Written answers

Wednesday, 22 November 2006

Department of Finance

Financial Services Regulation

9:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 110: To ask the Minister for Finance when the new common framework for testing the fitness of directors and senior managers of financial services published by the Financial Regulator, will come into effect; his views on whether existing directors and managers will not be subject to this test; if there are immediate plans to extend this framework to moneylending and mortgage intermediaries; and if he will make a statement on the matter. [39234/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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My Department has been advised by the Financial Regulator that the new common framework for testing the fitness and probity of directors and senior managers of financial services firms will apply from 1 January 2007. Previously, the Financial Regulator assessed the fitness and probity of directors and managers against broadly similar standards but with different sectoral processes. Existing directors or managers will not have to complete the new Individual Questionnaire since they have already been subject to the previous sector-specific tests, but will be subject to the test for any new positions.

The Financial Regulator has also advised that moneylenders and mortgage intermediaries are already subject to regular fitness and probity tests as part of their authorisation procedure and because the existing test takes account of the specificities of the sector they work in it is not planned to extend the new common framework to them.

Directors and managers of financial service firms have an important role to play in ensuring that their firms treat their customers fairly and are run in compliance with applicable financial services legislation. The new common fit and proper requirements help prove that this role is discharged by persons who are competent and of good standing.

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