Dáil Éireann Debate, Thursday - 9 December 2004
144 Mr. Durkan asked the Minister for Finance if he has satisfied himself that the legislation provided by his Department is adequate to enable IFSRA carry out its work effectively; and if he will make a statement on the matter. [32856/04]
View answerThe Minister for Finance is responsible for the development of the legal framework governing financial regulation. Once the necessary legislative framework has been put in place, day to day responsibility for the supervision of financial institutions is a matter for the Irish Financial Services Regulatory Authority, IFSRA, and the Minister for Finance does not get involved in the day to day activities of the financial regulator.
I am satisfied that the legislative provisions which have been put in place provide a sound basis for financial regulation in Ireland. Moreover, I am satisfied that this code of legislation is being adequately applied and enforced by IFSRA. The Central Bank and Financial Services Authority of Ireland Acts 2003 and 2004 represent a radical restructuring of financial regulation in Ireland. The establishment of a single structure to take in work previously done by four separate bodies, the greater emphasis on consumer concerns, the enhancement of the regulator's powers, including administrative sanctions, enhanced provision for co-operation between the various authorities, the provision for establishment of a statutory financial services ombudsman scheme and of new consultative mechanisms for consumers and industry will contribute to the better regulation of the sector.
However, it is my intention to learn from the experience of the operation of IFSRA, and from various recent reports, so as to keep our legislative framework efficient and up to date. My Department has initiated a public consultation process with a view to consolidating, simplifying and updating our financial services legislation. My ongoing aim is to ensure that our legislation continues to meet the Government's consumer protection and stability objectives in a way that minimises the regulatory burden on industry and otherwise complies with our international obligations and the Government's better regulation agenda, promoting the development of a sector that is competitive both domestically and internationally and operating to high standards.
