The Irish Financial Services Regulatory Authority (IFSRA) will seek to match the funding it receives from financial institutions to the regulatory burden they present, according to the new body's chief executive, Mr Liam O'Reilly.

Speaking at the Finance Dublin conference, Mr O'Reilly stressed IFSRA's intention to establish an equitable funding system.

"The funding burden should be generally proportionate to the regulatory risk," said Mr O'Reilly. "In so far as possible, we will not be seeking any cross-subsidisation of funding among the different industry sectors as this would be fundamentally unfair," he added.

IFSRA, which is due to be established around the middle of this year, will be funded by the firms it regulates from the start of 2004. The authority will commence a consultation with industry on the funding issue shortly.

Mr O'Reilly said good regulation was "money well spent" because it enhanced the reputation of the Republic's financial services industry.

"We are putting together a new system of regulation that will place a minimum cost on the industry but will enhance consumer protection," he said.