Written Answers Nos. 254-275
255. Deputy Pa Daly asked the Minister for Transport the current policy regarding the sale of tickets on services where all available seats are already reserved or occupied; and if he will make a statement on the matter. [49748/26]
View answer256. Deputy Pa Daly asked the Minister for Transport if Irish Rail has a system to monitor the total number of passengers expected on a service across all booking methods, including online bookings, ticket machines, ticket offices, and free travel pass reservations; and if he will make a statement on the matter. [49749/26]
View answer257. Deputy Pa Daly asked the Minister for Transport If passenger demand exceeds seating capacity, the measures that are taken to prevent passengers travelling without access to a seat; and if he will make a statement on the matter. [49750/26]
View answer258. Deputy Pa Daly asked the Minister for Transport the reason additional carriages are not provided where operationally possible on services known to be heavily oversubscribed; and if he will make a statement on the matter. [49751/26]
View answer259. Deputy Pa Daly asked the Minister for Transport if he is aware of concerns that the only practical way for passengers who have paid for a standard journey to obtain a seat is to pay an additional charge for first class accommodation due to overcrowding; and if he will make a statement on the matter. [49752/26]
View answer260. Deputy Pa Daly asked the Minister for Transport his views on the fact that passengers can hold a valid ticket, the operator can know in advance that demand exceeds available seating, and yet passengers may still be required to stand unless they pay an additional premium; and if he will make a statement on the matter. [49753/26]
View answerI propose to take Questions Nos. 255, 256, 257, 258, 259 and 260 together.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.
The query raised by the Deputy is an operational matter for Iarnród Éireann. I have, therefore, referred the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a reply within ten working days.
261. Deputy Michael Murphy asked the Minister for Transport if he is aware that some eligible bus operators missed the application deadline for the rural transport support scheme due to exceptional operational pressures during the peak school transport and tour season; whether his Department will consider accepting late applications in exceptional circumstances where there is no prejudice to the administration of the scheme; and if he will make a statement on the matter. [49815/26]
View answerAs Minister of State at the Department of Transport with special responsibility for Rural Transport, I have responsibility for policy and overall funding in relation to rural public transport service provision; however, I am not involved in the day-to-day operations.
Support for operators of TFI Local Link services is available through the National Transport Authority (NTA). These support mechanisms will be administered through contractual arrangements and do not need to be applied for separately under the Road Transporters Support Scheme.
The National Transport Authority (NTA) has statutory responsibility for securing and monitoring the provision of public passenger transport services nationally, including TFI Local Link services. In light of the NTA responsibilities I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
262. Deputy Niall Collins asked the Minister for Transport if advice will be provided in relation to matters raised in correspondence (details supplied); and if he will make a statement on the matter. [50079/26]
View answerThe Government is fully committed to supporting a significant expansion and modernisation of the EV charging network over the coming years and reaching climate targets. Having an effective and reliable charging network is an essential part of enabling drivers to make the switch to electric vehicles.
The National EV Charging Infrastructure Strategy outlines the requirements for publicly accessible charging and installing EV Infrastructure that is capable of meeting user needs. This strategy is currently being revised, and a refreshed strategy for 2026-2028 was published for consultation between February and April.
Home charging is, and is expected to remain, the primary means by which most drivers charge their vehicles. Public charging infrastructure plays a critical complementary role, not only in supporting enroute journeys, but also in ensuring that those who cannot charge at home are not disadvantaged and can participate fully in the transition to electric vehicles.
The Regional and Local EV Charging Network Plan, which focuses on neighbourhood and destination charging locations, will be led by Local Authorities in partnership with both public and private sectors.
Local authorities will be funded by my Department, through Zero Emission Vehicles Ireland, to develop local and regional EV charging network strategies and implementation plans. This process will identify the number of charge points required in each area, including on-street chargers to serve residents without access to private off-street parking.
