Legalize / Ireland / Act

Central Bank Act , 1942

Type Act

Publication 1942-11-04

Last updated 2026-02-10

State In force

Source Irish Statute Book

articles 304

Reform history JSON API

PART I. Preliminary and General.

1. Short title, collective citation, and construction.

1.—(1)This Act may be cited as the Central Bank Act, 1942.

(2)The Currency Acts, 1927 and 1930, and this Act may be cited together as the Currency and Central Bank Acts, 1927 to 1942.

(3)This Act shall be construed as one with the Currency Acts, 1927 and 1930.

(4)The expression “this Act” wherever it occurs in the Currency Act shall be construed and have effect as including the Currency (Amendment) Act, 1930 (No. 30 of 1930), and this present Act.

2. F1[Interpretation.

2.—(1) In this Act, unless the context otherwise requires—

F2[…]

"Appeals Tribunal" means the Irish Financial Services Appeals Tribunal established by section 57C;

F3[…]

F4["appointed member" or "appointed member of the Commission" means a member of the Commission referred to in section 18CA(1)(b);]

F5["associated entity" in relation to a financial service provider, means—

(a) a holding company of the financial service provider, or

(b) a subsidiary company of the financial service provider, or

(c) a company that is a subsidiary of a body corporate, if the financial service provider is also a subsidiary of the body, but neither company is a subsidiary of the other, or

(d) if a financial service provider is a company, any other body corporate that is not a subsidiary of the company but in respect of which the company is beneficially entitled to more than 20 per cent of the nominal value of either—

(i) the allotted share capital, or

(ii) the shares carrying voting rights (other than voting rights which arise only in specified circumstances) in that other body corporate,

(e) a partnership or joint venture in which the financial service provider has a financial interest;]

"approved stock exchange" means a stock exchange approved undersection 9 of the Stock Exchange Act 1995;

F6["Bank" means the Central Bank of Ireland;]

F7[…]

F8["Capital Requirements Regulation" means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013^22on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, as amended by –

(a) Commission Delegated Regulation (EU) 2015/62 of 10 October 2014^23amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the leverage ratio,

(b) Regulation (EU) 2016/1014 of the European Parliament and of the Council of 8 June 2016^24amending Regulation (EU) No 575/2013 as regards exemptions for commodity dealers,

(c) Commission Delegated Regulation (EU) 2017/2188 of 11 August 2017^25amending Regulation (EU) No 575/2013 of the European Parliament and of the Council as regards the waiver on own funds requirements for certain covered bonds,

(d) Regulation (EU) 2017/2395 of the European Parliament and of the Council of 12 December 2017^26amending Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9 on own funds and for the large exposures treatment of certain public sector exposures denominated in the domestic currency of any Member State,

(e) Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017^27amending Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms,

(f) Commission Delegated Regulation (EU) 2018/405 of 21 November 2017^28correcting certain language versions of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012,

(g) Regulation (EU) 2019/630 of the European Parliament and of the Council of 17 April 2019^29amending Regulation (EU) No 575/2013 as regards minimum loss coverage for non-performing exposures,

(h) Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019^30amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012,

(i) Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019^31on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014,

(j) Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020^32amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic,

(k) Commission Delegated Regulation (EU) 2021/424 of 17 December 2019^33amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the alternative standardised approach for market risk,

(l) Regulation (EU) 2021/558 of the European Parliament and of the Council of 31 March 2021^34amending Regulation (EU) No 575/2013 as regards adjustments to the securitisation framework to support the economic recovery in response to the COVID-19 crisis,

(m) Commission Implementing Regulation (EU) 2021/1043 of 24 June 2021^35on the extension of the transitional provisions related to own funds requirements for exposures to central counterparties set out in Regulation (EU) No 575/2013 of the European Parliament and of the Council,

(n) Regulation (EU) 2022/2036 of the European Parliament and of the Council of 19 October 2022^36amending Regulation (EU) No. 575/2013 and Directive 2014/59/EU as regards the prudential treatment of global systemically important institutions with a multiple-point-of entry resolution strategy and methods for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities,

(o) Regulation (EU) 2023/2869 of the European Parliament and of the Council of 13 December 2023^37amending certain Regulations as regards the establishment and functioning of the European single access point,

(p) Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024^38amending Regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor, and

(q) Commission Delegated Regulation (EU) 2024/2795 of 24 July 2024^39amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the date of application of the own funds requirements for market risk;]

"Central Bank Acts" means the Central Bank Acts 1942 to 1998 and includes any later Act that is to be construed as one with those or any of those Acts;

F9["Commission" means the Central Bank Commission;]

"consolidated bank note" has the same meaning as inthe Currency Act 1927;

F10[…]

"credit union" has the meaning given bythe Credit Union Act 1997;

"Currency Act 1927" means that Act as adapted in consequence of the Constitution;

