THE FINANCIAL Regulator has promised a “far more intrusive” supervision of banks as well as extra resources to protect consumers.
The regulator also repeated earlier admissions that it did too little too late to respond to the financial crisis and promised that consumer protection would not be ignored under the new unified Central Bank structure.
It was responding to a critical report by its own watchdog, published in yesterday’s Irish Times, which claimed that the regulator had failed consumers by not providing a safe and fair market.
The report by the regulator’s Consumer Consultative Panel, which is appointed by the Minister for Justice, said the regulator had been too lenient with big financial institutions, carried out investigations which were of “no use” to consumers and failed to understand many of the sectors and products it was regulating.
Yesterday in a statement the regulator said it was committed to doing “whatever is necessary” to support financial stability and in turn protect consumers. “We continue to intensify and reorganise our approach to regulation and a far more intrusive form of supervision is in place with additional resources applied.”
The regulator also defended its actions in examining what went wrong, saying it had published an analysis of the financial crisis, detailing the actions taken to mitigate the risk. In its analysis, the authority outlined that the actions taken were considered to be proportionate but said it was clear the actions taken were insufficient and not taken early enough. The regulator promised to respond in detail to the report in due course.
Separately, the Financial Services Ombudsman, Joe Meade, called yesterday for a lifting of the confidentiality applied by the regulator to much of its work. Mr Meade said the regulator should have to prepare detailed audits of financial institutions and make these available to the public.
Mr Meade said he had been provided with reports of public interest but under terms of strict confidentiality. He said there was a need for a proper flow of information and for “the left hand to know what the right hand is doing”. He also joined calls for an investigation into the causes of the financial collapse in Ireland and said he would give evidence if called.
It was essential we found out what caused “the greatest financial disaster that ever struck this country” so that the same things never happened again, he said.
The country did not need another tribunal costing vast amounts of money or an investigation that tied up the financial system for years. A High Court judge could carry out a tightly-focused inquiry instead, he suggested.
Mr Meade, who retires this month, echoed the concerns expressed in the panel report about the transfer of financial information and education functions of the regulator to the National Consumer Agency.
Mr Meade said financial products were not like “televisions or phones” and skilled staff were needed to advise on them.