A failure by TDs and senators to properly scrutinise the activities of financial services regulators has left "a major gap" in accountability in the sector, a meeting of business leaders and politicians heard yesterday.
Mr Jonathan Westrup, a former head of bonds and business development at NCB Stockbrokers, said the Oireachtas and its committees did not take seriously their role in overseeing the work of regulators such as the Irish Financial Services Regulatory Authority (IFSRA), and its parent body, the Central Bank.
He cited the example of the Finance and Public Service Committee, which had yet to request the attendance of either the chief executive of the IFSRA, Mr Liam O'Reilly, or the governor of the Central Bank, Mr John Hurley, who was now in office for almost two years.
"The committee's level of research is scanty and the actual committee process is haphazard, with only a few TDs knowledgeable and interested," said Mr Westrup.
"It's hard not to conclude that the Irish political system is just not interested in such work because TDs feel that they gain no political advantage from such activity and so there is little political will. The fact remains that the Oireachtas has given regulators great powers but has largely chosen to leave them to their own devices, leaving a major gap in the accountability structure."
Mr O'Reilly told the Association of Chartered Certified Accountants (ACCA) centenary debate that the IFSRA's consumer director had appeared before two Oireachtas committees with which "we maintain regular contact" and "are happy to appear before when invited to do so".
ACCA Ireland president Mr Anthony Harbison said it was "critical" that consumers and other stakeholders, the intended beneficiaries of regulation, had a greater role in the processes.
"We have advised our finance professionals to expect future annual general meetings to involve them facing more questions about the figures. It is now up to stakeholders to use any new regulations to ensure that their best interests are being met."
