Vol. 496 No. 6
43 Mr. Broughan asked the Minister for Finance when the Financial Services Authority Bill will be available to Opposition spokespersons and Dáil Éireann; and the extent to which its procedures and regulatory powers and penalties will be modelled on the United Kingdom Financial Services Authority. [21143/98]
On 20 October 1998 the Government agreed in principle to the establishment of a single regulatory authority for the financial services sector at the earliest date possible, and agreed to the immediate establishment of an implementation group to progress the necessary work.
The implementation group is to advise the Government on the following. First, the role and functions of the single financial regulatory authority, that is, prudential supervision, the maintenance of orderly markets, safeguarding of clients' funds, consumer protection, the development and regulation of conduct of business rules, including consideration of the issues arising from combining the functions of monetary policy and prudential regulation. Second, the range of financial service providers to be overseen by the authority, that is, banks, building societies, Post Office Savings Bank, insurance companies and brokers, investment intermediaries, including lawyers and accountants in as much as they handle clients' funds, exchanges, credit unions, friendly societies, finance companies, moneylenders etc., also taking account of the development of electronic commerce which may involve new types of service providers. Third, the extent to which, if any, existing regulators, that is, the Director of Consumer Affairs, Registrar of Friendly Societies, Central Bank and the Department of Enterprise, Trade and Employment, would continue to have functions in relation to the regulation of the financial services sector and the extent to which any alteration to the status quo would impinge on the nonregulatory functions of the Central Bank. Fourth, the organisational structure for the authority including the manner of its public accountability. Fifth, the funding, resourcing and staffing of the authority — and issues arising in a transition to a new structure, including staffing and industrial relations, and the extent to which the authority could be self-financing. Sixth, the legislative changes necessary for the establishment of the authority. Seventh, the time schedule — including, in so far as necessary, a phased implementation — for achieving the objective of a fully operational single financial regulator at the earliest date possible.
The implementation group, consisting of nine members in all under the Chairmanship of Michael McDowell SC, is to report jointly to the Tánaiste and to me by end February 1990.
