Vol. 428 No. 2
84 Mr. Yates asked the Minister for Finance if he will clarify the Government's position in relation to new structures or authorities to oversee the Dublin Stock Exchange; whether the Dublin and London link will be broken; and if so, when.
On 24 May 1991 the Government announced that I had decided to introduce legislation to change and update the regulation and supervision of stockbrokers and the Irish Stock Exchange. This legislation is intended to replace existing legislation dating, in the main, from 1799 which is inadequate for supervisory purposes.
It was necessary to update the supervisory arrangements for stockbrokers and the Irish Stock Exchange if the terms of the Investment Services Directive were to be observed. This Directive has been in discussion for a number of years but it is likely to be finally adopted during the first half of this year and legislative measures to transpose the Directive must be in place by 1 July 1995.
The Government decided that the Central Bank of Ireland should be appointed the competent authority in respect of stockbrokers and the Irish Stock Exchange.
As I told the Stock Exchange Conference on the new regulatory environment which was held on March 10th for quoted companies and investors, I hope to be able to introduce legislation to give effect to this decision by the summer.
The Irish Stock Exchange and the UK regional exchanges merged, in 1973, with the London Stock Exchange, to form what later became the International Stock Exchange of the United Kingdom and the Republic of Ireland Ltd. It is likely that this entity will divide into Irish and UK Exchanges, probably in 1994. Even after such a division, substantial commerical links will continue between the Irish and London exchanges, on terms currently being discussed by the exchange authorities.
It is desirable that the new legislative arrangements for supervision be in place before the two organisations adopt separate legal structures.
