Revised Standard Financial Statement to assist borrowers in financial distress introduced

05 January 2022 Press Release

Central Bank of Ireland

  • Review highlighted complexity in completing the SFS for borrowers
  • New amended format and language is simplified and more borrower friendly
  • Revised borrower Guide published to assist borrowers in completing their SFS

The Central Bank of Ireland today published a revised simplified Standard Financial Statement (SFS) to assist borrowers in financial distress following its Review of the Standard Financial Statement, the revised SFS must be used by all regulated firms from 1 January 2022.

The SFS is used by regulated firms to gather information from distressed borrowers on their current financial situation. Once it is completed, their lender can assess whether it can offer a borrower an alternative repayment arrangement.

The 2021 Central Bank review of the SFS found that it was a complex document for borrowers to complete, with some borrowers struggling with the length of the document and having difficulty understanding and gathering the information required. The revised SFS is easier to understand and navigate and significantly shorter in length that the previous version.

To assist borrowers in completing the SFS, the Central Bank is today publishing a Consumer Guide on the completion of the SFS and other guidance material, aimed at enhancing borrower understanding of the SFS and how it should be completed.  

Protection of borrowers in financial difficulty is a key priority for the Central Bank. The existing regulatory framework provides a significant number of protections and supports for borrowers in or facing mortgage arrears. The Central Bank has reviewed, advocated for and strengthened these rules, when necessary, in order to ensure that the regulatory framework remains fit for purpose and continues to ensure the protection of consumers in their dealings with their financial institutions. The amendments to the SFS will further enhance those protections.