A review of IFSRA's performance after one year in existence

IFSRA is one today. How has it done from a consumer point of view?

Limitations
It’s important to point out that IFSRA operates under certain limitations.
It is still in the process of setting itself up from a standing start.
It probably has not got all the resources it needs. It has few employees with any consumer experience or consciousness
It doesn’t yet have the legislative back up of an Ombudsman or a Consumer Council
It cannot name and shame, so it might be doing great work behind the scenes about which we know nothing.
It has no role in areas such as property investing.

Technically weak in some areas
It doesn’t really understand trackers as evidenced by its reaction to the BCP Quadruple Growth Bond and its warning/endorsement of geared trackers
A complaint about the permanent tsb SaveDirect ad got a bizarre response

It’s slow and it has to be pushed…
If it’s sure of its ground it can take firm action fast. For example, if it sees a Cayman Island bank advertising in Ireland, it will put an ad in the paper and go onto Morning Ireland warning about the dangers of such investing.

But it doesn’t seem to read the papers. It shouldn’t take cranks like me to point out front page ads in the newspapers which are misleading. When we complain, we should be told that they have already instructed that the ad be pulled and that the advertiser was censored. But instead, it launches consultation papers...

But occasionally we are pleasantly surprised by its resoluteness
It took no messing from the board of the Irish Nationwide about our motions. IFSRA decided that they were ok and that the supporting statements were ok and it simply told the board to table them.

It has issued useful codes of practice, e.g. mortgage intermediaries. It has also told intermediaries to justify the selling of non-standard PRSAs. But then again, the direct sales force of the insurance companies are not bound by this restriction.

The consumer help line is good
People have reported a good experience of the consumer help line. Individuals in IFSRA have shown a sympathetic and personal interest in their complaints and have pursued the institutions as far as they could within their powers. These IFSRA employees convey a sense of frustration at their lack of powers to help the consumer more.

The credit card survey is good
The credit card survey seems to be comprehensive and well written. The motor insurance and mortgage surveys added nothing to the general body of knowledge.

Poor sense of priorities
There is a lot to be done. I don’t think that yet another survey of motor insurance is a high priority. I don’t think that surveys of bank charges is a high priority. I don’t think that a consultation paper on trackers is a high priority. A huge amount of resources has been applied to preparing and publicising the 5 year plan. It needs to plan less and act more.

The study of interest rate pass through should have been published months ago. Why is it taking a year to compile?

I think an Irish Times editorial in January summed it up fairly:

At this stage, some nine months into its existence, we have had plenty of rhetoric from IFSRA but only limited action.

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IFRSA

It hasn't yet set up The Consumer Panel, and can't until the next legislation is passed. Mary O Dea is a find and a half, but the power still is with the old guard and the board does not represent public interest and is devoid of people with reform agenda's and backgrounds in consumer or citizen arena's. It differs significantly from the FSA in that respect.

But the public pressure exercised by the media, some politicians and other commentators including Brendan DOES have an effect, even if its a rough way still of doing business. Ideally megaphone communication to IFSRA will cease when the Consumer Panel is addressed.

IFSRA did reasonably well in how it publically reacted to AIB and it was refreshing to see an Irish financial regulator carpeting the bank - thats a BIG change. All told I think that, still in cultural transformation, IFSRA scores a pass mark - "can do better, huge room for improvement, shows plenty of promise, and has some cracking talent from Mary O Dea down to highly educated and enthusiastic officers at the coal face.

I'm guardedly optimistic