John Gormley
Question:164 Mr. Gormley asked the Minister for Finance his views on the progress which has been achieved with the establishment of the Irish Financial Services Regulatory Authority. [5399/03]
Written Answers - Financial Services Regulatory Authority.
On 16 April 2002 I published the Central Bank and Financial Services Authority of Ireland Bill 2002. The main purpose of the Bill is to provide for the co-ordination of the ESCB-related functions of the Central Bank and the functions of a single regulatory authority for financial services. These will be carried out within the overall structure of the Central Bank and Financial Services Authority of Ireland.
The Bill, which recently completed Committee Stage in the Dáil, will establish a new entity, the Irish Financial Services Regulatory Authority, to manage the supervision of financial institutions in Ireland. This entity will operate within the Central Bank's legal structure, but will have its own chief executive, chairperson and members with independent functions. The chief executive, chairperson and some members of IFSRA will also be members of the Central Bank and Financial Services Authority of Ireland Board. I am hopeful that the Bill will be enacted soon, with a view to the new structures being established expeditiously.
An interim authority was appointed in tandem with the publication of the Bill to manage the transition to the new regulatory arrangements. The appointment of the interim authority has facilitated important work to date towards ensuring a smooth transition. Following an open recruitment process, a chief executive designate was appointed by the interim authority in November 2002 and the consumer director was appointed last month. A selection process for the other statutory posts, provided for by the legislation, is under way. It is intended that the interim authority will become the statutory authority on its establishment. I have met the chairman of the interim authority on several occasions in order that he can update me on progress with the arrangements for the transition to the new structures, and I am satisfied that good progress is being made in this regard.
A companion Bill is expected to be published later this year. This second Bill will implement further recommendations contained in the McDowell report, such as the establishment of a statutory financial services ombudsman scheme and of a consumer and practitioner forum via consultative panels. It will also address issues arising from the recommendations of the report of the review group on auditing.