There are two legislative provisions to regulate financial intermediaries: the Insurance Act, 1989, which regulates the activities of insurance brokers, and the Investment Intermediaries Act, 1995, which regulates the activities of investment intermediaries or investment brokers.
It is generally accepted that the Insurance Act has worked reasonably well. The Investment Intermediaries Act, which was only introduced in mid-1995, allowed my Department to take quick and effective action in relation to the activities of Mr. Tony Taylor and, in particular, to put in place mechanisms to protect existing investors' funds. Prior to the introduction of the Act last year no such action would have been possible. I made a detailed statement on this to the House recently when I appeared before the Select Committee on Enterprise and Economic Strategy which is investigating the affairs of the Taylor group of companies.
My Department's authorised officers are continuing their investigations into the activities at the Taylor group of companies. Clearly, the report of the authorised officers, when it becomes available, will provide important lessons for us in regard to the regulation of investment intermediaries. In addition, I have ordered a general review of the Investment Intermediaries Act, 1995 to see what improvements should or could be made to the approach to and method of regulation, and in particular with regard to self-regulation.
The authorised officers' report and my Department's review will provide a clear guide for improving the regulation and supervision of both investment and insurance intermediaries.