THE new Central Bank Commission must be given the powers to investigate and sanction financial institutions who indulge in anti-competitive behaviour, according to a new report.
The sub-committee of the Consumer Consultative Panel at the Financial Regulator published the report which outlines concerns about the plight of the consumer.
It said that principles-based regulation failed the consumer during the economic meltdown.
The panel said that it was concerned the announcement that Bank of Scotland (Ireland) would leave the country.
This was being coupled with other banks and financial institutions consolidating, means that that there will be less competition in Ireland in the future.
The consumer was now being forgotten in the new changes being made to the financial regulatory structure, the report said.
And there is the potential for the remaining players to abuse their dominant position as well as less choice for the consumer, the report stated.
It also recommends stricter product approval and wider promotion of the Consumer Protection Code. The Commission was created earlier this year as part of a radical reform of the system.
The Taoiseach said the commission would incorporate both the responsibilities of the Central Bank and the supervision and regulatory functions of the Financial Regulator.