The heads of the legislation to establish the Irish Financial Services Regulatory Authority were approved by the Government in June and the text is being prepared by the Office of the Parliamentary Counsel. The legislation will transfer existing functions of the Central Bank, the Minister for Enterprise, Trade and Employment, the Director of Consumer Affairs and the Registrar of Friendly Societies to the Irish Financial Services Regulatory Authority. This authority is to be established within the new structure of the Central Bank of Ireland and Financial Services Authority.
I am aware of public concern at the fast pace of developments in the financial sector. The matter was recently discussed before the Joint Committee on Finance and the Public Service. I am also aware of the recent initiative of the Irish Bankers' Federation and the Irish Mortgage and Savings Association to produce a code of practice on branch restructuring with particular regard to customer communications and relations and that there is a programme of public education organised by these bodies. I welcome such debate and initiatives, which help people to adapt to the changes in the banking sector and to take advantage of the new possibilities opening up to carry out banking transactions from the home and the workplace, as well as through bank branches. The banks need to work actively to bring the public with them as they restructure the retail banking network.
It is my intention that in addition to the transfer of existing functions to the Irish Financial Services Regulatory Authority, the legislation will establish a new post of the Consumer Director of the Irish Financial Services Regulatory Authority. The consumer director will have the function of monitoring and reporting on developments in the financial sector as these affect customers, as well as taking over various existing functions in relation to consumer issues. An authoritative source of information in relation to developments in this area should assist legislators and the public in ensuring the public benefits in the period ahead from a banking sector which meets the highest international standards of quality and competitiveness. In addition, it is intended the consumer director will, ex officio, be a member of the board of IFSRA. This will, for the first time, place a person with a legislatively defined consumer focus at the heart of banking regulation.