The Government recognises that the absence of off-street parking presents a particular challenge for some households. Addressing this barrier is a key priority. Work is underway to introduce new legislation establishing a regulated private wires regime. Officials in the Department of Climate, Energy and the Environment and the Department of Transport are examining solutions to domestic EV charging where offstreet parking is not possible as part of the development of this new legislation and a solution will be included in the Bill as required. This will enable appropriate charging solutions to be deployed safely in residential settings where direct home charging is not currently possible.
263. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance if he will consider supporting an organisation's proposed measures (details supplied) as a means of supporting employment, tourism and enterprise development in rural Ireland; and if he will make a statement on the matter. [49626/26]
View answerThe Department of Finance receives pre-Budget submissions from a wide range of stakeholders in advance of each Budget and all are given consideration as part of the annual policy cycle.
Proposals for new tax expenditures are examined by reference to the Department of Finance Tax Expenditure Guidelines, which outline the Government’s approach to when tax expenditures are best used, noting that these narrow the tax base, and how they should be evaluated.
With regard to rural pubs, the Department has received and acknowledged a submission from the Vintners’ Federation of Ireland proposing an On-Trade Sustainability Scheme. As this proposal is a targeted tax incentive, consideration of European State aid compatibility would also be required.
The Government is conscious of the challenges facing all businesses in the current economic climate, including the pub sector. The Cost of Business Advisory Forum is working to look at the structural issues that are driving up costs and the steps that could be taken to mitigate them. A range of direct expenditure supports are also available to businesses, and details can be found online on the National Enterprise Hub.
There are a number of existing tax supports available to all businesses, including the on-trade. These are intended to encourage investment in the economy and in particular in indigenous SMEs. These measures provided for by Part 16 of the Taxes Consolidation Act 1997 include the Employment Investment Incentive the Start-Up Relief for Entrepreneurs and the Start-Up Capital Investment.
In addition, the Government announced two energy support packages earlier this year which included temporary excise rate reductions for auto fuels and Marked Gas Oil and an enhancement to the Diesel Rebate Scheme. Government also announced the deferral of the planned 1 May carbon tax rate increase until 14 October 2026. While no Government can fully insulate against energy price shocks, these measures provide support to households and the broader economy by alleviating some of the financial pressures arising from fuel price increases.
It is also worth noting that there has been no general increase in excise duty rates for alcohol since in 2014. While the retail price of beer has risen over that period, the excise duty has remained unchanged and, therefore, the total tax as a percentage of the retail price of each pint is now lower than it was more than a decade ago.
Notwithstanding the above, the matters raised in the submission will continue to inform ongoing policy considerations in the context of the budgetary process.
264. Deputy Pa Daly asked the Tánaiste and Minister for Finance if he has considered directing Revenue to draft a statutory instrument extending postponed VAT accounting to private BEV importers via EORI registration; and if any modelling has been carried out on the possible ESR compliance savings there might be if this policy was implemented [48827/26]
View answer265. Deputy Pa Daly asked the Tánaiste and Minister for Finance if he has considered directing Revenue to issue updated OMSP valuation guidance capping the VAT base at 110% of the verified UK purchase invoice for private BEV import; and if any modelling has been carried out on the possible ESR compliance savings there might be if this policy was implemented [48828/26]
View answerI propose to take Questions Nos. 264 and 265 together.
The VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they are exempt or fall within certain categories of goods and services to which Member States are permitted to apply lower VAT rates subject to certain rules. The Directive sets out the circumstances in which VAT arises, and these include when goods are supplied within the EU, and when goods are imported into a Member State from outside of the Union.
Where goods are subject to VAT at import, the VAT rate that applies is the rate applicable to similar goods when they are sold within the State. In line with the Directive, vehicles – including battery electric vehicles (BEVs) – are subject to the standard rate of VAT, which in Ireland is currently 23%.
In accordance with the EU VAT Directive, the value of imported goods for the purpose of VAT is their value for customs purposes increased, where applicable, by the amount of any customs duty, anti-dumping duty and excise duty payable in relation to their importation, any transport, handling and insurance costs, and any onward transportation costs to the place of final destination at the time of importation.