F11["Deputy Financial Services and Pensions Ombudsman" means a person appointed undersection 8(1)(b) of the Financial Services and Pensions Ombudsman Act 2017 (No. 22 of 2017);]

F12[…]

F13["designated enactments" means, subject to subsection (2A), the enactments specified in Part 1 of Schedule 2 and the statutory instruments made under any of those enactments;]

"designated statutory instruments" means the statutory instruments specified in Part 2 of Schedule 2;

F14[…]

F15["ECB" means the European Central Bank;]

F5["EEA country" means a country that is a member of the European Economic Area;]

"employee", in relation to the Bank, includes theF16[Secretary of the Bank];

"enactment" includes any instrument made under an enactment;

"ESCB Statute" means the Statute of the European System of Central Banks and of the European Central Bank as set out in Protocol (No. 3) (annexed by the Treaty onEuropean Union done at Maastricht on February 1992) to the Rome Treaty;

F17["ex-officiomember" or "ex-officiomember of the Commission" means a member of the Commission referred to in section 18CA(1)(a);]

"financial futures and options exchange" has the meaning given by section 97 of the Central Bank Act 1989;

"financial services" include financial products;

F18["Financial Services and Pensions Ombudsman" means a person appointed undersection 8(1)(a) of the Financial Services and Pensions Ombudsman Act 2017 (No. 22 of 2017);]

F5[F19[…]

"financial service provider" means a person who carries on a business of providing one or more financial services;]

"financial year" means a period of 12 months ending on 31 December or, if the Minister, by order notified inIris Oifigiúil, has prescribed a different period for the purposes of this Act, that other period;

"function" includes duty;

F20["general fund" means the fund referred to in section 32F;]

"Governor" means the person holding office as the Governor of the Bank, and includes—

(a) any person appointed to act as Governor in accordance with section 22, and

(b) theF21[Head of Central Banking]when carrying out responsibilities of the Governor in accordance with section 22A;

F22["Head of Central Banking", "Head of Financial Regulation" and "Head of Function" shall be construed in accordance with section 23;]

F5["holding company" means a company that has one or more subsidiary companies;]

"law" includes the Rome Treaty and the ESCB Statute;

"local authority" means a local authority for the purposes ofthe Local Government Act 2001;

F23["member" or "member of the Commission" means an appointed member or anex-officiomember;]

"Minister" means the Minister for Finance;

F24["officer" means each Head of Function, the Secretary of the Bank and the Registrar of Credit Unions;]

F25[…]

"power" includes right and privilege;

F5["publication", in relation to a report or other document, includes publishing the report or document in an accessible form on an Internet website;]

"record" means any record of information, however compiled, recorded or stored, and includes—

(a) any book, a register and any other document containing information,and

(b) any disc, tape or other article from which information is capable ofbeing produced in any form capable of being reproduced visually or aurally;

F26["regulated financial service provider" means—

(a) a financial service provider whose business is subject to regulation by the Bank under this Act or under a designated enactment or a designated statutory instrument,

(b) a financial service provider whose business is subject to regulation by an authority that performs functions in an EEA country that are comparable to the functions performed by the Bank under this Act or under a designated enactment or designated statutory instrument, or

F15[(bb) a financial service provider whose business is subject to supervision by the ECB under a designatedF27[enactment;]]

(c)F28[…]]

"the regulations" means regulations made by the Minister under section 61A and in force under this Act;

F29[…]

F30["Rome Treaty" means the Treaty on the Functioning of the European Union done at Rome on 25 March 1957, as amended by the Treaty of Lisbon amending the Treaty on European Union and the Treaty establishing the European Community signed at Lisbon on 13 December 2007;]

F31["SRB" means the Single Resolution Board established under Article 42 of the SRM Regulation;

"SRM Regulation" means Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014^2establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010;]

F15["SSM Framework Regulation" means Regulation (EU) No. 468/2014 of the European Central Bank of 16 April 2014^4establishing the framework for co-operation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities;]

F15["SSM Regulation" means Council Regulation (EU) No. 1024/2013 of 15 October 2013^3conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions;]

F5["subsidiary company" has the meaning given by section 2A;

"voting rights" means—

(a) in relation to a company that has a share capital, the rights conferred on shareholders by virtue of their shares, or

(b) in relation to a company that does not have a share capital, the rights conferred on members,

to vote at general meetings of the company on all, or substantially all, matters.]

(2) In this Act—

(a) a reference to an enactment is, unless the context otherwise requires, a reference to that enactment as amended or extended by or under any subsequent enactment (including this Act), and

(b) a reference to a section is a reference to a section of this Act unless it is indicated that a reference to some other enactment is intended, and

(c) a reference to a subsection, paragraph or subparagraph is a reference to the subsection, paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended.

