Future IFSRA plans to address bank scandals

The Irish Financial Services Regulatory Authority (IFSRA) has published its strategic plan for 2005, promising to empower consumers by providing more and better information in a safe and fair financial market.

IFSRA's chief executive, Mr Liam O'Reilly, indicated that the regulator's future strategic planning would be influenced by issues arising from investigations into overcharging scandals at AIB and National Irish Bank.

A consultation paper on a new "fitness and probity" test to vet people working in senior industry positions will be issued in January. A common framework will then be implemented by June, when IFSRA also plans to have finalised new sanctions policies and procedures.

The implementation of the Central Bank and Financial Services Authority of Ireland Act 2004, which gives IFSRA the power to impose sanctions on financial services providers, will be a high priority for 2003, according to Mr O'Reilly.

Transparency and accountability will continue to be IFSRA's guiding principles, while the regulator will work to foster a culture of integrity, competence and ethical behaviour in the financial service providers it regulates, Mr O'Reilly said.

The registrar for credit unions, Mr Brendan Logue, is to undertake a review of the Credit Union Act 1997 and increase the scope of on-site inspections of credit unions.

IFSRA's consumer director, Ms Mary O'Dea, will issue harmonised codes of practice and new advertising rules for financial services providers in September.

A review of banking surcharges, such as unauthorised overdraft interest surcharges, will take place by October. It is intended that these charges will be regulated in the same way as standard banking fees.

The Irish Bankers' Federation (IBF) welcomed IFSRA's commitment to a "principles-based" approach to regulation and said it remained committed to working with the regulator.

A consultation paper on remuneration in the insurance sector will also be published next year and is expected to examine practices such as the receipt of override commissions.

The IFSRA consumer website, www.itsyourmoney.ie, will be enhanced with interactive tools by September, while the development of a financial education action plan should reach the pilot project stage by October.