Jim O'Keeffe (Cork South West, Fine Gael)
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Question 12: To ask the Minister for Finance the steps which are being taken to amend the Stock Exchange Act 1995 to protect investors, in particular those whose shares are held electronically, in the event of the collapse of a stockbroking firm so holding such shares; and if he will make a statement on the matter. [12366/06]

Jim O'Keeffe (Cork South West, Fine Gael)
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Question 92: To ask the Minister for Finance if a report or statement of affairs from the receiver will be made available to the investors arising from the process of the receivership of a collapsed firm (details supplied); if not, the reason therefor; and if he will make a statement on the matter. [12367/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 12 and 92 together.

A number of legislative and regulatory measures to increase the protection of investors, including those who hold shares electronically, are currently being considered by an expert working group established under the aegis of my Department. The membership of the working group is composed of industry and consumer representatives as well as the Financial Regulator, the Central Bank and my Department. I am advised that the report of the group is currently being finalised. The recommendations of the group will be carefully considered in order to ensure that the interests of investors are appropriately safeguarded and a competitive environment for firms providing investment services is maintained.

I understand that the Irish Stock Exchange, ISE, which is represented on the group, advocates moving towards full dematerialisation, involving the replacement of share certificates and transfer forms with electronic records. Apart from keeping pace with industry practice around the world, electronic certification of shareholdings would also reduce the opportunity for fraud. Electronically held shares can reduce uncertainties relating to the ownership of client assets and consequently contribute to speedier distributions following a collapse. If shares were to be held electronically, and clients to receive independent verification of their assets, this would go a long way towards avoiding a situation where the assets in the possession of the firm do not match those that should be held for clients. Delays in the receivership process could be reduced where holdings are electronically certificated. The Deputy may wish to note that the legal principle established by the High Court was that there did not appear to be any basis in law or in logic for making a distinction between electronic and certificated shares as to the manner in which they should be treated in the event of the collapse of a stockbroking firm.

A dematerialisation implementation group has been established by the ISE comprising representatives of all relevant securities markets, regulatory and governmental authorities including the Department of Enterprise, Trade and Employment within whose remit dematerialisation falls. It would obviously be essential that any migration to full dematerialisation is effectively underpinned by any changes required for investor protection in the legislative or regulatory framework.

In relation to the Deputy's question concerning access to information from the receiver, I should point out that a receiver is a court appointed official. The court oversees the receivership process and the receiver reports to the court at the conclusion of the receivership. In the particular case, the receiver applied to the court on a number of occasions for direction in relation to matters associated with his administration of the receivership.

It is open to any investor to request the court to be put on notice of the timing of the receiver's final report and to ask the court for a copy of the report. It would be a matter for the court to decide whether, or not, to accede to any investor's request and-or to require that a receiver's report be published more widely.