Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Senator Barrett. On Second Stage we had an opportunity to discuss the issues relating to Setanta and the importance of ensuring we have enhanced monitoring through the market intelligence on freedom of services firms in the Central Bank. I was pleased to be able to assure the House that since the issues arose with Setanta, the Central Bank has enhanced its market intelligence on freedom of services firms and will maintain regular contact with the regulators of those insurance firms about which it has concerns. The Central Bank will also conduct more on-site inspections of intermediaries and manage general agencies which distribute products underwritten by freedom of services insurers. In addition to this, we will have the underlying framework regarding the insurance industry which will be strengthened with the introduction of Solvency II from 1 January next year.

With regard to the amendment, my colleague, the Minister for Finance, is responsible for the development of the legal framework governing financial regulation, and the Central Bank of Ireland as the regulator is responsible for prudential supervision of insurance companies. This is the division of roles and responsibilities. Under the Central Bank Act 1942, as amended, the Central Bank of Ireland is accountable to the Oireachtas in the exercise of its regulatory functions and is required to prepare an annual statement for the Oireachtas relating to its performance in regulating financial services.Further, I would highlight that section 33AM of the Central Bank Act of 1942 provides for certain staff of the Central Bank, including the head of financial regulation, to appear before a joint committee of the Oireachtas responsible for examining matters relating to the bank and provide that committee with such information that it requires, subject to certain conditions. This provision was introduced under the Central Bank Reform Act of 2010 and is quite a useful and important provision available to Members of the Oireachtas in terms of obtaining information and providing a degree of scrutiny. The head of financial regulation at the Central Bank can be called upon to appear before a joint committee of the Oireachtas, presumably the Joint Committee on Finance, Public Expenditure and Reform.

The Central Bank also publishes insurance statistics annually. This includes a large amount of data relevant to the insurance sector operating in Ireland, including the life, non-life and re-insurance sectors. This information is a summary of the life assurance and non-life-insurance returns made to the Central Bank pursuant to the European Communities (Life Assurance) Framework Regulations of 1994 and the European Communities (Non-Life Insurance Accounts) Regulations of 1995. The most recent report was published on 30 September regarding business written during the year ended 31 December 2014. Therefore, for the reasons I have outlined in terms of the current provisions already available to the Oireachtas and its committees and the information being provided by the Central Bank, I am not in a position to accept the amendment.