Brian Cowen (Laois-Offaly, Fianna Fail)

I thank Deputies for their contributions regarding the motion and the proposed amendments. It is important that I bring forward legislation to regulate the sub-prime lending sector at the earliest opportunity. However, it is not possible to legislate for every possible interaction between a customer and a financial institution. Indeed, attempting to do so could stifle innovation and competition in the market to the detriment of consumers. Instead, the Central Bank Acts and other Acts empower the Financial Regulator to prescribe codes of practice for regulated financial service providers.

The consumer protection code sets out both general principles and detailed rules on the conduct of business by financial institutions. The principles require that they act fairly, honestly and professionally in the best interest of customers. Detailed rules cover matters such as advertising, identifying customer needs and providing information. The Financial Regulator can investigate breaches of the code and impose sanctions under Part III of the Central Bank Act 1942. The process of authorisation means that retail credit and home reversion firms will become regulated financial service providers for the purposes of the code.

The Bill and its amendments can be discussed further on Committee Stage in recognition of the requirement to activate some of its provisions from 1 November to coincide with the coming into effect of the markets in financial instruments directive.

I can arrange for Deputy Bruton to be provided with a copy of each of the reports to which the amendments concerning Ordnance Survey Ireland refer, namely, the report to the Joint Committee on Finance and the Public Service on disclosure under the terms of the Freedom of Information Act and the value-for-money and policy review of Ordnance Survey Ireland.

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