Vol. 536 No. 4
52 Mr. Penrose asked the Minister for Finance when he expects the new structures for financial services regulation will be operational; when he expects to appoint the members of the interim board for the IFRSA; and if he will make a statement on the matter. [14240/01]
The Government announced on 20 February its intention to establish the Irish Financial Services Regulatory Authority within the new structure of the Central Bank of Ireland and Financial Services Authority.
Planning for the implementation of that decision is well under way. At the end of March I appointed A&L Goodbody as legal advisers to assist me in the preparation of heads of legislation. They have been working with officials of my Department to review the very substantial body of legislation dealing with insurance and banking regulation which will be affected by the proposal.
Early in April, officials of my Department had an initial briefing session with the European Central Bank which proved very constructive. We will be consulting the ECB formally when the legislative proposals have been finalised. It is my intention to ensure that the proposals in their final form are fully consistent with the role of the ECB as laid down in its Statute.
I have also established a working group including officials from my Department, the Department of Enterprise, Trade and Employment and the Central Bank who are liaising in relation to the preparation of legislation and the transfer of functions. The Registrar of Friendly Societies and the Office of the Director of Consumer Affairs are also being consulted.
It is my current intention to bring a Memorandum to Government in June outlining the provisions which would be included in legislation to establish the IFSRA. A range of closely related proposals concerning the establishment of a statutory ombudsman scheme, consumer and industry consultative panels and dealing with other financial services regulation issues are being developed in parallel. These are an essential part of the overall package of measures to provide a renewed focus on the consumer issues arising in relation to financial services regulation. It is my intention that these changes would be provided for in a Bill which will be brought to Government as soon as they are ready.
The target date for the Irish Financial Services Regulatory Authority to open its doors is the beginning of 2002 and I would hope to be in a position to introduce legislation in the autumn session to provide for this. In order to facilitate that target, I intend, in consultation with the Tánaiste, to set up an interim board for the Irish Financial Services Regulatory Authority on a non-statutory basis in advance of its formal establishment.
