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

An industry consultation process took place on this provision. I will give the Deputy a short summary to give him an insight into the thinking behind the measure. What emerged from the process were concerns that the Central Bank might take action on the basis of interim or incomplete reports, to which it can have access under section 12. There was also the need for prior consultation with a regulated financial services provider to confirm the factual accuracy of any information contained in a report before the Central Bank would take any action arising from a report and the need for clarity around how and when the power to require a report would be used by the bank.

In response to the consultation process a number of amendments are being proposed to the Bill which enhance the focus and balance of the provision without compromising its effectiveness. These include an amendment to section 15 which will enable the Central Bank to sit down with the reviewer to discuss the findings of the report and any other issue that might be relevant and a further amendment to provide that the bank may issue guidelines setting out clearly how and under what circumstances it would make use of these powers. I am open to suggestions as to how the provision might be improved to ensure adequate detachment and objectivity. However, I would like to preserve the core design of this part where it is the responsibility of the financial service provider to nominate the reviewer for Central Bank approval and the contractual relationship remains between the reviewer and the reviewee, albeit subject to Central Bank oversight. That gives the Deputy an insight into the official thinking behind this provision.