There is no scope under EU VAT law for capping the VAT base as proposed by the Deputy.
Revenue has published guidance on import VAT, which is available at www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/imports/when-is-vat-payable-on-importation.aspx
Revenue has also issued guidance in relation to VAT on transactions involving motor vehicles on Revenue.ie www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf
The EU VAT Directive permits Member States to provide that the payment of import VAT can be postponed by importing businesses (or persons liable for payment of VAT) or certain categories thereof, under the condition that the import VAT is recorded in their periodic VAT return. On this basis, in the context of managing the impact on business of Brexit, Ireland introduced postponed accounting from 1 January 2021 for VAT registered businesses who are also registered for excise and customs (EORI). It is not possible under EU law to extend postponed accounting to non-VAT registered or private importers (including private importers of BEVs), as they are not required to file periodic VAT returns.
Revenue has published comprehensive guidance on postponed accounting on Revenue.ie - www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/imports/postponed-accounting.aspx and
www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part07-provisions-relating-to-imports-exports/postponed-accounting.pdf
266. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance to respond to the points made (details supplied) regarding the BIK treatment of company cars. [49013/26]
View answerSection 121 of the Taxes Consolidation Act (TCA) 1997 provides that where a car is made available for the private use of an employee then the employee is chargeable to benefit in kind tax (BIK). Where such a benefit is provided for an employee by his or her employer, the employer is required to include that notional payment as part of the employee’s emoluments and to deduct tax via the PAYE system accordingly.
A CO2-based BIK regime for employer provided vehicles became effective from 1 January 2023. From that date the taxable BIK amount is based on the car’s original market value (OMV) and the annual business kilometres driven, with new CO2 emissions-based bands determining whether a standard, discounted, or surcharged rate applies. The number of mileage bands was reduced from five to four.
While, the new regime provides for higher BIK rates for cars with above average emissions and for those with low business mileage, it should be noted, that the rates remained largely the same in the lower to mid mileage ranges for the average lower emission car. Additionally, Battery Electric Vehicles (BEVs) and plug in hybrids, benefit from a preferential rate of BIK, ranging from 6 – 22.5% depending on mileage and CO2 emissions. Fossil-fuel vehicles are subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
It was determined that reforming the BIK system to incorporate emissions bands offered a more environmentally sustainable rationale than continuing with the previous system. This brought the taxation of employer provided cars into step with other CO2-based motor taxes as well as with the long-established CO2-based vehicle BIK regimes in other EU Member States.
Due to the impact of the new emissions-based BIK system on certain petrol and diesel cars, Finance Act 2023 introduced a temporary universal relief of €10,000 to the Original Market Value (OMV) of vehicles in Category A1-D, thereby reducing the amount of BIK payable. This measure applied to both cars and vans and meant that, when calculating the BIK liability employers could reduce the OMV by €10,000.
This was extended in Finance Act 2024. The Finance Act 2025 further extended this measure, providing that the OMV reduction applies for the years of assessment 2026 to 2028, with the relief for 2027 and 2028 available on a tapered basis. This means that, for the years of assessment 2023 to 2026 inclusive, the OMV is reduced by €10,000, and by €5,000 and €2,500 for the 2027 and 2028 years of assessment, respectively.
It should be noted that an employee who uses an employer provided car mainly for carrying out business journeys (for example, a sales representative) will have generally greater business mileage. Mileage bands ensure that cars that are more integral to the conduct of the business benefit from lower rates of BIK. The reduction in the lower limit of the highest mileage band from 52,001 kilometres to 48,001 kilometres, introduced in the Finance Act 2023 and made permanent in the Finance Act 2025, means that employees with business mileage in excess of 48,001 kilometres can apply the lowest rates of BIK.
Further information on the taxation of employer provided vehicles can be found on Revenue's website.
267. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance the total cost of engagement with a company (details supplied) in each of the years 2020 to 2025, across his Department, by project, year and value; and if he will make a statement on the matter. [49093/26]
View answerI wish to inform the Deputy that in 2022 my Department engaged the company in question to gather and collate data to enable the Department to conduct a review of the international retail banking market.
