Richard Bruton (Dublin North Central, Fine Gael)

I presume the Tánaiste's argument is that he is awaiting European legislation before regulating people who deal in securitised instruments of one sort or another that may be subject to questionable ratings. Should people running hedge funds be authorised under some of the proposed elements, namely, probity, competence and adequate levels of experience and skill? While the products might not be regulated or supervised and while we may be waiting for Europe and our colleagues to make a decision on regulating complex instruments, should we ensure people in the business of packaging or repackaging various instruments for resale or in the business of finding people to take them are supervised by some of theseelements?

The regulation envisaged relates to probity, adequate skill levels among staff, the requirement to provide information and the conduct of business, but is there a prudential oversight? As businesses will be under the credit control, their suitability must be tested, but how does the regulation in question compare to the regulation of a deposit-taking financial institution, what has been left out and why? I would like to see the checklist of what will and will not apply so I might understand the reasoning behind the obligations imposed or not imposed on non-deposit institutions or required of banks.

We should not revisit this matter in some years time. As this Bill has been introduced as a resubmit to committee, there has not been an opportunity for the Opposition and certainly me to avail of external expertise in considering these issues. I will take many of the provisions on faith and we are dealing with the Bill rapidly. Will the Minister expand further on the form of regulation, what he believes is important and vice versa?

It is natural that there are transitional arrangements, but has the Tánaiste assessed how quickly the various new authorisation requirements can be rolled out under these arrangements? Has planning been started to ensure there is no hiatus in respect of the institutions during the transitional period? I am conscious of time.

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