Written answers

Tuesday, 26 February 2008

Department of Finance

Financial Services Regulation

9:00 pm

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
Link to this: Individually | In context

Question 65: To ask the Tánaiste and Minister for Finance if he or his officials have received and studied the special report of the Comptroller and Auditor General into the Financial Regulator of May 2007; his views on the findings of the report; the discussions that have taken place with the Financial Regulator arising from the report; and if he will make a statement on the matter. [7716/08]

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

The report of the Comptroller and Auditor General to which the Deputy refers was submitted to me by the Comptroller and Auditor General in June 2007 and laid by me before Dáil Eireann. This examination looked at all the areas of activity of the Financial Regulator since its establishment. It focused in particular on:

how the Financial Regulator sets standards and provides guidance to financial service providers, particularly in relation to promulgation of EU single market measures

the operational measures undertaken by the Financial Regulator to monitor compliance by financial service providers with standards

how the Financial Regulator co-operates with other regulators to efficiently and effectively monitor cross-border financial service providers how the Financial Regulator protects and informs the users of financial services in Ireland

the costs of regulation.

The report presents a favourable and positive picture of the financial services regulatory environment in Ireland. It recognises the significant changes in the market and regulatory environment that have impacted on the operation of the Financial Regulator since it was established in 2003 and the organisational developments introduced within the Financial Regulator to respond to required changes. The report includes many positive findings including:

The Financial Regulator has generally been prompt in issuing rules and guidance for financial services providers

In developing standards, regulatory policies and administrative procedures, the Financial Regulator systematically consults with stakeholders and publishes related documentation on its website.

Since its establishment, the Financial Regulator has devoted considerable effort to developing a formal risk-rating model, and significant progress in achieving risk-based supervision has been made.

The Financial Regulator has been developing its capacity to assess the relative costs and benefits of new regulation where it has discretion in how legislation is to be implemented.

The Value for Money examination also highlighted a number of areas where the Financial Regulator could improve in efficiency. Many of these recommendations are being addressed as part of the Financial Regulators Strategic Plan for 2007-2009. These include a re-development of the Financial Regulator's corporate website and the enhanced use of electronic reporting and IT systems generally to support the operations of the Financial Regulator. The Financial Regulator constantly monitors progress against the objectives in the Strategic Plan and reports on that progress in its Annual Report, which is provided to me and laid before each House of the Oireachtas.

In addition, the Financial Regulator has advised me that it has commenced a systematic review of its business processes. This project will include a benchmarking of the Financial Regulator against comparator financial regulators and other similar businesses, domestically and abroad, and an assessment of areas of work currently undertaken by the Financial Regulator that might be suitable for outsourcing. The purpose of the project is to ensure that the Financial Regulator is delivering value for money in its business processes, is operating at relevant and appropriate best practice and that clearly defined and measurable benefits accrue from any changes proposed.

I welcome the report and findings of the C&AG's value for money report on the Financial Regulator. This report is an important part of the accountability framework within which the Financial Regulator operates, while maintaining its appropriate day to day independence.

Comments

No comments

Log in or join to post a public comment.