The details of this contract award were previously included in an answer to a parliamentary question in 2023. The amount finally paid to the company was €99,704 inclusive of VAT. This payment was after a professional withholding tax deduction of €19,360.
268. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance if his attention has been drawn to the long waiting periods for cases to go to adjudication at the Financial Services and Pensions Ombudsman (details supplied); the steps he is taking to address these long waiting times; and if he will make a statement on the matter. [49148/26]
View answerThe Financial Services and Pension Ombudsman (FSPO) provides an independent, fair, impartial, confidential and free service to help resolve complaints from consumers and small businesses against financial service providers and pension providers.
The FSPO is independent in the performance of their statutory functions and they have advised me that they cannot comment on individual complaints or confirm receipt of complaints in relation to any individual financial service provider, pension provider or complainants.
Any complainant or provider may contact the Office of the FSPO directly if they have any query in respect of a complaint to which they are a party.
According to the most recently available data, 88% of complaints are closed within 12 months. For all complaints that closed in 2025, including tracker mortgage complaints, the average time from receipt of complaint to closure, was 8.3 months.
More complex complaints, including those requiring a formal adjudication, can take longer to resolve. This reflects the fact that formal adjudications by the FSPO are legally binding and therefore must follow due process.
In December 2023, the Minister for Finance sanctioned a significant increase in additional staff for the FSPO under its Workforce Plan 2024-2026. This increased the sanctioned staff complement from 90 to 128, a more than 40% increase.
This additional resourcing has been provided to the FSPO in order for them to resolve complaints more promptly.
269. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance if he can confirm, considering all other things being equal, the difference in net take-home income between a lone parent household with a single earner on €88,000 and a married couple or two-adult household on a combined income of €88,000; if he will outline the basis for any disparity; and if he will make a statement on the matter. [49157/26]
View answer270. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance the specific measures, he is considering in Budget 2027 to address what many view as a “single person penalty” within the tax system; whether he will commit to reforming tax credits and bands to better reflect the reality that lone parents are supporting an entire household on a single income; and if he will make a statement on the matter. [49158/26]
View answer271. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance if he agrees with the assessment that lone parents are being asked to earn nearly twice as much just to achieve what dual-income households get by default, all while carrying the full weight alone; the measures he is taking to address this; and if he will make a statement on the matter. [49159/26]
View answerI propose to take Questions Nos. 269, 270 and 271 together.
By way of background, prior to 2000, the income tax system allowed for full joint assessment of married couples. This meant that a married one earner couple could use the combined tax credits and standard rate band available to both individuals – i.e. double the personal tax credit and standard rate band available to a single earner. However, as a result, where the primary earner of a married couple had sufficient income to use the available reliefs in full, the second earner faced the marginal rate of income tax from the first pound of income earned, which acted as a disincentive to workforce participation for second earners.
A process of moving towards an individualised system of income taxation began in the tax year 2000/2001, with initial steps being taken to individualise the tax bands. The stated economic objective behind the move was to increase labour force participation and reduce the numbers of workers paying the higher rate of income tax. It should be noted that many European countries have made similar moves towards a partial or fully individualised income taxation system on the grounds that it improves equality and economic independence for women.
The policy of individualisation never advanced beyond the initial step outlined above. The result is that we now have a hybrid system, which has been maintained for over 25 years. For example, under joint assessment, up to €9,000 of the standard rate band can be transferred between married couples/civil partners and the married personal tax credit can be allocated in full to one spouse or apportioned between spouses depending on their income levels.
