Chris Andrews (Dublin South East, Fianna Fail)

I thank the Ceann Comhairle for the opportunity to speak in support of the Markets in Financial Instruments and Miscellaneous Provisions Bill 2007. It is not the most exciting of titles or Bills but it is a very important Bill. While I do not have a technical background in financial services I am speaking on the Bill because I recognise the importance of the financial services industry in Ireland and the benefit that European legislation has brought in terms of stability and competitiveness in the market.

Recent events, referred to by the previous speaker, such as the run on Northern Rock and the faltering of the US sub-prime market, have reminded us all of the importance of good regulation. It is important we do not have regulation for the sake of it but regulation which benefits the consumer and the economy on the whole. The previous speaker mentioned vigilance and the Markets in Financial Instruments and Miscellaneous Provisions Bill 2007 is about continuing vigilance. As markets change it is important that legislation changes to meet the various challenges.

This Bill has not come out of a puff of air but is part of a much broader picture. In 1999 the financial services action plan was created at European level and I am glad to say Irish representatives played a very active role in its creation. The action plan aims to create a single market for financial services. The prospectus directive and market abuse directives, which came into force in July 2005, have already brought great benefit to the Irish financial services industry. The transparency directive was introduced earlier this year and the Markets in Financial Instruments Directive (MiFID) 2004/39/EC is due to come into force across the EU on 1 November.

What sounds like jargon dreamt up by bureaucrats and legislators will actually serve to make our economy more robust and competitive, less vulnerable to fraud and more attractive to foreign investors. The final step in the process is to introduce the primary legislation to ensure the MiFID can function effectively within the Irish system. I am happy to say that Ireland was one of the first member states to transpose the directive, in February this year. I am also happy that we are preparing for the deadline of 1 November by applying the requisite provisions.

The Bill stipulates that a person guilty of an offence under section 5 will be liable on conviction to a fine not exceeding €10 million, or imprisonment for a term not exceeding ten years, or both. These measures have involved consultation with the relevant stakeholders and aim to ensure the directive will be implemented in the most effective way possible.

A further provision affecting Irish law is the repeal of the Stock Exchange Act 1995. I congratulate the Minister for streamlining and, where appropriate, retiring legislation to enable the legal system to run more smoothly and cost-effectively. The financial services industry is a large employer in Dublin South-East and I very much welcome this Bill, which will serve to keep the cogs of the financial machine turning. It will bring transparency and accountability where it is needed.

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