The Irish Brokers Association (IBA) has welcomed the proposed establishment of a single financial regulatory authority and has said that all existing regulators in the financial services industry should relinquish their roles in its favour.

In a submission to the implementation group established by the Government to consider the issue, the association recommends the appointment of a main board to the authority with a number of divisional boards.

These would cover areas such as banking and credit, investments, insurance and investor compensation and would be made up of financial services sector and consumer representatives.

"We strongly believe that a partnership approach must be adopted between all interests within the financial services sector in the establishment of a single regulatory authority," said the IBA president, Mr Kieran Kelly. "Nevertheless, once established this body will need to be entirely independent of sectoral interests."

The Government-appointed committee, chaired by barrister Mr Michael McDowell, is currently looking at the issue of how a single regulator for the sector will operate. The nine-member group was due to report to the Tanaiste and the Minister for Finance by the end of the month but given the complexity of the issue, this deadline is now unlikely to be met.

If a partnership approach were adopted, this would greatly assist the efficient operation of the authority which would be perceived by the financial services sector to be run in a cost efficient manner, the IBA says. "In these circumstances, we believe that the sector as a whole would be amenable to funding and resourcing the authority," Mr Kelly said.

The IBA also said the issue should be tackled immediately and a long-term answer found. Resources should not be wasted on temporary solutions.

The role and functions of any new single regulatory authority should be the prudential supervision of all product producers together with the development and regulation of conduct and business rules. The authority, which would be directly accountable to the Oireachtas, should also be responsible for the supervision of all distributors and intermediaries of financial services products, the IBA said.

The IBA represents and regulates insurance brokers in Ireland and has nearly 600 members.