The Tánaiste and Minister for Finance have this afternoon announced the creation of a new structure for financial services regulation in Ireland.
Two bodies, one for carrying out ECB-related functions and another for financial services, will operate under the Central Bank of Ireland and Financial Services Authority.
The authority responsible for regulation of both banking and insurance and consumer protection will be known as the Irish Financial Services Regulatory Authority.
The structure will also include an Irish monetary authority which will carry out administrative functions required within the European Systems of Central Banks.
Making the announcement, the Tanaiste, Ms Harney and the Minister for Finance Mr McCreevy said: "the Government is determined that the detailed arrangements put forward in the McDowell report for the regulation of the financial services sector will be implemented.
"the structure approved by Government will ensure that regulation reflects changes in the marketplace and reflects concern that consumers should be assured that they are receiving an internationally competitive and high quality and fair service from the industry.
The Irish Association of Investment Managers (IAIM) welcomed the establishment of the new authority. Mr Martin Nolan chairman of the IAIM said the Government's decision ended a long period of uncertainty in the industry.
The new body should build on the positive aspects of the existing system while emphasising consumer protection and awareness, Mr Nolan added.