New bank regulation legislation will provide powers to the Financial Regulator to ensure the fitness and probity of nominees to key positions within financial service providers, the Minister for Finance told the Dáil today.
In a speech on the Central Bank Reform Bill today, Brian Lenihan said: "We have seen as late as yesterday, the devastating effects of irresponsible and incompetent behaviour at senior levels in financial institutions and we must ensure, as a matter of urgency that the powers exist to prevent such behaviour in the future.
"These new powers for the Bank will help restore confidence in the management of financial institutions both domestically and in international markets," Mr Lenihan said.
Under the Bill's "fitness and probity regime", the regulator would have, among other powers, the ability to suspend an individual if it was suspected that he or she is not a fit and proper person, and powers to apply to the High Court for an order prohibiting a person from performing a function,
"Wide-ranging reform is urgently required. We need a system where the overarching objective of the stability of the financial system informs directly the supervision of individual firms while at the same time safeguarding the interests of consumers and investors," Mr Lenihan told the House.
"The Central Bank Reform Bill delivers on that clear and simple objective. And it is important that it is enacted as soon as possible."
The Bill wold also give National Consumer Agency the power to impose levies on financial services providers to fund the functions assigned to it.