Brian Cowen (Laois-Offaly, Fianna Fail)

I discussed the amendment which I dealt with in my capacity as Minister with responsibility for the public service. I will bring the issue raised by Deputy O'Donnell to the Minister for Social and Family Affairs.

The amendment to which the Deputy refers inserts a new section 29A in the Central Bank Act 1997, which allows the Financial Regulator to exempt both individuals and categories of persons from the requirement to be authorised where this does not pose any real risk to consumers or any real regulatory concerns. Circumstances in which such an exemption might be given are lending of very large sums of money to sophisticated borrowers; transactions related to wholesale financial services transactions which are irrelevant to consumers; and lending which is only carried out for public or charitable purposes on favourable terms.

The Central Bank can impose conditions on an exemption and revoke an exemption if these conditions are not followed or where circumstances make the exemption no longer appropriate. While exemptions and revocations are to be published in Iris Oifigiúil, in the event that they are not published the exemptions or revocations will stand.

The legislation also provides that the requirement not to carry out a regulated business without an authorisation does not apply to persons granted exemptions from authorisation under this legislation provided the person does not carry on any kind of regulated business other than that to which the exemption relates and complies with all conditions under which the exemption was granted. This is the reason the amendment has been proposed.

See this speech in context