Vol. 478 No. 3
24 Mr. Callely asked the Minister for Finance if he has satisfied himself that adequate regulations are in place to prevent dubious investment intermediaries using an Irish base; the current regulations for advisers on such investments, funds or finance to operate in Ireland; and if he will make a statement on the matter. [10959/97]
The activities of investment intermediaries are regulated under the Investment Intermediaries Act, 1995, The Act covers the provision of investment business services and of investment advice and implements the EU Investment Services and Capital Adequacy Directives in respect of certain investment firms which provide investment services defined in the Investment Services Directive.
The Central Bank is the sole supervisory authority for investment business firms. As the Deputy will be aware, amendments to the Investment Intermediaries Act, contained in the recently enacted Central Bank Act, 1997, provided for the transfer of regulatory responsibility for investment business firms from the Minister for Enterprise and Employment to the Central Bank.
It is an offence for a company registered in the State or any other person operating in the State to act as or hold himself or herself out to be an investment business firm in the State or outside the State, unless that person is acting under and within the terms of an authorisation given by the Central Bank or by a competent authority in another member state of the European Union or the person is deemed to be authorised under Part IV or Part VII of the Investment Intermediaries Act.
The Intermediaries Act gives the Central Bank appropriate powers of supervision, including power to impose conditions and requirements and to give directions to investment business firms. The Central Bank may appoint an authorised officer or an inspector, or it may apply to the High Court to appoint an inspector, to investigate the activities of an investment business firm.
