The Government advisory committee on the establishment of a single financial regulator has agreed its view on the relationship the new body should have with the Central Bank.

However there was no comment from the group last night on the nature of that decision. During a meeting yesterday the group chose between two options: an independent regulator with only a minimal relationship with the Central Bank; and the splitting of the Central Bank into two agencies, one being the new regulator and the other operating the rest of the bank's functions.

The group is due to hold further meetings. It is to report to the Tanaiste, Ms Harney, and the Minister for Finance, Mr McCreevy.