs and circumstances, that you take out this mortgage./We are not recommending a particular mortgage for you. However, based on your answers to some questions, we are giving you information about this mortgage so that you can make your own choice.)][Remuneration]	[Name] [Telephone number] Geographical address [E-mail address] (Optional) [Fax number] (Optional) [Web address] (Optional) Contact person/point [(We recommend, having assessed your needs and circumstances, that you take out this mortgage./We are not recommending a particular mortgage for you. However, based on your answers to some questions, we are giving you information about this mortgage so that you can make your own choice.)][Remuneration]
3. Main features of the loan	3. Main features of the loan
Amount and currency of the loan to be granted: [value]currency This loan is not in [national currency of the borrower]. (Where applicable) The value of your loan in [national currency of the borrower] could change. (Where applicable) For example, if the value of [national currency of the borrower] fell by 20 % relative to [credit currency], the value of your loan would increase to [insert amount in national currency of the borrower]. However, it could be more than this if the value of [national currency of the borrower] falls by more than 20 %. (Where applicable) The maximum value of your loan will be [insert amount in national currency of the borrower]. (Where applicable) You will receive a warning if the credit amount reaches [insert amount in national currency of the borrower]. (Where applicable) You will have the opportunity to [insert right to renegotiate foreign currency loan or right to convert loan into [relevant currency] and conditions]. Duration of the loan: [duration] [Type of loan] [Type of applicable interest rate] Total amount to be reimbursed: This means that you will pay back [amount] for every [unit of the currency] borrowed. (Where applicable) [This/Part of this] is an interest-only loan. You will still owe [insert amount of loan on an interest- only basis] at the end of the mortgage term.(Where applicable) Value of the property assumed to prepare this information sheet: [insert amount] (Where applicable) Maximum available loan amount relative to the value of the property [insert ratio] or Minimum value of the property required to borrow the illustrated amount insert amount [Security]	Amount and currency of the loan to be granted: [value]currency This loan is not in [national currency of the borrower]. (Where applicable) The value of your loan in [national currency of the borrower] could change. (Where applicable) For example, if the value of [national currency of the borrower] fell by 20 % relative to [credit currency], the value of your loan would increase to [insert amount in national currency of the borrower]. However, it could be more than this if the value of [national currency of the borrower] falls by more than 20 %. (Where applicable) The maximum value of your loan will be [insert amount in national currency of the borrower]. (Where applicable) You will receive a warning if the credit amount reaches [insert amount in national currency of the borrower]. (Where applicable) You will have the opportunity to [insert right to renegotiate foreign currency loan or right to convert loan into [relevant currency] and conditions]. Duration of the loan: [duration] [Type of loan] [Type of applicable interest rate] Total amount to be reimbursed: This means that you will pay back [amount] for every [unit of the currency] borrowed. (Where applicable) [This/Part of this] is an interest-only loan. You will still owe [insert amount of loan on an interest- only basis] at the end of the mortgage term.(Where applicable) Value of the property assumed to prepare this information sheet: [insert amount] (Where applicable) Maximum available loan amount relative to the value of the property [insert ratio] or Minimum value of the property required to borrow the illustrated amount insert amount [Security]
4. Interest rate and other costs	4. Interest rate and other costs
The annual percentage rate of charge (APRC) is the total cost of the loan expressed as an annual percentage. The APRC is provided to help you to compare different offers.The APRC applicable to your loan is [APRC].It comprises: Interest rate [value in percentage or, where applicable, indication of a reference rate and percentage value of creditor’s spread][Other components of the APRC] Costs to be paid on a one-off basis (Where applicable) You will need to pay a fee to register the mortgage. [Insert amount of fee where known or basis for calculation.] Costs to be paid regularly (Where applicable) This APRC is calculated using assumptions regarding the interest rate.(Where applicable) Because [part of] your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate rose to [scenario as described in Part B], the APRC could increase to [insert illustrative APRC corresponding to the scenario]. (Where applicable) Please note that this APRC is calculated on the basis that the interest rate remains at the level fixed for the initial period throughout the duration of the contract.(Where applicable) The following costs are not known to the lender and are therefore not included in the APRC: [Costs] (Where applicable) You will need to pay a fee to register the mortgage. Please make sure that you are aware of all other taxes and costs associated with your loan.	The annual percentage rate of charge (APRC) is the total cost of the loan expressed as an annual percentage. The APRC is provided to help you to compare different offers.The APRC applicable to your loan is [APRC].It comprises: Interest rate [value in percentage or, where applicable, indication of a reference rate and percentage value of creditor’s spread][Other components of the APRC] Costs to be paid on a one-off basis (Where applicable) You will need to pay a fee to register the mortgage. [Insert amount of fee where known or basis for calculation.] Costs to be paid regularly (Where applicable) This APRC is calculated using assumptions regarding the interest rate.(Where applicable) Because [part of] your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate rose to [scenario as described in Part B], the APRC could increase to [insert illustrative APRC corresponding to the scenario]. (Where applicable) Please note that this APRC is calculated on the basis that the interest rate remains at the level fixed for the initial period throughout the duration of the contract.(Where applicable) The following costs are not known to the lender and are therefore not included in the APRC: [Costs] (Where applicable) You will need to pay a fee to register the mortgage. Please make sure that you are aware of all other taxes and costs associated with your loan.
