Brian Cowen (Laois-Offaly, Fianna Fail)

I am here to reply to questions laid down that relate to the International Financial Services Centre. If the Deputy has any other questions to table regarding any other matters he is entitled to do so.

The Financial Regulator has always operated within the framework of EU and domestic law in approving relevant enterprises and products in the IFSC and regulating their operation. Robust financial regulation is an essential element in maintaining the competitiveness of the economy and it contributes to the sustainability of the financial services centre. The regulator must evaluate innovations in the industry, in terms of both products and entities, effectively and efficiently with regard to timeliness, cost and clarity.

Over the years, the clearing house group has provided a forum in which financial regulation, in its broad sense of supporting a credible and reputable international financial services centre, has been affirmed repeatedly. The significance of regulation for international financial services has long been recognised. It is important to point out that the IFSC operates under the same regulation as other financial services centres in Europe, under European directives, etc. There is no difference. We are not different in any way. The supervisory regime that applies to practically all IFSC activities is based, ultimately, on EU regulatory directives. The same regulatory regime that applies to the financial sector elsewhere throughout the EU applies equally to the IFSC in this respect. These directives cover the full range of supervisory tools, including the authorisation of financial institutions, the application of regulatory rules and responses, enforcement, etc.

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