asked the Minister for Trade, Commerce and Tourism the steps he proposes to take to regulate the position of intermediaries and brokers concerned with insurances and related business.

The Deputy is no doubt aware that the question of the statutory regulation of intermediaries and brokers concerned with insurance and related business has been undergoing detailed consideration in my Department for some considerable time. As yet no convincing case for such regulation has been made, but I understand that further proposals, especially in the area of related business, may be submitted by the interests concerned.

In order to be effective such control would have to be comprehensive and restrictive and could involve substantial public service expenditure. The benefits to be gained could be somewhat illusory, since persons who are prepared to act contrary to the law and the interests of their clients will not necessarily be deterred by statutory provisions.

Is it not true that any individual can set himself up as an insurance broker by simply putting up a plate outside his place of business without any regulations governing his activities, or any investigation into his financial solvency or his qualifications and so on which might fit him to be an insurance broker? Does the Minister regard that as a satisfactory way of having business continue?

While I accept the legitimate concern of the Deputy about operations in this area, it should be pointed out that in the United Kingdom a proposal along the lines which the Deputy would seem to imply has been in operation, was found totally unsatisfactory. I agree that it may be desirable to have a very close look at this area with a view to bringing in measures which would be effective.

Would the Minister accept that a system of self-regulation similar to that operating on the Continent should be encouraged by his Department?

Yes. In a number of other areas where self-regulation has been introduced, it has proved successful. It is not an approach which I would dismiss.

A final supplementary question, please, from Deputy Flynn.

Is it not the situation that, when one does business with an insurance broker in the first instance, it is the broker who is responsible for funds, that there is no contract between the individual and the insurance company with which he would like to do business? Consequently, if the broker goes bankrupt, the contributor in the first instance is at the loss. That is an unsatisfactory situation which should be rectified. Will the Minister look into the matter to see if he can bring about a system of registration whereby the funds of ordinary customers will not be lost?

As I said in reply to an earlier supplementary question by the Deputy, it is important not only that we take action but that any action which we do take would be effective action to clear up any irregularities which may be taking place in this area.