Ireland's new single financial regulator opened for business yesterday, promising to put the consumer at the heart of the system for the first time.The Irish Financial Services Regulatory Authority (IFSRA) will take over supervision of the financial services sector, including building societies, insurance companies, credit unions and stockbrokers.
Until now, various parts of the sector have been regulated separately by the Central Bank, the Department of Enterprise, Trade and Employment, the Office of the Director of Consumer Affairs and the Registrar of Friendly Societies.
IFSRA will also be responsible for consumer protection and consumer education. It will also be able to share information with the Revenue and the Garda and will work with the Competition Authority to ensure choice for consumers.
"This is the one-stop shop we have been seeking for consumers," said the Tánaiste, Ms Harney.
"There is now one place for their queries. No more confusion, no more split roles, no more falling between stools."
The Minister for Finance, Mr McCreevy, said that although IFSRA was set up under the auspices of the Central Bank, "it will have all the powers and independence necessary for the successful regulation of the Irish financial sector".
IFSRA chairman Mr Brian Patterson said: "Good regulation is good for consumers and it's good for the industry." He said the authority would be a "passionate proponent" of the public interest.
He defended the composition of the authority's board, which has been criticised in certain quarters as lacking a consumer champion.
"This is not meant to be a representative board but a public interest board," he said.
The new authority, which will be responsible for regulating more than 4,000 entities and has a budget in excess of €20 million per annum, is still finalising its funding arrangements.
"The Act points to industry funding," said Mr Patterson. He said the authority hoped to issue an industry consultation paper on the issue in a couple of months.
IFSRA chief executive Mr Liam O'Reilly summed up the authority's role as "regulating institutions on a day-to-day basis to ensure they are sound while ensuring that consumers get a fair deal".
Mr O'Reilly also presented the findings of initial consumer research undertaken for IFSRA, which shows that the major issues in the mind of the public are insurance costs (featuring in 71 per cent of replies), bank charges (58 per cent) and interest rates on personal loans (47 per cent).
Almost 30 per cent of the 1,000 people surveyed said they were not confident about making complaints on financial issues while 70 per cent did not know where to lodge a complaint.
IFSRA has opened a lo-call line - 1890 777 777 - to handle all consumer queries on financial matters.
