asked the Minister for Finance if, in view of the serious financial collapse of various finance and investment companies during the past year, he will now introduce emergency legislation to ensure that all companies accepting money for deposit and/or investment are subject to the same legislative criteria that exist for the associated banks and building societies; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Finance and Investment Companies.
10.
I do not consider that the situation calls for emergency legislation.
The statutory provisions for the regulation of businesses taking deposits or other repayable moneys from the public are being reviewed in my Department in the context of the preparation of a new Central Bank Bill. I have no function in regard to other financial institutions such as brokerages and investment companies who provide insurance and other financial services of one kind or another.
I would point out that the vast majority of deposit-taking institutions in this country are regulated and are generally conducted in a responsible manner. The public, however, should be on their guard in dealing with little-known enterprises and should examine their claims and reputation very carefully before dealing with them.
Is the Minister telling the House that he has no responsibility with regard to registered limited companies who have been accepting deposits from the Irish public over the past number of years? Will he agree that several of these companies have gone into liquidation and receivership over the past year? Can he tell the House who has responsibility for these companies?
To the extent that I have responsibility for these areas, they are matters which will be covered by a new Central Bank Bill. To the extent that a number of these companies do not fall under my direct control in terms of regulation, the majority of those referred to by the Deputy would fall under the aegis of the Minister for Industry, Trade, Commerce and Tourism.
Would the Minister agree that very strict criteria are laid down for the banks, the associated banks and the building societies, which are not imposed on registered limited companies which have gone into receivership or liquidation over the past number of years? Will the Minister assure the House that he will co-operate with the Minister for Industry, Trade, Commerce and Tourism in introducing legislation to protect the Irish public and to protect Irish people investing money at a time when we need investment?
The regulations which exist and which are administered respectively by myself and the Minister for Industry, Trade, Commerce and Tourism apply to all companies involved in these activities. We have had the good fortune to have had very rare instances of companies which fell down on their responsibilities or otherwise got into difficult situations. To the extent that the problem can be met by improving the provisions of the Central Bank Act to cover the operations of companies covered by those regulations, that will be done. To the extent that any co-ordination between my own Department and the Department of Industry, Trade, Commerce and Tourism can help to increase the security of Irish depositors and Irish people lodging money with companies like this, the Deputy can take it that that will be done.