Dara Calleary (Mayo, Fianna Fail)

As currently worded, section 69(4) of the automatic enrolment Act requires that all subcontractors, including non-financial service contractors of an investment management provider, IMP, should be regulated financial services providers. In practice, IMPs, like all other businesses, use subcontractors to provide a wide range of services as we just discussed including IT and logistics, etc. Moreover, even some contractors who are engaged in financial services that would be widely defined, including accountancy and advisory services, are not material to the investment management contract. They are not contemplated in the Central Bank of Ireland regulations. In addition, the IMP itself is a prime contractor and a regulated entity responsible for the full performance of the contract in line with the regulatory requirements. It is important to avoid a situation where an IMP might argue that the governing Act enables it to contract out this liability to a subcontractor. The proposed amendment retains the position that the IMP itself should be a regulated financial services provider within the meaning of the Central Bank of Ireland Act. It provides as a safeguard that the authority may at its discretion also require that some selected subcontractors will likewise be regulated. The Government amendment to the automatic enrolment Act is necessary for the proper operation of this section of the Act. The amendment to delete this cannot be accepted.