Regulator is determined to succeed

FINANCIAL Services Regulator chief executive Liam O’Reilly made it clear yesterday that the new authority meant to get off on the right foot.

He said the need to row in behind the consumer was a major concern.

And he accepted the authority was a response by the State to the increasing perception that the Central Bank had failed to give the consumer the level of protection they deserved.

“This is a major departure. For the first time a single organisation is responsible for regulation of all financial services.”

And he stressed that mandate will allow the body to regulate and monitor risk and solvency across all institutions and to protect consumers no matter where they purchase their financial products. He pointed out also that, under the new laws, the authority can link up with the Revenue Commissioners in the interests of safeguarding the financial services sector and the consumer from players in the market putting their money at risk for whatever reason.

There will be no safe havens under this new body, Mr O’Reilly made clear.

Among the first issues to be tackled are the commissions operating across the sector.

Hidden penalties in financial transactions and how the new PRSAs will be sold are all issues that will all be tackled vigorously under the new regime, he said.

Where necessary, information will be traded with the Revenue Commissioners and other state agencies in the interest of protecting the good name of the sector and safeguarding the interests of the consumer.

Stressing there was no conflict between the dual mandate of one side and the other of the financial services industry.

“Our long term goal is to have satisfied consumers in a safe attractive environment of high reputation,” he said. During questions and answers, Mr O’Reilly stressed the separate functions of the Pensions Board and the Financial Services Regulator.

If consumers have a query about the way they have been sold a PRSA, the Financial Services Regulator is the place to take that complaint, he said.

It is a matter for the Pensions Board to ensure the product, but all monitoring of the sellers rests with the new authority, he said.

In time, under a second Bill the ground will be laid for co-ordinating the entire complaints process under an Ombudsman, but it is also envisaged that, where it is necessary, individual sectors may still be allocated a single figure head, who will then be charged with looking after their specific complaints.