Brian Cowen (Laois-Offaly, Fianna Fail)

I am concerned about people giving publicity to suggesting there was some problem for the Irish regulatory regime. There was not. Yesterday, I answered this question by way of a parliamentary question put by Deputy Costello and my response explained the factual situation on that matter. The fact is that structured investment vehicles, SIVs, and conduits are not regulated. However, as a result of recent market turbulence the EU, ECOFIN, the European Economic and Financial Centre, EEFC, central banks and experts in the area are examining what lessons can be learned for the future and how we can ensure we have regulation where required. We are also trying to ensure we have functioning markets that are at the forefront of innovation and which will acquire business and ensure business is conducted. Ireland has been able to achieve that.

When and if an issue arises, this does not mean we should clamp down on everything on the basis of the Deputy's view that we had a near miss. We did not have a near miss. The financial framework of this country is strong and liquid if one listens to what the Central Bank governor has to say. I am glad we have an influential governor who is held in high esteem by the industry generally, here, internationally and within the corridors of the ECB.

It is not a question of being complacent, dismissive or conservative, but of facts. The last thing we want is to have fictional information in the public domain suggesting we are at risk. Of course, we are not immune from the turbulence which has taken place, but we are in a good position. If the Central Bank governor can state this, I should also be able to do so.

On the question of the regulatory impacts for the future, these are being considered in the proper and appropriate manner by those committees answerable to ECOFIN, the Eurogroup and within the European Central Bank area. When they have properly considered and taken into account all the issues and observed the subsidence of the turbulence and its long-term impact, lessons can be drawn therefrom. I am not prepared to suddenly overturn the regulatory regime we have on the basis of what happened in the past number of weeks. That would not be a responsible or sensible thing to do. It would not be sensible to do it prior to the full collaborative effort by people far more expert than I, from other countries and markets, who share the Eurogroup area with us. That is my position. It is not about Berlin, Boston, Bangkok or anywhere else. When a report is produced in mid-2008 by those looking at the area, that will be the time to draw conclusions. I will take the advice of these people who are far more expert than I and on whose advice I rely.

On the issue of fines, where there are breaches of Irish investment services law in interactions where people who want to get into the market provide the wrong information, those people will be subject to a fine of €10 million and-or ten years in prison. That seems to me a serious deterrent for anyone who wants to interact with the financial regulatory agencies here from providing wrong information. Such breaches will not be tolerated and there is a heavy legal sanction in terms of both criminal law and a financial fine for the individual concerned. If there are wider issues of fraud or if people are engaged in other such activities, I am sure there are other laws and sanctions that apply. However, with regard to the scope of this Bill, we are talking about a fine of €10 million and-or ten years in prison. If those in the market do not keep records for the minimal time period, do not appoint a tied agent under the proper arrangements, do not keep proper books or if they provide false information or advertise their services where they are not authorised to do so, it is a matter for the courts to decide the seriousness of the offence and what should apply on finding them guilty. Our advice on the comparative arrangements being made regarding the transposition of this directive is that we are in line with international practice.

See this speech in context