Tony Killeen (Clare, Fianna Fail)

The second group of amendments amends the Central Bank Act 1942 to make the enforcement of the unfair commercial practices provisions of the Bill a statutory function of the bank and the consumer director of the financial regulator in the case of regulated financial service providers.

The amendments provide the regulator with the necessary powers of investigation regarding breaches of the provisions of the Bill. The amendments include particular provisions specifying the financial regulator as a body with whom the agency shall enter into a co-operation agreement as provided for in section 21 of the Bill, as well as allowing for the disclosure of certain information between the regulator and the agency.

The Central Bank Act 1942 is further amended to assign to the financial regulator parallel functions given to the agency under the European Communities (Unfair Terms in Consumer Contracts) Regulations 1995. The effect of this amendment will enable the financial regulator to apply to the High Court for orders prohibiting the use of terms in contracts for financial services which the court adjudges to be unfair. Specific provision is also made in the amendments to ensure that there is no duplication of activities on the part of the financial regulator and the agency and further to prevent any person being subject to enforcement action by more than one party to a co-operation agreement.

These amendments were introduced having regard to the financial regulator's particular expertise in regulating financial service providers and also take cognisance of the specific statutory responsibility given to the financial regulator to promote consumers' interests in the financial services sector. The amendments set out the basis on which the agency and the financial regulator shall work together to ensure that consumers of financial services can enjoy the important protections provided for in the Bill.