Should debt management and debt advice companies be licensed?

[Brendan Burgess]

1.[FONT=&quot] [/FONT]Do you agree that commercial debt management and debt advice companies should be subject to a licensing regime? [Paragraph 4.248]

2.[FONT=&quot] [/FONT]Do you agree that the proposed licensing regime for debt advice and debt management companies should be supervised by the Irish Financial Services Regulatory Authority? Do you agree that IFSRA should be given statutory powers to issue binding codes of conduct in respect of such companies? [Paragraph 4.250]

3.[FONT=&quot] [/FONT]Do you agree that standards should be established relating to the quality of advice provided by debt advice and debt management companies? This would involve creating minimum levels of training and skills for debt advisors. [Paragraph 4.252]

4.[FONT=&quot] [/FONT]Should the proposed licensing regime for debt advice and debt management companies be extended to non-profit, non-fee-charging organisations? [Paragraph 4.254]

 

[Colndas]

In answer to all four points, yes.

Licencing should be in place with standards set in the same format as the regulatory process that mortgage and insurance intermediaries undertake.

 

[pjmn]

1. Yes
2. Yes
3. Yes
4. Yes

 

[Colndas]

Before any licence is given they should pass a minimum competency test. There is no point closing the door after the horse has bolted.

 

[jack2009]

I agree that the area needs to be monitored. However, I am not 100% certain that a licence need be obtained as I would be worried about the actual body who issues the licences creating yet another service that the tax payer has to pay for or developing a licencing authority that is only interested in creating turnover etc. Perhaps a solution would be that if it mainly solicitors or accountants who act in the area that their relevant bodies issue licences. Otherwise I would be worried about who monitors the monitors.

I do not belive that IFSRA should be giving the sole responsibility for issueing codes of conduct. I believe the some sort of consultative committee should be developed and this committee could be made up of IFSRA and members from other bodies ie CIMA, ACCA, ACA and Law society etc.