Regulator ‘to blame for financial turmoil’

THE failure of the Financial Regulator to ensure sound financial services is to blame for homeowners being in negative equity, shareholders losing out and pension funds diving, according to a consumer watchdog.

The hard-hitting report of the Government-appointed Consultative Consumer Panel calls for an explanation from the Financial Regulator of what went wrong with the regulatory system and what needs to change from its perspective. The panel also said it would like to see a report from an independent authority on what went wrong with Irish financial regulation and why.

It said the regulator had failed in its primary purpose to help consumers make informed financial decisions in a safe and fair market, and to foster sound dynamic financial institutions in Ireland. The report also warned that the institutional reforms announced so far of the financial services sector and how it is regulated will not be sufficient to avert a similar crisis in the future.