Dermot Ahern (Louth, Fianna Fail)

The proposed amendment would have the effect of inserting the term "insolvency practitioner" in the definition of "professional service provider" and also in the list of designated persons in section 25. The primary purpose of the Bill is to transpose the requirements of the third EU directive which does not require the designation of insolvency practitioners, although this does not prevent us from going further in designating other groups. However, we should first be satisfied that such a designation is appropriate and required.

It is important to consider whether the obligations the Bill imposes which cover a wide range of issues are relevant and appropriate to the activities of particular groups. For instance, the question arises as to whether the obligations arising in the provisions of Chapter 3 dealing with customer due diligence which require identification and verification of customers and the record keeping obligations in Chapter 6 are applicable to a group such as insolvency practitioners. Generally, the various classes of designated persons specified in the Bill are involved in providing some service for customers. It is possible that professionals involved in dealing with insolvency matters could become aware of instances of illegality, including money laundering, which may be relevant to include in regard to obligations in respect of suspicious transaction reporting. However, insolvency and related issues are complex. It is important, therefore, that the inclusion of such groups is not decided on without detailed consideration and analysis, including of the relevance of certain activities and obligations. In this respect, it is important to bear in mind that the legislation contains provisions that enable the Minister to designate further groups. Section 25 which lists designated persons provides in subsection 1(j) that other persons can be included, for example, any other person of a prescribed class. Subsection (7) provides that the Minister may prescribe a class of persons for the purposes of that subsection, subject to conditions.

During the drafting of the legislation we examined whether we could extend the definition, but it was decided against it on balance because it was not clear to what extent and how appropriate it would be to apply all of the obligations imposed by the Bill to a certain group. The Senator mentioned my reference to amateur insolvency practitioners, a number of whom do not have qualifications. They do this work because they have been involved in a few cases. We decided it would be better to see how matters progressed. I can make regulations to designate further groups under the existing provisions.