Why the FSPO refers complaints to other European countries

The functions of the FSPO are governed by the provisions of the Financial Services and Pensions Ombudsman Act 2017, as amended (the Act). The FSPO can investigate any consumer complaint made about the conduct of a “financial service provider” which has a specific definition under the Act, and which makes reference to the separate provisions of the Central Bank Act 1942, as amended.

This definition includes financial service providers that are regulated in this country by the Central Bank of Ireland. It also includes other financial service providers which are regulated by a competent regulatory authority in another member state of the European Economic Area (EEA).

When investigating complaints, the FSPO must consider the regulatory status of the financial service provider whose conduct is the subject of the consumer complaint, to ensure that it is a regulated entity meeting the definition under the Act.

In addition, the FSPO must also consider the particular law which is specified by the contract, to be the governing law of that contractual arrangement in place between the consumer and the financial service provider.

When the consumer contract is not governed by Irish law, the FSPO may not be the appropriate forum to adjudicate on a complaint. The FSPO assesses those individual complaints and the FSPO may refer the complainant to the appropriate Alternative Dispute Resolution (ADR) body or the Courts in the relevant country, or to another appropriate forum as the competent authority to adjudicate the complaint in relation to the conduct arising.

This includes referrals to ADR bodies within the EEA, in accordance with the FIN-NET Memorandum of Understanding on a Cross-Border Out-of-Court Complaints Network for Financial Services (PDF).