Watchdog calls for powers to name rogue traders
The new consumer watchdog for the financial sector demanded the power to name and shame unscrupulous investment firms today.
Bill Prasifka, who took over the post of Financial Services Ombudsman earlier this year, said legal rules barring him from naming rogue traders was inconsistent with the aims of the office.
“We are here to promote the integrity of the financial services industry in the eyes of the public,” he said.
“It is difficult to understand how this can be achieved if our public profile can be characterised as the publicising of industry wrongdoing while simultaneously shielding the wrongdoers from public accountability.”
He added: “If certain firms are operating unscrupulously, why can’t the public at least know who they are?”
Mr Prasifka, the former Aviation Regulator, suggested that the strict rules on what can and cannot be published would reinforce public perceptions that financial regulation in Ireland was ineffective.
The watchdog said his office should be an early warning system for failings in the sector.
In an address to the Insurance Institute of Ireland at the RDS in Dublin, Mr Prasifka outlined reforms needed to improve the public perception and workings of his office.
But he said naming and shaming should stop short of forcing his office to publish all rulings in full as it would be time consuming and delay inquiries.
He also said the identity of complainants should be protected and possibly censored in final reports.
The ombudsman called for the power to name firms, the product sold or service provided and the decision reached by his office.
“We are not a regulatory authority and not here to penalise wrongdoing – that is the remit of the Financial Regulator and other state bodies with enforcement powers,” Mr Prasifka said.
“However, we should be in a position to make disclosures where there is a compelling public interest to do so.”
