Dáil Éireann - Volume 666 - 06 November, 2008

Written Answers. - Financial Services Regulation.

[389] Deputy Róisín Shortall asked the Minister for Finance his views on the Financial Regulator’s recent decision to fine a company and an individual (details supplied) €3.2 million and €0.2 million respectively in relation to breaches of regulatory requirements with respect to the failure to notify the Financial Regulator prior to providing substantial loans to related companies for the purpose of purchasing equity stakes in a bank; when he was advised that this investigation was in progress; if his attention was drawn to the fact that this investigation was underway on 30 September 2008; if this investigation materially affected his decision to launch the credit institutions financial support scheme; and if he will make a statement on the matter. [38831/08]

  Deputy Brian Lenihan: The Central Bank Act, 1942 as amended provides the Financial Regulator with the power to administer sanctions in respect of prescribed contraventions by regulated financial service providers and persons concerned in the management of regulated financial service providers.

The Financial Regulator is the competent independent statutory authority in the State for the supervision of compliance and has the statutory power to impose sanctions on regulated firms where they contravene these requirements, as well as on persons concerned in the management of those firms who participated in such contraventions. The legislation expressly provides to the Financial Regulator the power to enter into a settlement agreement with the parties to resolve such a matter.