Richard Bruton
Ceist:71 Mr. R. Bruton asked the Minister for Finance the number of people working in the regulatory body IFSRA; and the estimated annual cost of their operation. [31922/03]
Written Answers. - Departmental Bodies.
Richard Bruton
Ceist:72 Mr. R. Bruton asked the Minister for Finance if he has proposals to ensure that the cost of financial regulation would not bear more heavily on smaller financial intermediaries; and if proposals emerging from IFSRA regarding charges for the cost of regulation take this into account. [31923/03]
I propose to take Questions Nos. 71 and 72 together.
As the Deputy will be aware, IFSRA has just published a consultation paper regarding the funding of its operations. I understand a copy of this paper has been circulated by IFSRA to each Deputy. As the Deputy will note from the executive summary of the paper, IFSRA estimates that the total cost of regulation in 2004 will be in the region of €39 million at current prices. This figure includes some start-up costs associated with setting up the new organisation structure. Once approved, IFSRA's statement of the estimates of income and expenditure for 2004 will be laid before each House of the Oireachtas.
IFSRA informs me that as at 30 November 2003, there were 274 whole time equivalent staff currently directly employed by it. The support services – personnel, IT, etc. – for these staff are provided by the Central Bank and the Financial Services Authority of Ireland. Some further recruitment is planned by IFSRA as it has taken on new functions.
With regard to the impact of the cost of regulation on certain sectors of the financial services industry, I draw the Deputy's attention to paragraphs 3.4 and 3.5 of the consultation paper. The extent of cost recovery by IFSRA will take into account, inter alia, the impact of the levy on competitiveness, the ability to pay of certain sectors, the inclusion or otherwise of certain costs of the regulator and the implications for the industry of equitable treatment of different financial services providers. Views are being sought by IFSRA on these matters during the consultation process. When the consultation process has been completed, IFSRA will be making a submission to me regarding the proposed levies to be charged to the industry in 2004. I will consider any issues arising in that context.