5. Frequency and number of payments	5. Frequency and number of payments
Repayment frequency: [frequency] Number of payments: [number]	Repayment frequency: [frequency] Number of payments: [number]
6. Amount of each instalment	6. Amount of each instalment
[Amount] [currency] Your income may change. Please consider whether you will still be able to afford your [frequency] repayment instalments if your income falls.(Where applicable) Because [this/part of this] is an interest-only loan you will need to make separate arrangements to repay the [insert amount of loan on an interest-only basis] you will owe at the end of the mortgage term. Remember to add any extra payments you will need to make to the instalment amount shown here.(Where applicable) The interest rate on [part of] this loan can change. This means the amount of your instalments could increase or decrease. For example, if the interest rate rose to [scenario as described in Part B] your payments could increase to [insert instalment amount corresponding to the scenario].(Where applicable) The value of the amount you have to pay in [national currency of the borrower] each [frequency of instalment] could change. (Where applicable) Your payments could increase to [insert maximum amount in national currency of the borrower] each [insert period]. (Where applicable) For example, if the value of [national currency of the borrower] fell by 20 % relative to [credit currency] you would have to pay an extra [insert amount in national currency of the borrower] each [insert period]. Your payments could increase by more than this.(Where applicable) The exchange rate used for converting your repayment in [credit currency] to [national currency of the borrower] will be the rate published by [name of institution publishing exchange rate] on [date] or will be calculated on [date] using [insert name of benchmark or method of calculation].(Where applicable) [Details on tied savings products, deferred-interest loans]	[Amount] [currency] Your income may change. Please consider whether you will still be able to afford your [frequency] repayment instalments if your income falls.(Where applicable) Because [this/part of this] is an interest-only loan you will need to make separate arrangements to repay the [insert amount of loan on an interest-only basis] you will owe at the end of the mortgage term. Remember to add any extra payments you will need to make to the instalment amount shown here.(Where applicable) The interest rate on [part of] this loan can change. This means the amount of your instalments could increase or decrease. For example, if the interest rate rose to [scenario as described in Part B] your payments could increase to [insert instalment amount corresponding to the scenario].(Where applicable) The value of the amount you have to pay in [national currency of the borrower] each [frequency of instalment] could change. (Where applicable) Your payments could increase to [insert maximum amount in national currency of the borrower] each [insert period]. (Where applicable) For example, if the value of [national currency of the borrower] fell by 20 % relative to [credit currency] you would have to pay an extra [insert amount in national currency of the borrower] each [insert period]. Your payments could increase by more than this.(Where applicable) The exchange rate used for converting your repayment in [credit currency] to [national currency of the borrower] will be the rate published by [name of institution publishing exchange rate] on [date] or will be calculated on [date] using [insert name of benchmark or method of calculation].(Where applicable) [Details on tied savings products, deferred-interest loans]
7. (Where applicable) Illustrative repayment table	7. (Where applicable) Illustrative repayment table
This table shows the amount to be paid every [frequency]. The instalments (column [relevant no.]) are the sum of interest to be paid (column [relevant no.]), where applicable, capital paid (column [relevant no.]) and, where applicable, other costs (column [relevant no.]). (Where applicable) The costs in the other costs column relate to [list of costs]. Outstanding capital (column [relevant no.]) is the amount of the loan that remains to be reimbursed after each instalment. [Table]	This table shows the amount to be paid every [frequency]. The instalments (column [relevant no.]) are the sum of interest to be paid (column [relevant no.]), where applicable, capital paid (column [relevant no.]) and, where applicable, other costs (column [relevant no.]). (Where applicable) The costs in the other costs column relate to [list of costs]. Outstanding capital (column [relevant no.]) is the amount of the loan that remains to be reimbursed after each instalment. [Table]
8. Additional obligations	8. Additional obligations
The borrower must comply with the following obligations in order to benefit from the lending conditions described in this document. [Obligations] (Where applicable) Please note that the lending conditions described in this document (including the interest rate) may change if these obligations are not complied with. (Where applicable) Please note the possible consequences of terminating at a later stage any of the ancillary services relating to the loan: [Consequences]	The borrower must comply with the following obligations in order to benefit from the lending conditions described in this document. [Obligations] (Where applicable) Please note that the lending conditions described in this document (including the interest rate) may change if these obligations are not complied with. (Where applicable) Please note the possible consequences of terminating at a later stage any of the ancillary services relating to the loan: [Consequences]
9. Early repayment	9. Early repayment
