Dáil Éireann debate -
Thursday, 5 Nov 1992

Vol. 424 No. 10

Ceisteanna — Questions. Written Answers. - Financial Services Sector Regulations.

Bernard J. Durkan

Question:

62 Mr. Durkan asked the Minister for Finance whether he has received representations requesting revision of benefit-in-kind changes set out in the Finance Act, 1992; the changes, if any, he proposes in the context of the 1993 estimates; and if will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

Legislative proposals are being brought forward to extend regulation in the financial sector. The purpose of the proposed legislative measures will be to update regulation, to close existing gaps in the existing regulatory structure and to provide for the regulatory requirements of a European Community draft Directive on Investment Services which is expected to be discussed shortly.

In relation to the Stock Exchange, which is currently subject to Stock Exchange rules, legislation is necessary to designate a national competent authority under the draft EC Directive, which is to be the Central Bank. Draft legislation to effect this change and to update the regulatory system is now in the final stages of preparation.

In relation to investment intermediaries who are not stock exchange brokers or whose products are not regulated under the Insurance Act, 1989, consideration of proposals for an appropriate regulatory framework is now completed following consultation with the interests involved.

These proposals will have to take account of the provisions of the draft EC Directive on Investment Services. The directive is expected to be discussed by EC Ministers shortly at the ECOFIN Council. Following the outcome, I will bring forward draft legislation to give effect to the necessary extension of regulation of the activities of investment intermediaries which are not covered by existing legislation.