The issue of tax individualisation was considered by the Commission on Taxation and Welfare (CoTW) in 2022 and it recommended a phased move towards individualisation of the Standard Rate Cut Off Point as a step towards addressing disparities in the income tax system, facilitating increased employment, and decreasing the gap in the employment rate between men and women. Further details are set out in the Report of the Commission, located at the following link -
www.gov.ie/en/publication/7fbeb-report-of-the-commission/
Turning to the tax treatment of single parent families, section 462B of the Taxes Consolidation Act (TCA) 1997 provides for the Single Person Child Carer Tax Credit (“SPCCC”). Subject to the conditions of section 462B TCA 1997 being met, the SPCCC is available to a single person who proves that they have a qualifying child resident with them for the whole or greater part of the year of assessment. The SPCCC has a nominal value of €1,900 per annum and carries an entitlement to an additional €4,000 extended rate band, such that those availing of the credit can earn up to €48,000 in 2026 before liability to the higher rate of income tax arises.
In relation to the Deputy’s specific question regarding the difference in net take-home income between the two households outlined, it is not possible to determine the net income without knowing the compositional breakdown of the couple’s income. As the Deputy will be aware, the income tax system allows married couples and civil partners to choose whether to be jointly or individually assessed.
USC is an individualised tax and encompasses a number of thresholds and rates and therefore a taxpayer’s liability can only be calculated if the individual’s income is known. Likewise, PRSI is also an individualised charge.
The objective of the income tax system is to strike a balance between raising revenue to fund public services and supporting and incentivising work.
The Government acknowledges the challenging circumstances that face many single parent families, and it is for this reason that a broad range of supports, including non-tax supports, are provided for such families.
Finally, as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
272. Deputy Carol Nolan asked the Tánaiste and Minister for Finance the number of credit unions currently operating in in the State; to list all mergers of credit unions which have taken place from 1 January 2023 to date; his position on future credit union mergers; if such mergers are necessary; and if he will make a statement on the matter. [49168/26]
View answerFramework for the operation of credit unions
Generally speaking, credit unions in Ireland are regulated and supervised under the Credit Union Act, 1997 (the 1997 Act) and regulations issued by the Central Bank of Ireland (Central Bank), which set out the framework for the registration, regulation and operation of credit unions.
Under the 1997 Act, the Central Bank is responsible for administering the system of regulation and supervision of credit unions to ensure each credit union protects its members’ funds and to ensure the maintenance of the financial stability and well-being of credit unions generally.
Number of credit unions currently operating in the State
Under section 8(5) of the 1997 Act, the Central Bank is required to enter the name of every credit union in a register maintained for the purposes of the 1997 Act (being a continuation of the register kept for the purposes of the Credit Union Act 1966). The Central Bank publishes a register of credit unions on its website.
The Central Bank informs me that the total number of individual, actively trading credit unions is 164 as of 26th June 2026.
Amalgamations and Transfers of Engagements
Part IX of the 1997 Act allows for two or more credit unions to amalgamate by forming a credit union as their successor (section 128 of the 1997 Act) or for a credit union to transfer its engagements to another credit union which, in accordance with section 129 of the 1997 Act, undertakes to fulfil the engagements (a transfer of engagements or TOE).
In the period from 1 January 2023 to 26 June 2026, a total of 39 TOEs have been confirmed by the Registry of Credit Unions within the Central Bank. No amalgamations of credit unions took place during that period.
The Central Bank does not publish or otherwise make available a list or register of amalgamations or TOEs that have taken place. However, in accordance with section 100(1) of the 1997 Act, the Central Bank must prepare and keep a public file relating to each credit union.
In this regard, sections 100(2)(a) and (b) of the 1997 Act require that any instrument of transfer of engagements under section 129, by which the credit union transfers its engagements or undertakes to fulfil the engagements of another credit union, must be placed on the public file of a credit union.
Credit union mergers and restructuring
The Credit Union Restructuring Board (ReBo)
Following a recommendation from the Commission on Credit Unions, the Credit Union Restructuring Board (ReBo) was established under the Credit Union and Co-operation with Overseas Regulator Act 2012, to facilitate and oversee the restructuring of credit unions on a voluntary basis.
During its period of operation, ReBo oversaw and facilitated 82 restructuring projects involving 156 credit unions with assets totalling circa €6 billion.