You have the possibility to repay this loan early, either fully or partially. (Where applicable) [Conditions] (Where applicable) Exit charge: [insert amount or, where not possible, the method of calculation] (Where applicable) Should you decide to repay this loan early, please contact us to ascertain the exact level of the exit charge at that moment.	You have the possibility to repay this loan early, either fully or partially. (Where applicable) [Conditions] (Where applicable) Exit charge: [insert amount or, where not possible, the method of calculation] (Where applicable) Should you decide to repay this loan early, please contact us to ascertain the exact level of the exit charge at that moment.
10. Flexible features	10. Flexible features
(Where applicable) [Information on portability/subrogation] You have the possibility to transfer this loan to another [lender][or] [property]. [Insert conditions] (Where applicable) You do not have the possibility to transfer this loan to another [lender] [or] [property]. (Where applicable) Additional features: [insert explanation of additional features listed in Part B and, optionally, any other features offered by the lender as part of the credit agreement not referred to in previous sections].	(Where applicable) [Information on portability/subrogation] You have the possibility to transfer this loan to another [lender][or] [property]. [Insert conditions] (Where applicable) You do not have the possibility to transfer this loan to another [lender] [or] [property]. (Where applicable) Additional features: [insert explanation of additional features listed in Part B and, optionally, any other features offered by the lender as part of the credit agreement not referred to in previous sections].
11. Other rights of the borrower	11. Other rights of the borrower
(Where applicable) You have [length of reflection period] after [point in time when the reflection period begins] to reflect before committing yourself to taking out this loan. (Where applicable) Once you have received the credit contract from the lender, you may not accept it before the end of [length of reflection period]. (Where applicable) For a period of [length of withdrawal period] after [point in time when the withdrawal period begins] you may exercise your right to cancel the agreement. [Conditions] Insert procedure You may lose your right to cancel the agreement if, during that period, you buy or sell a property connected to this credit agreement.(Where applicable) Should you decide to exercise your right of withdrawal [from the credit agreement], please verify whether you will remain bound by your other obligations relating to the loan [including the ancillary services relating to the loan] [, referred to in Section 8].	(Where applicable) You have [length of reflection period] after [point in time when the reflection period begins] to reflect before committing yourself to taking out this loan. (Where applicable) Once you have received the credit contract from the lender, you may not accept it before the end of [length of reflection period]. (Where applicable) For a period of [length of withdrawal period] after [point in time when the withdrawal period begins] you may exercise your right to cancel the agreement. [Conditions] Insert procedure You may lose your right to cancel the agreement if, during that period, you buy or sell a property connected to this credit agreement.(Where applicable) Should you decide to exercise your right of withdrawal [from the credit agreement], please verify whether you will remain bound by your other obligations relating to the loan [including the ancillary services relating to the loan] [, referred to in Section 8].
12. Complaints	12. Complaints
If you have a complaint please contact [insert internal contact point and source of information on procedure]. (Where applicable) Maximum time for handling the complaint [period of time] (Where applicable) [If we do not resolve the complaint to your satisfaction internally,] you can also contact: [insert name of external body for out-of-court complaints and redress] (Where applicable) or you can contact FIN-NET for details of the equivalent body in your own country.	If you have a complaint please contact [insert internal contact point and source of information on procedure]. (Where applicable) Maximum time for handling the complaint [period of time] (Where applicable) [If we do not resolve the complaint to your satisfaction internally,] you can also contact: [insert name of external body for out-of-court complaints and redress] (Where applicable) or you can contact FIN-NET for details of the equivalent body in your own country.
13. Non-compliance with the commitments linked to the loan: consequences for the borrower	13. Non-compliance with the commitments linked to the loan: consequences for the borrower
[Types of non-compliance] [Financial and/or legal consequences] Should you encounter difficulties in making your [frequency] payments, please contact us straight away to explore possible solutions. (Where applicable) As a last resort, your home may be repossessed if you do not keep up with payments.	[Types of non-compliance] [Financial and/or legal consequences] Should you encounter difficulties in making your [frequency] payments, please contact us straight away to explore possible solutions. (Where applicable) As a last resort, your home may be repossessed if you do not keep up with payments.
(Where applicable) 14. Additional information	(Where applicable) 14. Additional information
(Where applicable) [Indication of the law applicable to the credit contract]. (Where the lender intends to use a language different from the language of the ESIS) Information and contractual terms will be supplied in [language]. With your consent, we intend to communicate in [language/s] during the duration of the credit agreement. [Insert statement on right to be provided with or offered, as applicable, a draft credit agreement]	(Where applicable) [Indication of the law applicable to the credit contract]. (Where the lender intends to use a language different from the language of the ESIS) Information and contractual terms will be supplied in [language]. With your consent, we intend to communicate in [language/s] during the duration of the credit agreement. [Insert statement on right to be provided with or offered, as applicable, a draft credit agreement]
15. Supervisor	15. Supervisor
This lender is supervised by [Name(s), and web address(es) of supervisory authority/ies] (Where applicable) This credit intermediary is supervised by [Name and web address of supervisory authority].	This lender is supervised by [Name(s), and web address(es) of supervisory authority/ies] (Where applicable) This credit intermediary is supervised by [Name and web address of supervisory authority].

