Guarantor Data Not Reportable
According to guidance issued by the Central Credit Register ("CCR"), information on guarantees provided in respect of loans which are in scope of Irish credit reporting requirements ("Guarantor Data") was scheduled for submission to the CCR by 30 September 2019. The CCR has now indicated that Guarantor Data is not reportable from this date and that the commencement date for the reporting of Guarantor Data will be advised by the Central Bank of Ireland ("CBI") in due course.
Credit Reporting Regime
The Credit Reporting Act 2013 introduced the credit reporting regime in Ireland. Under the regime, lenders must report details of in-scope loans to the CCR. In-scope loan agreements and related application documents must include a prescribed form of credit reporting warning to borrowers. Lenders are also required to check a prospective borrower's existing exposure via the CCR in advance of extending in-scope credit of €2,000 or greater. This requirement necessitates the lender's registration with the CCR, which can potentially delay the execution of lending transactions. Once commenced, registration takes a number of days to complete. However, where a lender does not have a CCR-compliant IT interface or does not engage a service provider with same, then the development and testing process for such an interface can take a number of weeks. Registration with the CCR is also required to comply with lenders' ongoing reporting requirements.
In summary, credit is in-scope of the credit reporting regime if it is:
- Provided by an Irish-based lender or a regulated financial services provider listed on any of the CBI's registers;
- Provided to a person resident in Ireland or under an agreement governed by Irish law;
- For a sum of €500 or greater; and
- Does not satisfy any of the exemptions.
The exemptions from credit reporting obligations include:
- Inter-bank lending;
- Intra-group lending (this would not include loans made to orphan SPVs); and
- Lending to government entities.
Additionally, per the CCR guidance, certain forms of credit are not within the current implementation period of the CCR, including:
- Loan notes;
- Securities; or
- Other financial instruments (e.g. assets that can be traded).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.