Vol. 571 No. 4
236 Mr. R. Bruton asked the Minister for Finance the charges currently being made by the Central Bank in respect of the financial institutions which it regulates; the principles underpinning the setting of charges; and the way in which regulatory charges here compare with competing countries which have sought to attract financial services to locate within their countries. [21953/03]
As the Deputy will be aware, a new financial services regulator, called the Irish Financial Services Regulatory Authority, IFSRA, was established on 1 May 2003. Prior to the establishment of the new financial services regulator, fees were paid to the Department of Enterprise, Trade and Employment in respect of insurance undertakings, and to the Registrar of Friendly Societies in respect of credit unions and friendly societies. These charges relate to the cost of regulation by the supervisory authority, and are, with effect from 1 May 2003, being paid to the IFSRA.
As the Deputy will be aware, the McDowell group recommended that the cost of regulation should be met by the financial services industry. I indicated during the passage of the Central Bank and Financial Services Authority of Ireland Bill through Committee Stage in the Dáil that the IFSRA would engage in a consultation process with the industry on the question of the levies to be charged. I understand from the IFSRA that the draft consultation paper is at an advanced stage, and that it will be commencing the formal process of consultation in the near future.