F32[(2A) The following shall be taken to be designated enactments:

(a) Commission Regulation (EC) No 1287/2006 of 10 August 2006^2;

(b) Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009^3;

(d) Commission Implementing Regulation (EU) No 447/2013 of 15 May 2013^5;

(e) Commission Implementing Regulation (EU) No 448/2013 of 15 May 2013^6;

F33[F34[(f) the Capital Requirements Regulation;]

(g) Commission Implementing Regulation (EU) No 1249/2012 of 19 December 2012^7;

(h) Commission Delegated Regulation (EU) No 152/2013 of 19 December 2012^8;

(i) Commission Delegated Regulation (EU) No 153/2013 of 19 December 2012^9;

F15[(j) Regulation (EU) 648/2012 of the European Parliament and of the Council of 4 July 2012^5;

(k) the SSM Regulation;

F35[(l) the SSM Framework Regulation;

(m) Regulation (EU) No 346/2013 of the European Parliament and of the Council of 17 April 2013^2;]]]]

F36[(n) Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013^2;]

F37[(o) Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)^32;

(p) Commission Implementing Regulation (EU) 2015/460 of 19 March 2015 laying down implementing technical standards with regard to the procedure concerning the approval of an internal model in accordance with Directive 2009/138/EC of the European Parliament and of the Council^33;

(q) Commission Implementing Regulation (EU) 2015/461 of 19 March 2015 laying down implementing technical standards with regard to the process to reach a joint decision on the application to use a group internal model in accordance with Directive 2009/138/EC of the European Parliament and of the Council^34;

(r) Commission Implementing Regulation (EU) 2015/462 of 19 March 2015 laying down implementing technical standards with regard to the procedures for supervisory approval to establish special purpose vehicles, for the co-operation and exchange of information between supervisory authorities regarding special purpose vehicles as well as to set out formats and templates for information to be reported by special purpose vehicles in accordance with Directive 2009/138/EC of the European Parliament and of the Council^35;

(s) Commission Implementing Regulation (EU) 2015/498 of 24 March 2015 laying down implementing technical standards with regard to the supervisory approval procedure to use undertaking-specific parameters in accordance with Directive 2009/138/EC of the European Parliament and of the Council^36;

(t) Commission Implementing Regulation (EU) 2015/499 of 24 March 2015 laying down implementing technical standards with regard to the procedures to be used for granting supervisory approval for the use of ancillary own-fund items in accordance with Directive 2009/138/EC of the European Parliament and of the Council^37;

F38[(u) Commission Implementing Regulation (EU) 2015/500 of 24 March 2015 laying down implementing technical standards with regard to the procedures to be followed for the supervisory approval of the application of a matching adjustment in accordance with Directive 2009/138/EC of the European Parliament and of the Council^37;]]

(v) Regulation (EU) No 2015/760 of the European Parliament and of the Council ofF39[29 April 2015;^3

F40[(va) Commission Delegated Regulation No 1125/2014 of 19 September 2014 supplementing Directive 2014/17/EU of the European Parliament and of the Council with regard to regulatory technical standards on the minimum monetary amount of the professional indemnity insurance or comparable guarantee to be held byF41[credit intermediaries^2;]]

F42[(w) the SRM Regulation;

(x) Regulation (EU) No. 260/2012 of the European Parliament and of the Council of 14 March 2012^8;

(y) Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC^9;

(z) Commission Delegated Regulation (EU) 2016/522 of 17 December 2015^10;

(aa) Commission Delegated Regulation (EU) 2016/908 of 26 February 2016^11;

(ab) Commission Delegated Regulation (EU) 2016/909 of 1 March 2016^12;

(ac) Commission Delegated Regulation (EU) 2016/957 of 9 March 2016^13;

(ad) Commission Delegated Regulation (EU) 2016/958 of 9 March 2016^14;

(ae) Commission Delegated Regulation (EU) 2016/523 of 10 March 2016^15;

(af) Commission Delegated Regulation (EU) 2016/347 of 10 March 2016^16;

(ag) Commission Delegated Regulation (EU) 2016/378 of 11 March 2016^17;

(ah) Commission Delegated Regulation (EU) 2016/959 of 17 May 2016^18;

(ai) Commission Delegated Regulation (EU) 2016/960 of 17 May 2016^19;

(aj) Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016^20;

F43[(ak) Commission Implementing Regulation (EU) 2016/1055 of 29 June 2016^3;]]

F44[(al) Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014^4.]