Review of Restructuring in the Credit Union Sector 2019
The Thematic Review of Restructuring in the Credit Union Sector, published by the Central Bank in February 2019, found that while the number of registered credit unions had reduced by 35% from 30 September 2013 to 30 September 2018, there was only an 8% reduction in business locations operated by credit unions over that period of time.
The Review also found that in the 77% of transfers completed between those dates, no business locations had closed as a result of the completion of a transfer.
The Review found that restructuring had a positive impact on the financial position and performance of credit unions as transferees, with higher lending growth and helped help credit unions to realise cost savings by eliminating duplicated costs and achieving scale economies.
Regulatory and Supervisory Outlook 2026
In the Central Bank’s Regulatory and Supervisory Outlook 2026 report, the Central Bank noted that sector restructuring continues to improve sustainability, create scale and help address organisational weaknesses.
On business model and strategy, the Central Bank noted that significant change in the credit union sector has been driven by consolidation and the provision of a broader range of products and services to their members.
One of the Central Bank’s main planned activities relating to this supervisory focus area is to support strategic restructuring activities for TOE projects by credit unions, with enhanced post transfer oversight for large scale TOE projects.
273. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether Revenue has any discretion to accept a claim for the Widowed Person Tax Credit submitted outside the statutory four year time limit in exceptional or compassionate circumstances; whether any provision exists to allow such cases to be reviewed where a claimant was unaware of their entitlement or of the applicable deadline (details supplied); and if he will make a statement on the matter. [49331/26]
View answerSection 461A Taxes Consolidation Act 1997 (TCA) provides for a tax credit for a widowed person or surviving civil partner, which may be claimed in the year of assessment following the year of bereavement. The value of this credit is €540 for the 2026 year of assessment and subsequent years. The widowed person or surviving civil partner is entitled to this credit in addition to the basic personal tax credit. Further detailed guidance on the tax treatment of bereaved spouses and civil partners can be found at: www.revenue.ie/en/life-events-and-personal-circumstances/death-and-bereavement/widowed-person-or-surviving-civil-partner/index.aspx.
I am advised by Revenue that section 865 TCA provides a general right to repayment of tax where a person has paid an amount which is not due. However, section 865(4) TCA states that right is subject to the making of a claim within four years after the end of the chargeable period to which the claim relates.
274. Deputy Edward Timmins asked the Tánaiste and Minister for Finance the reason the physical trading and custody of precious metals in Ireland remains outside the direct regulatory remit of the Central Bank despite an industry estimated to manage between €500 million and €1 billion in client assets [49436/26]
View answerThe activities that come within scope of the Central Bank’s regulatory remit are set down in domestic and EU legislation covering the regulation of financial services. The activity referred to in the Deputy’s question does not fall within the Central Bank’s regulatory remit as commodities are not a financial instrument as defined in the MiFID II framework.
The MiFID II framework applies to investment services provided in respect of financial instruments. Physical commodities, including precious metals, are not financial instruments for the purposes of MiFID II and accordingly, the physical trading or custody of precious metals does not constitute a regulated financial service.
The Central Bank’s Consumer Protection Code 2025 (the Code) applies to the regulated activities of regulated entities operating in the State, including financial services providers authorised, registered or licensed by the Central Bank and financial services providers authorised, registered or licensed in another EU or EEA Member State when providing services in this State on a branch or cross-border basis. The physical trading or custody of precious metals is not a regulated activity for the purposes of the Code and therefore falls outside its scope.
Similarly, the Central Bank’s Client Asset Requirements apply only where an authorised regulated financial service provider receives or holds client funds or client financial instruments on behalf of clients in connection with the provision of regulated financial services. They do not establish a standalone regulatory regime governing the custody of physical commodities or other non-financial assets.
If there is a concern regarding the conduct of an unauthorised firm or a firm that is suspected to be engaged in the provision of financial services without the appropriate authorisation, this can be reported to the Central Bank at www.centralbank.ie/regulation/how-we-regulate/authorisation/unauthorised-firms.
