Dáil Éireann Debate, Tuesday - 24 July 2018
255. Deputy Michael McGrath asked the Minister for Finance his plans to mount a legal case against the Maltese regulatory authorities in respect of the collapse of a company (details supplied); and if he will make a statement on the matter. [33863/18]
Amharc ar fhreagraSetanta Insurance was placed into liquidation by the Malta Financial Services Authority in April 2014. As it was a Maltese incorporated company, the liquidation is being carried out under Maltese law.
In relation to the question of whether there are any plans to take a legal case against the Maltese regulatory authorities, it should be noted that Malta is a common law jurisdiction. The legal unit of the Department of Finance is of the view that an action against the Maltese regulators would likely be difficult. However, in order to establish this definitively it would be necessary to seek legal advice from Maltese lawyers as well as to seek to establish further information in respect of any failures in their legal duties on the part of the regulator which might give rise to such a legal case. The Department of Finance’s legal unit does not consider that there is sufficient likelihood of a successful action being brought to justify the costs which would be incurred in seeking such advice and information.
Regarding any proposal to take such legal action, it should also be noted that Setanta availed of the ‘passporting’ provisions of the European Union “Freedom of Services” rules in order to sell insurance business in Ireland. This allows an insurance company prudentially regulated in any Member State to operate throughout the Union and is an important aspect of Ireland’s obligations as an EU Member State. While there have been cases, such as the liquidations of Enterprise and Setanta, which have caused difficulties, Ireland has also positively benefited from these EU rules through, for example, the building up of our large life insurance sector.