F45[(am) each of the acts adopted by an institution of the European Union specified in Schedule 9 (inserted by the European Union (Markets in Financial Instruments) (Amendment) Regulations 2017);]

F46[(an) Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023^5;]

F47[(ao) Regulation (EU) No 2015/2365 of the European Parliament and of the Council of 25 November 2015^4;]

F48[(ap) Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014^1;

(aq) Commission Delegated Regulation (EU) 2017/653 of 8 March 2017^3;]

F49[(ar) Regulation (EU) No. 2016/1011 of the European ParliamentF50[and of the Council of 8 June 2016;]^7

F51[(as) Commission Delegated Regulation (EU) 2017/2055 of 23 June 2017 supplementing Directive (EU) 2015/2366 of the European Parliament and of the Council with regard to regulatory technical standards for the cooperation and exchange of information between competent authorities relating to the exercise of the right of establishment and the freedom to provide services of paymentF52[institutions;]^36

F53[(at) each of the acts adopted by the European Commission specified inSchedule 10(inserted by the European Union (Detailed Technical Measures Designation) RegulationsF54[2018 and the European Union (Insurance Distribution) Regulations 2018)];]

F55[(au) Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 JuneF56[2017^2;]]

F57[(av) Regulation (EU) 2017/2402 of the European ParliamentF58[and of the Council of 12 December 2017;]^23

F59[(aw) Commission Delegated Regulation (EU) 2018/389 ofF60[of 27 November 2017;]^2

F61[(ax) Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017;^1

(ay) Commission Delegated Regulation (EU) 2019/979 of 14 March 2019;^5

(az) Commission Delegated Regulation (EU) 2019/980 of 14 MarchF62[2019;^6

F63[(ba) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 NovemberF64[2019^3;]]

F65[(bb) Council Regulation (EC) No. 1338/2001 of 28 June 2001^1laying down measures necessary for the protection of the euro against counterfeiting, as amended by Council Regulation (EC) No. 44/2009 of 18 December 2008^2;

(bc) Regulation (EU) No. 1210/2010 of the European Parliament and of the Council of 15 December 2010^3concerning authentication of euro coins and handling of euro coins unfit for circulation;

(bd) Decision ECB/2010/14 of the European Central Bank of 16 September 2010^4on the authenticity and fitness checking and recirculation of euro banknotes, as amended by Decision ECB/2012/19 of 7 September 2012^5and by Decision ECB/2019/2195 ofF66[5 December 2019^6;]]

F67[(be) Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 NovemberF68[2019^3;]]

F69[(bf) Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020^7;]

F69[(bg) Regulation (EU) No 2019/1238 of the European Parliament and Council of 20 June 2019^8;]

F69[(bh) Regulation (EU) 2021/23 of the European Parliament and of the Council of 16 December 2020^9;]

F70[(bi) Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023^3.]

F71[(bj) Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022^4;]

F72[(bk) Regulation (EU) 2023/2631 of the European Parliament and of the Council of 22 NovemberF73[2023^4;]]

F74[(bl) Regulation (EU) 2023/2859 of the European Parliament and of the Council of 13 December 2023^2.]

F75[(bm) Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012^51.]

(3) A function or responsibility imposed, or a power conferred, on a person by a provision of this Act is not to be taken to be limited merely by implication from another provision, whether of this or any other Act, that imposes a function or responsibility, or confers a power, on that person.]

F5[(4)F76[…]

(5) In this Act, a reference to the directors of a company, in relation to a company that does not have a board of directors, is a reference to the persons responsible for directing the operations of the company.]

F77[(6) References in this Act to a regulated financial service provider shall, unless the context otherwise requires, be read as including a person who was a regulated financial service provider at the relevant time.]

2A. F80[ Definition of "subsidiary company".

2A.—(1) For the purposes of this Act, a company is a subsidiary of another company if (but only if)—

(a) that other company—

(i) holds a majority of the shareholders’or members’voting rights in the first-mentioned company, or

(ii) is a shareholder or member of that company and controls the composition of its board of directors, or

(iii) is a shareholder or member of that company and controls alone, in accordance with an agreement with other shareholders or members, a majority of the shareholders’or members’voting rights,

(b) that other company has the right to exercise a dominant influence over the first-mentioned company—

(i) because of provisions contained in its memorandum or articles, or

(ii) because of a control contract,

(i) that other company actually exercises a dominant influence over the first-mentioned company, or

(ii) that other company and the first-mentioned company are managed on a unified basis,

(d) the undertaking is a subsidiary of a company that is that other’s subsidiary company.

(2) In determining whether one company controls the composition of the board of directors of another company for the purposes of subsection (1)(a)(ii), section 155(2) ofthe Companies Act 1963applies to companies that are subject to this Act in the same way as it applies to companies that are subject to that section.

(3) The following provisions apply for the purposes of paragraph (a) of subsection (1)(a):

(a) any shares held, or power exercisable—

(i) by a person as a nominee of that other company referred to in that paragraph, or

(ii) by, or by a nominee for, a subsidiary company of that other company (not being the subsidiary company whose shares or board of directors are involved),

are to be treated as held or exercisable by that other company;

(b) despite paragraph (a)—

(i) any shares held or power exercisable by that other company, or a subsidiary company of that other company, on behalf of a person or company that is neither that other company nor a subsidiary company of that other company is to be treated as not held or exercisable by that other company,

(ii) any shares held, or power exercisable, by that other company or by its nominee or subsidiary company are to be treated as not held or exercisable by that other company if they are held as security, but only if the power is, or the rights attaching to the shares are, exercised in accordance with instructions received from the person providing the security;

(c) any shares held or power exercisable by that other company or its nominee or subsidiary company are to be treated as not held or exercisable by that other company if the ordinary business of that other company or its subsidiary company includes lending money and those shares are held as security, but only if the power is, or the rights attaching to the shares are, exercised in the interest of the person who is providing the security.

