Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

This section provides that the Central Bank may publish warning notices to the public where it reasonably believes a person is either providing a financial service without the requisite authorisation or falsely purporting to be a regulated financial service provider. The bank already has powers under the EC (Markets in Financial Instruments) Regulations 2007 and the Investor Intermediaries Act 1995 to publish warning notices alerting the public to investment firms operating without the appropriate authorisation.

One of the principal functions of the Central Bank is to protect the public interest, in particular, the interests of consumers of financial services, by monitoring and regulating the provision of those services within its jurisdiction. The regulatory regime established by law to enable the bank to carry out this important function requires that all persons or entities wishing to provide financial services must first become regulated financial service providers by applying to the bank for authorisation. The bank is then equipped with an array of investigative regulatory and enforcement powers to ensure these regulated financial service providers adhere to the requirements of financial services legislation. However, sometimes a person outside the regulatory remit of the Central Bank will engage in conduct that constitutes a contravention of financial services legislation and jeopardises the interests of consumers of financial services. One example would be a moneylender acting without the requisite authorisation. To properly carry out its functions, the Central Bank needs power to restrain such conduct by unregulated entities. The bank has already been given power to restrain breaches of the law by unregulated entities in a limited number of areas. For example, section 36(j) of the Central Bank Act 1997, on which this section is based, allows the bank to apply to court for an order restraining any person from breaching the law relating to bureaux de change and money transmissions businesses. The purpose of this section is to give the bank a general power to apply to court for an injunction to restrain a contravention of financial services legislation, regardless of who is the perpetrator of that contravention.

The United Kingdom has a similar provision in section 380 of its Financial Services and Markets Act 2000 which enables the financial services authority to apply to court for an injunction to restrain any person from contravening a provision of its financial services legislation. Subsection (1) of this section provides that the Central Bank may apply to court for an order restraining conduct that constitutes a contravention of financial services legislation, regardless of whether the person engaging in that conduct is a regulated financial services provider. Subsection (2) provides that the court may make an order compelling a person to do an act that he is she is required to do by or under a provision of financial services legislation. Subsection (3) provides that the bank may apply ex parte for an order under this section and that the court may grant the order if it considers it necessary to do so. Subsection (4) provides that the court may grant an order under this section, subject to such terms as it thinks fit. Subsection (5) provides that the court may grant an interim order pending the final determination of an application under this section. For example, the bank may apply ex parte for an order under this section. The court might be unwilling to give a final order without first giving the person affected an opportunity to state his or her case. This subsection is designed to allow the court to grant an interim order pending the final determination of the matter on notice to the person affected. Subsection (6) provides that the court may discharge or vary an order made under this section.

I think that covers the point raised by the Deputy. The matter is within the hands of the court which can grant interim or absolute orders, either of which it may discharge.