The British Financial Services Authority is expected to be the model for the proposed new Irish super-regulator.

The new regulator, which is expected to be given the go-ahead by Cabinet today, will bring together the variety of different financial regulators in Ireland.

It is expected to include the supervision areas of the Central Bank, the Department of Enterprise, Trade and Employment, the Office of the Director of Consumer Affairs, the Office of the Register of Friendly Societies and a variety of trade bodies such as the Irish Brokers Association.

However, the details have not yet been worked out, although a broad plan drawn by a working group of the Department of Finance and Department of Enterprise has laid down the basic framework.

The next step will be to bring together a working group including representatives from the Central Bank, civil servants, banks, building societies, investment managers, insurance companies, stockbrokers and consumers.

Detailed legislation will then be drawn up and it is expected that the new regulator could be up and running by the end of next year.

The Tanaiste Ms Harney and the Minister for Finance, Mr McCreevy, are determined to be seen to act following the latest revelations of financial misconduct in the banking industry.

The move is likely to meet some resistance from the various supervisory bodies, some of whom have jealously guarded their regulatory positions. In the UK, there is still bickering about the accountability of the FSA to both the Treasury and the industry itself, with the unit trust industry the latest group to question the FSA's accountability.

The new regulator is unlikely to actually regulate tax matters per se but, as a guardian of the consumer interest, would be far more likely to be involved in subsequent investigations than the Central Bank has been.

In an interview last week with The Irish Times, the chairman of the FSA in the UK, Mr Howard Davies, said that if a similar problem to AIB's arose, the agency would look at whether it revealed other problems. This could be faulty reporting of people at the top, or possible faulty management controls or even whether there could be individuals who are not "fit and proper" to work in the industry.

The British regulator was set up following public outcry over the Barings crisis, the collapse of BCCI and the pensions misselling scandals.

The Labour government concluded that government itself should not actually be a regulator. Departments are about policy and legislation, while the regulation should be done by agencies with the people at the top personally accountable.

All individuals working within the British industry are personally registered with the regulator, and that is likely to also be a feature of the Irish system.

The FSA is a super regulator for all financial services industries, banks, building societies, insurance companies, fund management operations, intermediaries, stockbrokers and pension companies.

It has nearly 2,000 employees and a budget of about £180 million sterling (£200 million), paid for by the industry.

Set up in 1997, the UK Financial Services Authority, will ensure that companies and individuals are complying with legislation. It has the power to investigate and fine any offending institutions.

The board is made up by a chairman, the deputy chairman of the Bank of England, and three executive directors. Another 10 positions are reserved for industry practitioners and public interest representatives.

The primary purpose of the FSA is to ensure that the institutions are looking after the consumer at all times.