(4) For the purposes of subsection (1)(a)(i) and (iii), the total of the voting rights of the shareholders or members in the subsidiary undertaking are to be reduced by the following:

(a) the voting rights attached to shares held by the subsidiary company in itself; and

(b) the voting rights attached to shares held in the subsidiary company by any of its subsidiary companies; and

(c) the voting rights attached to shares held by a person acting in his own name but on behalf of the subsidiary company or one of its subsidiary companies.

(5) For the purposes of subsection (1)(b), a company is not to be treated as having the right to exercise a dominant influence over another company unless it has a right to give directions with respect to the operating and financial policies of that other company and the directors of that other company are obliged to comply with those directions.

(6) In subsection (1)(b), "control contract" means a contract in writing conferring a right that—

(a) is of a kind authorised by the memorandum or articles of the company in relation to which the right is exercisable, and

(b) is permitted by the law under which that company is established.

(7) Subsection (5) does not limit the construction of the expression "actually exercises a dominant influence" in subsection (1)(c).]

3. The appointed day.

3.—(1)The Minister shall, by order appoint a day to be the appointed day for the purposes of this Act.

(2)In this Act the expression “the appointed day” means the day appointed under this section to be the appointed day for the purposes of this Act.

4. Repeals.

4.—(1)The several sections of the Currency Act mentioned in the first column of Part I of the First Schedule to this Act are hereby repealed to the extent mentioned in the second column, and as on and from the date specified in the third column, of the said Part of the said Schedule opposite the mention of such section in the said first column.

(2)The several enactments specified in Part II of the First Schedule to this Act are hereby repealed to the extent mentioned in the third column, and as on and from the respective dates mentioned in the fourth column, of the said Part of the said Schedule.

PART II. Establishment of the Central Bank of Ireland and Dissolution of the Currency Commission. Constitution, functions and powers of the Bank

5. F81[Establishment of Central Bank of Ireland.

5.—(1) The body corporate formerly called the Central Bank and Financial Services Authority of Ireland is continued in existence under the name "Central Bank of Ireland".

(2) The Bank—

(a) has perpetual succession, and

(b) may take legal proceedings and be proceeded against in its corporate name.

(3) The Bank is required to have a seal. The seal shall be judicially noticed.

(4) Except as expressly provided by this Act, the affairs and activities of the Bank are to be managed and controlled by the Central Bank Commission.]

5A. F82[General functions and powers of the Bank.

5A.—(1) The Bank has the following functions:

(a) to carry out the efficient and effective co-ordination of—

(i) the activities of the Bank,

(ii) activities undertaken by persons who provide services to, or receive services from, the Bank, and

(iii) the exchange of information between the Bank and any of those persons;

F83[(aa) the functions provided for by the Central Bank and Credit Institutions (Resolution) Act 2011;]

F84[(ab) the functions of the resolution authority under the European Union (Bank Recovery and Resolution) Regulations (S.I No. 289 of 2015);]

(b) where appropriate, to represent and co-ordinate the representation of the Bank on international financial bodies and at international meetings relating to financial or economic matters;

(c) to establish and maintain, either directly or indirectly, contact with the monetary authorities established in other countries and in territories;

(d) whenever it thinks fit, to provide governments of, and financial institutions and other bodies established in, other countries and in territories with advice or other assistance on matters within its expertise;

(e) the function of holding an inquiry under Part IIIC;

(f) the function of monitoring the provision of financial services to consumers of those services to the extent that the Bank considers appropriate, for the purposes of protecting the public interest and the interests of consumers;

(g) to provide for the collection and study of data that deal with monetary and credit problems and to publish information about that data;

(h) to provide advice and assistance to the Central Statistics Office about the collection, compilation, analysis and interpretation of statistics relating to the balance of payments, national accounts and other financial statistics and, where appropriate, to collect data for that purpose;

(i) to perform such other functions as are imposed on it by or under this and any other Act or law.

(2) The Bank has power to do whatever is necessary for or in connection with, or reasonably incidental to, the performance of its functions.

(3) In particular, the powers of the Bank include powers of a kind that, in accordance with normal banking practice, may be exercised by a bank.

(4) The functions of theF85[the Competition and Consumer Protection Commission]specified in subsection (5) are, in so far as they relate to a financial service provided by a regulated financial service provider, also functions of the Bank and subsections (6) to (8) have effect for the purposes of this subsection.

