Written Answers. - Insurance Brokerage Closure.
Mary O'Rourke
Question:
48
Mrs. O'Rourke
asked the
Minister for Enterprise and Employment
his views on the closure of another insurance brokerage (details supplied); if the broker had filed recent accounts with the Companies Office, which is a division of his Department; and the proposals, if any, he intends to introduce in view of this closure and following the Taylor affair to improve the checks by his Department in the insurance broker area.
[23187/96]
Using the powers available under the Insurance Act, 1989, the Minister of State with responsibility for commerce, science and technology has appointed two authorised officers to carry out an investigation into the closure of the firm referred to by the Deputy. Until such time as he has received the report of the authorised officers, it would be inappropriate comment on the circumstances surrounding the closure.
The last annual return together with accounts for the firm concerned, filed with the Companies Office, was for the year 1993. The annual returns for the years 1994 and 1995 are outstanding. In cases where a company has failed to file annual returns for two consecutive years, the company may be struck off the Companies Office' register under section 12 of the Companies (Amendment) Act, 1982. In 1995, almost 13,000 companies were struck off the register and for 1996 the estimated figure is 11,000. The process of selecting companies for strike off is done at random by means of a computer programme. The particular company referred to by the Deputy was not extracted by this programme.
As previously indicated to the House by the Minister concerned, my Department is currently carrying out a review of the regulation of investment intermediaries. This review is, by definition, concerned with the regulation of investment intermediaries and does not directly concern the regulation of insurance brokers, which is covered by separate legislative provisions and procedures.
It is always necessary to establish priorities. Because of this, the Minister, as a first priority, set up a review of the investment intermediary area because,inter alia, of the amount of money that can be involved in this area, as evidenced, for example, in the Taylor case, and the need to maintain confidence in the Irish investment area.
I know that Minister of State, Deputy Rabbitte, is very conscious that a long hard look needs also to be taken at the regulation of insurance brokers. It is his intention, once any improvements have been put in place in the investment area, to have departmental officials review the regulatory provisions concerning the operations of insurance brokers. The results of the investigation of the authorised officers into the events surrounding the closure of the company referred to my the Deputy should provide an important input into this review.