275. Deputy Edward Timmins asked the Tánaiste and Minister for Finance if he will require stockbrokers and investment firms operating in Ireland to provide greater transparency to retail investors regarding the treatment of partially filled trading orders, including the execution methods used and the associated commissions, fees, and costs charged to clients [49437/26]
View answerThere is a strong legislative framework in place to protect retail investors in Ireland. The European Union (Markets in Financial Instruments) Regulations 2017 (MiFID Regulations) transpose the EU Markets in Financial Instruments Directive into Irish law and govern the provision of investment services, including the execution of transactions on behalf of clients in respect of financial instruments.
Under Article 24 of the MiFID Regulations, investment firms are subject to an over-arching obligation to act honestly, fairly and professionally in accordance with the best interests of their clients. Acting in the client's best interest would include investment firms considering the overall costs and charges of available product options and, where several products could appropriately meet the client’s needs, recommending the most cost-efficient option, unless they could demonstrate that a more costly product might provide objectively greater benefits for that specific client.
More specifically, when executing transactions in financial instruments for clients, investment firms are subject to ‘best execution requirements’ which set standards of due care and diligence that firms must follow. Under Article 27 of the MiFID Regulations, investment firms must take all sufficient steps to obtain, when executing orders, the best possible result for their clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.
The ‘best possible result’ shall be determined in terms of the total consideration, representing (a) the price of the financial instrument, and (b) the costs related to execution, including (i) all expenses incurred by the client which are directly related to the execution of the order, and (ii) execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.
Investment firms must provide appropriate information to clients about their order execution policy, and this information shall explain clearly, in sufficient detail and in a way that can be easily understood by clients, how orders will be executed by the investment firm for the client.
Investment firms must obtain the prior consent of their clients to the order execution policy and they must regularly monitor the effectiveness of their policy and arrangements to ensure their ability to obtain the best possible result for their clients.
Investment firms must be able to demonstrate to their clients, at their request, that they have executed their orders in accordance with the firm’s order execution policy.
The Central Bank of Ireland conducted a thematic review which examined investment firms’ application of the costs and charges disclosure requirements set out in the MiFID Regulations and Commission Delegated Regulation (EU) 2017/565 (MiFID II), after which a ‘Dear CEO’ www.centralbank.ie/docs/default-source/regulation/industry-market-sectors/investment-firms/mifid-firms/regulatory-requirements-and-guidance/common-supervisory-action-on-mifid-ii-costs-and-charges-requirements.pdf?sfvrsn=349a9d1d_4 letter was published on 1 December 2023 providing feedback to the industry on the findings of the review. The Central Bank expects firms to adopt a proactive approach to the continuous evaluation of the effectiveness of all of its arrangements and practices, including those relating to costs and charges disclosure requirements, to ensure that they are meeting the highest standards of investor protection and delivering fair outcomes that put their clients’ interests to the fore.
Any investor that remains dissatisfied with the conduct of their financial services provider, after making a complaint through the provider’s formal complaint process, may then wish to consider making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is the relevant statutory body in Ireland with responsibility for investigating and adjudicating individual complaints from consumers in relation to the conduct of regulated financial service providers. providers.
Separately, the European Commission adopted its https://ec.europa.eu/transparency/documents-register/detail?ref=C(2026)2300&lang=en on 5 April 2026, with Article 7 setting out the requirements for the monitoring of the order execution policy; and Article 8 setting out the requirements for the periodic assessment of the effectiveness of the order execution policy. This will be applicable in all Member States and will likely come into force in September 2026.
In future, MiFID II will be amended by the Retail Investment Strategy (RIS), with the final rules expected to be published in the EU’s Official Journal in December 2026 - new obligations for investment firms will become applicable 30 months after entry into force, especially new Article 16 - Product governance requirements around value for money assessments at product approval and Article 24a Inducements test with recalibrated criteria on providing a tangible benefit or and being proportionate to the value of the product and the level of service provided. Member States will have 18 months to transpose the Omnibus Directive.