F86[(5) The functions of the Competition and Consumer Protection Commission referred to in subsection (4) are the following functions, namely, functions under—

(a) subsections (1), (5), (6) and (8) ofsection 10of the Competition and Consumer Protection Act 2014 in relation to—

(i)sections 41 to 56(other than section 50) of theConsumer Protection Act 2007, and

F87[(ii) Parts 4 and 6 of the Consumer Rights Act 2022,]

(b)sections 34,35and36of the Competition and Consumer Protection Act 2014, and

(c)sections 71,72,73,75,81,82,84,86,88and90of theConsumer Protection Act 2007.]

(6) Subsection (4) operates to vest in the Bank, concurrently with the vesting in theF85[the Competition and Consumer Protection Commission]of those functions by theConsumer Protection Act 2007F88[and the Competition and Consumer Protection Act 2014], the functions specified in subsection (5).

(7) Accordingly—

(a) the functions so specified are, subject to any relevant co-operation agreement entered intoF89[undersection 19of the Competition and Consumer Protection Act 2014], capable of being performed by either theF85[the Competition and Consumer Protection Commission]or the Bank, and

(b) subject to subsection (9), references to theF85[the Competition and Consumer Protection Commission]in the provisions of that Act specified in subsection (5) are to be read as including references to the Bank and those provisions otherwise apply.

(8) Subject to subsection (9),sections 80,85and87of theConsumer Protection Act 2007apply to the Bank as they apply to theF85[the Competition and Consumer Protection Commission]and, accordingly, references to theF85[the Competition and Consumer Protection Commission]in those sections are to be read as including references to the Bank.

(9) Where any section of theConsumer Protection Act 2007F88[or the Competition and Consumer Protection Act 2014]specified in subsection (5) or (8) provides for anything to be done in relation to theF85the Competition and Consumer Protection Commission then, if a co-operation agreement entered intoF89[undersection 19of the Competition and Consumer Protection Act 2014]so specifies, it is sufficient compliance with the section concerned if the thing is done in relation to theF85[the Competition and Consumer Protection Commission]or the Bank as is specified in that agreement.

(10) The Bank is required to perform its functions and exercise its powers in a manner consistent with the Rome Treaty and the ESCB Statute.

(11) Subject to subsection (10), the Bank shall perform its functions and exercise its powers in a way that is consistent with—

(a) the orderly and proper functioning of financial markets,

(b) the prudential supervision of providers of financial services, and

(12) The Bank can perform its functions and exercise its powers both within the State and elsewhere.]

5B. F90[Specific powers of the Bank.

5B.—Without limiting section 5A, the powers of the Bank include power to do all or any of the following:

(a) subject to paragraph (b), acquire, hold, dispose of or otherwise dealin all kinds of property (including real property, securities, coins, gold or silver bullion and other precious metals, and any kinds of currency or currency units);

(b) acquire, hold or dispose of shares in a bank or other institution formed wholly or mainly by banks that are the principal currency authority in their respective countries, but only with the approval of the Minister;

(c) enter into, carry out, assign or accept the assignment of, vary or rescind, any contract, agreement or other obligation;

(d) provide loans and other kinds of financial accommodation to credit institutions and other persons on the security of such assets and on such terms and conditions as the Board considers appropriate;

(e) give guarantees and make payments under them;

(f) receive funds on deposit;

(g) open accounts in other countries or act as agent, depository, or correspondent of any credit institution carrying on business in or outside the State;

(h) re-discount exchequer notes or bills, local authority bills, bills of exchange and promissory notes on such terms and conditions as the Board considers appropriate;

(i) keep registers of securities generally;

(j) operate or participate in a depository of securities or other instruments;

(k) keep the accounts for the clearing and settlement of securities or payment instruments;

(l) become a member of, or a party to, the establishment or operation of one or more payment systems;

(m) operate or participate in a system that provides a settlement service for transactions in securities or other instruments for its members;

(n) enter into agreements with depositories of securities or of other instruments, and carry out transactions under the terms of those agreements so far as necessary for the settlement of transactions between members of those depositories and the members of any depository operated by the Bank;

(o) transfer assets, income or liabilities to the European Central Bank where required under the ESCB Statute.]

5C. F91[Supplementary powers of Bank with respect to certain responsibilities.

5C.—(1) To enable the Bank to carry out its responsibilities, the Bank may—

(a) undertake studies, analyses and surveys with respect to the provision of relevant financial services to consumers,

(b) collect and compile information for that purpose, and

(2) In undertaking such a study, analysis or survey, the Bank—

(a) may, by notice in writing, require any person who, in the opinion of the Bank, has information, or has control of a record or other thing, that is relevant to the study, analysis or survey, to provide the information, record or thing to the Bank, and

(b) may, by the same or another notice in writing, require the person to attend before an officer or employee of the Bank for that purpose.

F92[(3) Subject to section 33AK, if the Competition and Consumer Protection Commission is of the opinion that information obtained by the Bank pursuant to subsections (1) and (2) is relevant to the exercise of that Commission’s functions undersection 10(3)(j) of the Competition and Consumer Protection Act 2014, the Bank shall provide the requested information to the Commission at the Commission’s request.]

