Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Bill provides that the consumer director may issue codes or impose requirements on financial services providers, but only in the name of the authority and with the approval of the other members of the authority. The amendment proposed by Senator Higgins is that the Director of Consumer Affairs be only required to consult with the other members of the authority in respect of issuing codes or imposing requirements.

The codes and requirements will be issued to protect the consumer. It is important that there be complete agreement from the regulatory authority, in whose name they will be issued. If some institution is in breach of a code of conduct or requirement, the regulatory authority will have to deal with it. Thus, although the Director of Consumer Affairs is a member of the authority, it is fitting that codes or requirements issued by him or her be in the name of the authority. I am, therefore, of the view that the provision, as drafted, should remain and I am unable to accept the amendment.

The McDowell group recommended that the regulatory authority should have the power to impose penalties. The question of providing this power to the regulatory authority is being considered in the context of the No. 2 Bill. As the imposition of penalties will be linked to these codes of practice, it is only appropriate that the codes be issued in the name of the authority and not in that of the consumer director because the power to impose penalties, as recommended by the McDowell report, will be vested in the authority.

Amendment, by leave, withdrawn.