---

FSPO changes bring ‘welcome clarity’ – ALG

President Higgins has signed into law an act that amends the legislation underpinning the Financial Services and Pensions Ombudsman (FSPO).

The amendments were required to enable the FSPO to continue carrying out its functions in line with the Constitution.

Lawyers at A&L Goodbody (ALG) say that the changes introduce “welcome clarity” for consumers and financial-services providers, and minimise the risk that decisions made by the FSPO will be subject to legal challenges similar to that brought in the Zalewski case. 

They add that the Financial Services and Pensions Ombudsman (Amendment) Act 2025 is subject to commencement orders.

Safeguards

The need for the changes arose after a Supreme Court decision in Zalewski, which centred on the Workplace Relations Commission (WRC) and its quasi-judicial role.

The court mandated procedural safeguards to ensure that the WRC was complying with constitutional standards of justice. The FSPO also engaged with the Government on any legislative changes needed to address any potential challenges.

The ALG lawyers say that the key changes in the 2024 act are:

• Amendment to allow for witnesses to be cross-examined on oath or affirmation,
• Provision for the ombudsman to decide whether an oral hearing should be conducted in public,
• A new sub-section stipulating that mediations shall be conducted in private,
• Amendment to include the following within the scope of the ‘obstruction’ offence for: (i) the refusal to be examined or cross-examined on oath or affirmation; and (ii) giving evidence on oath or affirmation that is false or known to be false, and
• Amendment allowing the ombudsman to identify the parties when publishing decisions, case studies, or reports if an oral hearing was conducted in public as part of the investigation.

The act also changes the definition of ‘financial-services provider’ to include institutions that have left the Irish market, meaning that customers of such entities can still access FSPO services.

The ALG lawyers point out that the new definition also addresses the position of mortgage holders whose loans had been sold prior to 2015 and between 2015 and 2018.