Brian Lenihan Jnr (Dublin West, Fianna Fail)

I accept that Senator Cummins raises a very interesting and difficult question. However, it is not as simple or straightforward as the Senator understandably outlined. The amendment seeks to require the regulatory authority to publicly justify a decision not to investigate or to discontinue an investigation of an alleged contravention. It addresses a concern expressed also during the debate in the other House that the regulatory authority will not use its new powers of sanction in a robust fashion for fear of damaging the reputation of a financial institution.

The key arguments against what the Senator has proposed are that the Government's policy aim is to make institutions comply with their obligations, not to punish or publicly reprimand them for contravention. The whole thrust of this legislation is to encourage a much greater culture of compliance.