Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Question 126: To ask the Tánaiste and Minister for Finance if his attention has been drawn to the recent criticism from the consumer panel of the Irish Financial Regulatory Authority to provide details of overcharging by financial institutions; if he will raise these criticisms with the authority; if he will initiate and review the regulator's operation; and if he will make a statement on the matter. [17158/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am aware of the report of the Consultative Consumer Panel referred to by the Deputy and the recommendation that more analysis of overcharging by financial institutions should be provided by the Financial Regulator.

My Department has been advised by the Financial Regulator that it has implemented a set of General Principles to deal with issues of charging, which were published in the Financial Regulator's 2004 Annual Report. Where the Financial Regulator considers that it is in the public interest, for example, where there are significant difficulties in the repayment process or where the amounts concerned are large, the Financial Regulator may decide that it is appropriate to put a notice in the national media. The Financial Regulator does not see it as necessary or appropriate to publicise every overcharging issue, bearing in mind that the firm will have informed the affected customers, reimbursed and compensated customers and made the appropriate changes to the control environment. The Financial Regulator advised the Consumer Panel of this approach in responding to the Panel's recommendations.

My Department has also been informed by the Financial Regulator that an update on charging issues will be provided in its 2006 Annual Report, which will be published next month. The Financial Regulator will continue to monitor reimbursement programmes as part of the ongoing supervisory function with affected firms and ensure that reimbursement programmes are completed in as timely a manner as possible through monitoring and enforcement of the Consumer Protection Code.

Ensuring strong and effective public accountability is a key element of the legislation establishing the Financial Regulator. In addition to the annual reports of the Consultative Panels, the major accountability mechanisms include:

the Annual Report of the Financial Regulator is laid before each House of the Oireachtas

the Minister for Finance can determine the form of the Financial Regulator's Strategic Plan which is also laid before each House of the Oireachtas

there is a requirement for the Chair, Chief Executive Officer and Consumer Director of the Financial Regulator to appear before the Joint Committee of the Oireachtas that is responsible for examining matters relating to the Financial Regulator and to provide the Committee with whatever information it requires

the Annual Accounts of the Financial Regulator are audited by the C&AG; a Value For Money Examination of the Financial Regulator has recently been finalised by the C&AG and will be published shortly.

Public accountability of the Financial Regulator is also achieved through the extensive consultation undertaken on significant regulatory issues with all the main stakeholders. A February 2007 IMF study of 32 countries that overhauled their regulatory institutions over recent years concluded that the Irish system and structure of financial regulation was first in terms of accountability arrangements as compared with other international single financial regulators.

As recommended in the Final Report of the High Level Interdepartmental Committee on the recommendations contained in the Consumer Strategy Group Report my Department will commence a review of the consumer protection role of the Financial Regulator next year. In view of the extensive accountability arrangements which I have outlined, I have no plans for any further review of the Financial Regulator's operations.