Fitness and Probity Regime

Dáil Éireann Debate, Tuesday - 23 October 2012

Tuesday, 23 October 2012

Questions (134)

Gerry Adams

Question:

134. Deputy Gerry Adams asked the Minister for Finance if he will confirm whether as per the Central Bank of Ireland Guidance on Fitness and Probity Standards 2011 the Central Bank of Ireland assured itself that persons in a company (details supplied) performing the pre-approval controlled functions are compliant with the Fitness and Probity standards; if he will detail if he is concerned about the number of contracts being awarded by State owned financial institutions to the company where two of its six shareholders were working in Bank of Scotland (Ireland) during its reckless lending into the Irish property market and whose Chief Executive was a board member at bank of Scotland (Ireland) during this period; and if he will make a statement on the matter. [45779/12]

Written answers

Minister for Finance

I have been informed by the Central Bank of Ireland that the company referred to in the Deputy’s question is not a regulated financial services provider and therefore neither the company nor its employees are subject to the Central Bank of Ireland’s Fitness and Probity regime. The standards do not apply to persons performing functions with respect to a regulated financial service provider where that function is carried on by another person (e.g outsourced) and all of the following conditions are satisfied: there is in place a written agreement between the regulated financial service provider and the entity to which the function is outsourced, for the carrying on of that function; and the entity to which the function is outsourced is a financial service provider who is regulated either by the Central Bank of Ireland or another financial regulator in another jurisdiction. Otherwise, the standards apply. The awarding of any contracts by the pillar Banks is a day-to-day operational matter for the institutions concerned.