(4) A person commits an offence if the person—

(a) intentionally prevents the Bank from exercising a power conferred by subsection (1),

(b) intentionally obstructs or hinders the Bank in the exercise of such a power,

(c) without reasonable excuse, fails to comply with a requirement made to the person in accordance with subsection (2), or

(d) in purporting to comply with a requirement made under subsection (2) to provide information, provides the Bank with information that the person knows, or ought reasonably to know, is false or misleading in a material respect.

(5) The Head of Financial Regulation may, in writing, authorise an officer or employee of the Bank to investigate the business, or any aspect of the business, of a financial service provider who has been required under this section to provide information, or a record or other thing. Such an officer or employee may take whatever steps are necessary for or in connection with carrying out such an investigation.

(6) A financial service provider who—

(a) without reasonable excuse, fails to co-operate with an investigation carried out under subsection (5), or

(b) intentionally prevents such an investigation from being carried out, or intentionally obstructs or hinders the investigation,

commits an offence.

(7) A person who is convicted of an offence under this section is liable—

(a) on conviction on indictment, to a fine not exceeding€30,000 or to imprisonment for a term not exceeding five years, or to both, or

(b) on summary conviction, to a fine not exceeding€3,000 or to imprisonment for a term not exceeding 12 months, or to both.

(8) Summary proceedings for an offence under this section may be brought and prosecuted by the Bank, but not to the exclusion of any other person who is authorised to bring and prosecute summary offences.]

6. F93[Bank to perform functions of European System of Central Banks.

6.—(1) The Bank shall perform all functions imposed, and exercise all powers conferred, on the Bank by or under the Rome Treaty or the ESCB Statute.

F94[(1A) Nothing in theCentral Bank Acts 1942 to 2010affects the independence of the Bank, the Governor and the Commission required by the Rome Treaty and the ESCB Statute.

(1B) Without limiting the generality of subsection (1A), nothing in theCentral Bank Acts 1942 to 2010authorises any person or authority to give any direction to, or require any action (including the provision of information) by, the Bank, the Governor or the Commission if compliance by the Bank, the Governor or the Commission (as the case may be) with the direction or requirement would be inconsistent with the Rome Treaty or the ESCB Statute.]

(2) This section is subject to section 19A.

(3)Section 9 of the Ministers and Secretaries Act 1924does not apply to the Bank.]

6A. F95[Objectives of Bank in discharging ESCB functions, etc.

6A.—(1) In discharging its functions and exercising its powers as part of the European System of Central Banks, the primary objective of the Bank is to maintain price stability.

F96[(2) The Bank also has the following objectives:

(a) the stability of the financial system overall;

(b) the proper and effective regulation of financial service providers and markets, while ensuring that the best interests of consumers of financial services are protected;

F97[(ca) the resolution of financial difficulties in credit institutions;]

(d) the provision of analysis and comment to support national economic policy development;

(e) the discharge of such other functions and powers as are conferred on it by law.

(3) The Minister may, from time to time, request the Governor or the Commission to consult with the Minister, in relation to their respective functions, as regards the performance by the Bank of any function of the Bank (other than one imposed on it by the Rome Treaty or the ESCB Statute).]

(4) The Minister may, from time to time, request the Governor to inform the Minister with respect to the pursuit of the primary objective of the Bank.

F98[(5) The Governor or the Commission (as the case requires) shall comply with a request to the Governor or the Commission under subsection (3) or (4) in so far as the request is consistent with the Rome Treaty, the ESCB Statute and the law of the State.]

(6) Without prejudice to the objective of maintaining price stability, the Bank is required to support the general economic policies of the European Union with a view to contributing to the achievement of the objectives of that Union as laid down in Article 2 of the Rome Treaty.]

6B. F99[Bank’s power to hold and deal in land, etc.

6B.—(1) For the purpose of enabling the Bank to perform its functions, the Bank—

(a) may acquire and hold land, and

(b) may build, establish, equip and maintain offices and other premises,

in such places, whether in the State or elsewhere, as it considers appropriate.

(2) The Commission is responsible for administering the provision of accommodation and office and other equipment with a view to enabling the Bank to perform and exercise its functions and powers.

(3) The Bank may sell, lease or otherwise dispose of land held by the Bank whenever the Commission considers that the land is no longer required for the purpose of enabling the Bank to perform its functions.

(4) In this section "acquire" includes acquire by purchase, lease or exchange.]

6C. F100[Power of the Bank to establish divisions, etc. within the Bank.

6C.—F101[…]]

6D. F102[Staff of Bank.

6D.—(1) Subject to this section, the Commission shall appoint a Secretary of the Bank and such other employees of the Bank as they consider necessary for the effective performance and exercise of the functions and powers of the Bank.

