Dáil Éireann debate -
Tuesday, 23 Nov 1993

Vol. 436 No. 1

Written Answers. - Stock Exchange Role.

Bernard Allen

Question:

23 Mr. Allen asked the Minister for Finance if he proposes to review the regulatory role of the Irish Stock Exchange, especially in view of its record of investigating suspected misdemeanours and the impact that this has on financial institutions abroad.

Minister for Finance (Mr. B. Ahern)

At present the Stock Exchange is subject to the limited regulation of an Act of 1799, the Stock Exchange (Dublin) Act. Apart from minimal powers derived from that Act, I have no formal role to play in the operation of the Exchange and I do not supervise the day-to-day running of its financial markets.

Responsibility for company law matters and for EC listing Directives is with my colleague, the Minister for Enterprise and Employment. The Irish Unit of the Stock Exchange also exercises some powers delegated from that Department in investigating suspected breaches of the law relating to insider trading or listing procedures.

Since 1973, the Stock Exchange has been part of the International Stock Exchange, and most investigations of misdemeanours are carried out by that body in accordance with their set procedures. The Deputy will appreciate that I do not wish to make any comment on any Stock Exchange inquiry currently in progress.

I intend to bring forward legislation very shortly which will broaden the role of the Central Bank to cover prudential supervision of Stock Exchanges and their members in Ireland. The legislation will provide the Bank with the full range of powers essential to its new function. It will also discharge our obligations in relation to Stock Exchanges and their members under the EC Investment Services Directive, which was adopted in May of this year and which will have full effect from December 31, 1995.