Amended Credit Servicing Regulatory Regime Now In Force

Following the issuance by the Minister for Finance, Paschal Donohoe, of a commencement order, the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 (the "Act") has entered into force from 21 January 2019.

Overview - New Regime now in Force

The introduction of the Act means that a number of previously unregulated entities (e.g. SPVs) that:

1. hold legal title to relevant portfolios of Irish loans¹ ("Relevant Portfolios"); and / or
2. control the overall strategy or key decisions relating to credit,

are now subject to regulation and a requirement to apply to the Central Bank of Ireland (the "Central Bank") for authorisation to carry on the business of a credit servicing firm (in the absence of any acceptable restructuring solution). Due to the broad potential scope of the Act, participation in certain types of syndicated loans by unregulated lenders may also come within scope.