Vol. 539 No. 1
207 Mr. J. Mitchell asked the Minister for Finance if, in respect of the proposed Central Bank regulation of insurance brokers, he has received a letter from a person (details supplied) in County Tipperary; his response to the concerns expressed therein; and if he will make a statement on the matter. [18891/01]
Correspondence, which raised a number of detailed points, in this matter was received in my Department on 8 June and a reply was issued on 25 June. The detailed nature of the correspondence necessitated consultation with the Central Bank to ensure an accurate reply was issued.
The reply gave a background to the need for a new regulatory regime as set down in the Investment Intermediaries Act, 1995, and the Insurance Act, 2000. The reply also responded to the concerns expressed regarding the proposed new conduct of business rules which had been widely circulated as part of a consultation process. It was highlighted that these new rules, especially in the area of cold calling had not yet been finalised and that the Central Bank would re-examine them in the light of responses received from the industry. This re-examination is continuing and revised versions will be published in the coming weeks.
The reply also adverted to the need for appropriate consumer protection provisions by means of improved supervision. The new regime should help to ensure that all financial intermediaries treat their clients in a responsible manner and lessen the possibility of the misuse of client funds.
While insurance intermediaries are now regulated by the Central Bank, policy issues in regard to the insurance sector are the responsibility of the Minister for Enterprise, Trade and Employment.
