Joe Grogan

1
September 2004
New Regulatory ChallengesFacing the Industry
Joe Grogan CEO, Marsh Ireland Ltd.
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Why Regulation?

• Consumer Protection
• Prudential Supervision
• Financial Stability
• IFSRA Strategic Plan - 7 Goals
• Regulation is about Culture

Consumer Welfare
3
Whats New?

• IFSRA established as single regulator (1st May
  2003)
• Central Bank and Financial Services Authority
  Bill 2003 (IFSRA No. 2 Bill)
• Insurance Mediation Directive January 2005
• Competition Authority Report Summer 2004
• Funding of IFSRA
• Parallel Regulation

- Companies Acts 1963-2003 - Criminal Justice
(Theft Fraud Offences) Act 2001 - Company Law
Enforcement Act 2001 - Indictable Offences
4
and
Dont Forget The Customer
5
IFSRA No. 2 Bill

• Signed into Law July 2004
• Power to Impose Sanctions - Companies and
  Directors
• Appointment of Financial Services Ombudsman
• Consumer Panels
• Industry Consultative Panels
• New Reporting and Auditing Obligations
• Compliance Statements
• Relevant Obligations
• Materiality
• Obligations on Auditors

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So What Are The Challenges?

• Knowledge and Understanding of the Regulations -
  Education
• Relationship with the Regulator - Getting to
  Know You
• Cost
• Consolidation within the Business
• AA v MAI and Competency Requirements
• Variety of Parallel and Complimentary Activities
• Rules Based v Competency Based

Real - Compliance Committee -
Funding Opportunity Cost
7
and
Dont Forget The Customer
and
Stay In Business
and
Give Return To Shareholders
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So... Whats The Problem?

• Rules Based - FSA Experience
• Are we Creating a Bureaucracy of Fear?
• Customer Protection v Customer Welfare
• Cost - Its Got To Be Paid For
• Resourcing - Companies and Regulator
• Customers Need to be Differentiated

9
Remember
We Are In The Service Business
so
Dont Forget The Customer
10
Any Questions
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