Dáil Éireann Debate, Tuesday - 10 October 2017
56. Deputy Clare Daly asked the Minister for Finance if the Office of the Director of Corporate Enforcement or the Financial Regulator has carried out investigations into a company (details supplied) regarding the way in which it has operated and dealt with persons who gave it funds for investment; and if he will make a statement on the matter. [42376/17]
Amharc ar fhreagraThe Office of the Director of Corporate Enforcement is under the aegis of the Minister for Business, Enterprise and Innovation. Furthermore, section 949(3) of the Companies Act 2014 provides that the Director of Corporate Enforcement shall be independent in the performance of his statutory functions. Therefore, I, as Minister for Finance, have no direct function in such matters.
I am informed by the Central Bank that based on the information as supplied by the Deputy, it would appear that this firm is not regulated by the Central Bank of Ireland.
The Central Bank publishes Registers of all the firms and individuals authorised by the Central Bank on its website. Under EU law, some firms may be allowed to operate in Ireland without being authorised by the Central Bank of Ireland. Such firms are regulated by their home state, although the Central Bank of Ireland is responsible for some regulation in the Consumer Protection area, known as conduct of business rules. These firms may not appear on the Registers. Furthermore, not all financial service providers require regulation by the Central Bank (for example, credit intermediaries authorised by the Competition and Consumer Protection Commission).
It is a criminal offence for an unauthorised firm/person to provide financial services in Ireland that would require an authorisation under the relevant legislation which the Central Bank is the responsible body for enforcing.
Consumers should be aware, that if they deal with a firm/person who is not authorised, they will not have access to the following protections:
- Investor compensation schemes;
- The services of the Financial Services Ombudsman;
- The Directors and senior management of unauthorised firms are not subject to the Fitness and Probity Regime;
- Unauthorised firms are not subject to prudential requirements such as regulatory capital requirements or safeguarding of client funds.
Under the Central Bank (Supervision and Enforcement) Act 2013, the Central Bank has the authority to publish warning notices naming persons or firms who are providing financial services without the appropriate authorisation or who are holding themselves out to be a regulated financial service provider where they do not have the appropriate authorisation to provide financial services. The Central Bank also publishes a list of unauthorised firms in respect of whom warning notices have been published.
Any person wishing to contact the Central Bank with information regarding unauthorised firms/persons may telephone (01) 224 4000. This telephone line is also available to the public to check whether a firm is authorised.
