Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 125: To ask the Minister for Finance the progress made towards developing legislation to reform the regulation of financial services here; when such legislation will be published; and if he will make a statement on the matter. [24408/09]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 126: To ask the Minister for Finance if he still proposes, as announced in February 2009, to establish a consumer protection agency in the financial services sector separate from the new proposed Central Bank Commission; the reason for such a decision; if his attention has been drawn to the concerns expressed regarding this proposal; and if he will make a statement on the matter. [24409/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 125 and 126 together.

I announced on 18 June that the Government had agreed a range of reforms of the structures for regulation of financial services in Ireland. The key change is the establishment of a single fully integrated regulatory institution, the Central Bank of Ireland Commission. The Central Bank Commission will be chaired by the Governor of the Central Bank and will be responsible for both the supervision of individual firms and the stability of the financial system generally. The approach taken in these reforms mirrors arrangements proposed at EU level and will ensure a cohesive approach between the two critical elements of effective financial regulation.

The new Commission will include expert, highly experienced and authoritative non-executive members. This new structure will replace the current board structure of the Central Bank and the Financial Services Regulatory Authority to achieve the highest performance standards for the new organisation. These reforms will underpin a more effective and efficient financial services regulatory system aligned with best international practice.

Two top-level posts will be established within the Central Bank of Ireland as ex-officio members of the Commission. A Head of Financial Supervision will report to the Commission on the regulatory and supervisory functions and objectives of the new structure while a Head of Central Banking will report on the performance of central banking functions (other than those that relate to the independent role of the Governor under the EC Treaty and Eurosystem and ECB structure). The reforms will be supported by a significant expansion of regulatory capacity within the new structure with the appointment of substantial additional staff with the skills, experience and market-based expertise to meet the objectives of the new structures including in relation to the regulation of the international financial services sector.

The consumer information and education role, currently carried out within the Consumer Directorate in the Financial Regulator will be reassigned to the National Consumer Agency (NCA). The NCA is being amalgamated with the Competition Authority. The functions to be merged in the new body are highly complementary and share a common goal of enhancing consumer welfare.