PART B Instructions to complete the ESIS

In completing the ESIS, at least the following instructions shall be followed.

Section ‘Introductory text’

• (1) The validity date shall be properly highlighted. For the purpose of this section, the ‘validity date’ means the length of time the information, e.g. the borrowing rate, contained in the ESIS will remain unchanged and will apply should the creditor decide to grant the credit within this period of time. Where the determination of the applicable borrowing rate and other costs depends on the results of the selling of underlying bonds, the eventual borrowing rate and other costs may be different from those stated. In those circumstances only, it shall be stipulated that the validity date does not apply to the borrowing rate and other costs by adding the words: ‘apart from the interest rate and other costs’.

Section ‘1. Lender’

• (1) Name, telephone number, and geographical address of the creditor shall refer to the contact information that the consumer may use for future correspondence.

• (2) Information on the e-mail address, fax number, web address and contact person/point is optional.

• (3) In line with Regulation 6 of the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004, where the transaction is being offered at a distance, the creditor shall indicate, where applicable, the name and geographical address of its representative in the EEA Member State of residence of the consumer. Indication of the telephone number, e-mail address and web address of the representative of the credit provider is optional.

• (4) Where Section 2 is not applicable, the creditor shall inform the consumer whether advisory services are being provided and on what basis using the wording in Part A.

(Where applicable) Section ‘2. Credit intermediary’1