IRELAND Law and Practice Contributed by: Niall Esler, Shane Martin, Laura Whitson and Coleen Wegmann, Walkers
Lending to consumers is subject to a range of con - sumer protection requirements. RFSPs (including EEA lenders operating in Ireland on a cross-border basis) may also be subject to certain conduct-of-business rules when lending to individu - als, certain small companies or SMEs. These rules include the Consumer Protection Regulations and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 (SME Regulations). Credit Servicing Credit servicing (including legal title loan owner - ship, managing or administering a credit agreement and related borrower communications) in relation to loans to individuals and SMEs requires authorisation in certain circumstances under the CBA 1997. This regime also applies to hire-purchase agreements and consumer-hire agreements. Separately, the EU-wide Credit Servicers Directive (Directive (EU) 2021/2167) has been introduced and regulates credit servicers in certain circumstances. Crowdfunding The Crowdfunding Regulation facilitates peer-to-peer business lending, with regulated crowdfunding service providers being authorised to facilitate the granting of loans. Crowdfunding service providers can also perform individual portfolio management of loans for investors within certain criteria. CRD VI Implications From 11 January 2027, non-EU (third-country) under - takings must establish an authorised EU branch to commence or continue carrying out certain core- banking activities in an EU member state, unless an exemption applies. The core-banking services impacted by CRD VI include lending activities to con - sumers and non-consumers, where the third-country undertaking would qualify as a credit institution if it were established in the EU. 4.2 Underwriting Processes Irish conduct-of-business rules and legislation require creditworthiness or suitability assessments in certain circumstances; for example, the European Communi -
ties (Consumer Credit Agreements) Regulations 2010, the Consumer Protection Regulations and the SME Regulations are relevant in this regard. Ireland has established a Central Credit Register under the Credit Reporting Act 2013, which lenders must check before advancing in-scope credit; the Act also requires lenders to report lending information. 4.3 Sources of Funds for Fiat Currency Loans Credit institutions such as banks raise funds for their lending activities from a wide range of sources, including deposits, inter-bank lending, issuing debt and securitisations. Deposit-taking in Ireland triggers a requirement for a banking licence, and securitisa - tions are subject to a number of Irish and EU rules. Dedicated lending entities (eg, retail credit firms) may raise funds for their lending activities from securitisa - tions or lending from other investors or institutions. Funds may also be sourced through peer-to-peer lending (eg, via a crowdfunding service provider). 4.4 Syndication of Fiat Currency Loans It is not typical for consumer loans or loans to small businesses to be syndicated. The Crowdfunding Reg - ulation provides a European framework for peer-to- peer lending platforms. 5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails Payment processors may use existing payment infra - structure or create or implement new payment rails, as long as they operate within the bounds of their financial services authorisation and adhere to rel - evant regulatory requirements. The Central Bank is responsible for approving the establishment of new payment systems in Ireland under the CBA 1997. The Central Bank also conducts oversight assessments of relevant entities and systems against oversight princi - ples and standards such as the Payment Instruments, Schemes and Arrangements (PISA) Framework.
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