Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Senator has returned to his main criticism of the Bill, which relates to the combination of the prudential regulation function and the consumer protection function in one authority. The amendment proposes to change section 5A of the principal Act – the Central Bank Act 1942 – which provides for the general functions and powers of the bank. It is important to note that the responsibility for consumer protection in the Bill is actually delegated from the bank to the regulatory authority.

The legislation relating to the regulatory authority provides a variety of measures to deal with the quality of financial services to consumers and accountability in regard to consumer protection. In a sense, these functions are invested in the regulatory authority under the Bill. The regulatory authority, for example, is charged with responsibility for taking action to increase the awareness among members of the public of available financial services and the cost to consumers, risks and benefits associated with the provision of those services under the new section 33C(4). This includes reference to the quality of financial services to customers, which is in the spirit of the amendment tabled by the Senator.