(2) The Commission is responsible for administering the staff of the Bank with a view to enabling the Bank to perform and exercise its functions and powers.

(3) Except as regards the appointment of a Secretary of the Bank, the Governor has the same power to appoint employees of the Bank as the Commission has under subsection (1), but that power is only exercisable in relation to responsibilities specified in paragraphs (a) and (b) of subsection (1), and subsection (2), of section 19A.

(4) Employees appointed under subsection (3) are taken, for the purposes of this Act, to have been appointed under subsection (1).

(5) The employees of the Bank are to be employed on such conditions (including conditions as to remuneration and allowances) as the Commission fixes from time to time.

(6) Subject to subsection (8), an appointment under this section shall be made by competition to be conducted in accordance with rules made by the Commission.

(7) The Commission may, in relation to a particular competition, impose conditions of entry, limitations and safeguards.

(8) Subsection (6) does not apply to an appointment to a position if the Commission decides that appointment to the position by competition would be inappropriate.

(9) The Commission shall establish and operate a policy under which provision is made for employees of the Bank to be given opportunities for training and experience in various activities of the Bank.]

6E. F103[Assignment of employees of Bank.

6E.—F104[…]]

6F. F105[Bank may engage agents and act as agent for others.

6F.—The Bank may engage agents, and act as agent for other persons.]

6G. General fund of the Bank.

6G.—F107[…]]

6H. F108[Accounting and other records of Bank.

6H.—F109[…]]

6I. F110[Report and returns by Bank.

6I.—F111[…]]

6J. F112[Exemption of Bank from taxes.

6J.—Profits, income and chargeable gains of the Bank are exempt from corporation tax, income tax and capital gains tax despite any contrary provisions of any enactment providing for corporation tax, income tax or capital gains tax.]

6K. F113[Provisions relating to documents of the Bank.

6K.—(1) The Bank may keep its documents wholly or partly in a non-legible form so long as they are capable of being reproduced in a legible form.

(2) The Bank is not required to keep any of its documents (including accounting records) for longer than 6 years after the latest date of the period to which such documents relate. This subsection has effect despite any other enactment to the contrary.

(3) In any legal proceedings, a copy or reproduction in legible form of a document, or an entry in a document, kept or formerly kept by the Bank is admissible as evidence of the entry and the matters contained in it where the document has been destroyed or is kept by the Bank in a non-legible form.

(4) In this section, "document" means any record of information, and includes—

(a) anything on which there is writing, or

(b) anything on which there are marks, figures, symbols or perforations having a meaning for persons qualified to interpret them, or

(d) a map, plan, drawing or photograph.]

7. Certain particular powers of the Bank.

7.— F114[…]

8. Certain further powers of the Bank.

8.— F115[…]

9. The capital of the Bank.

9.—(1)The capital of the Bank shall be the sum of forty thousand pounds whereof the sum of twenty-four thousand pounds shall be paid to the Bank by the Minister on the appointed day or as soon thereafter as may be and whereof the residue shall be paid to the Bank by the Minister at such time or times as may be agreed upon by the Board and the Minister.

(2)All moneys payable to the Bank by the Minister under the foregoing sub-section of this section shall be charged on and paid out of the Central Fund or the growing produce thereof.

(3)When the Minister has paid to the Bank the sum of twenty-four thousand pounds in pursuance of the foregoing provisions of this section, the Bank shall forthwith repay to every bank which is a Shareholding Bank immediately before the appointed day all sums paid by such bank to the Commission in pursuance of section 64 of the Currency Act together with the appropriate dividend on every such sum for the period from the last date up to which dividend had been paid thereon to the date of such repayment.

(4)F116[…]

10. F117[Seal of Bank.

10.—(1) The seal of the Bank shall be kept in such custody as the Commission directs.

(2) The seal of the Bank may be used only as authorised—

(a) if the seal is to be used in relation to a function or power of the Bank that is to be performed or exercised by the Commission, by the Commission, or

(b) if the seal is to be used in relation to a function or power of the Bank that is to be performed or exercised by the Governor, by the Governor.

(3) The seal of the Bank shall be authenticated by—

(a) the signature of the Governor or a member of the Commission authorised in that behalf by the Commission, and

(b) the counter-signature of the Secretary of the Bank or some other officer or employee of the Bank authorised in that behalf by the Commission.

(4) A document purporting to be made or issued by the Bank and to be sealed with the seal of the Bank authenticated in accordance with subsection (3) is admissible in evidence and shall be taken to have been made or issued by the Bank until the contrary is proved, without proof of the signature or authority of any person purporting to have signed or counter-signed it.]

11. Interpretation of references to the Commission in the Currency Act, 1927.

11.—(1)On and after the appointed day and subject to the repeals and amendments effected by this Act, the Currency Acts, 1927 and 1930, shall have effect with and subject to the modification that every mention of or reference to the Chairman shall be construed as a mention of or reference to the Governor and every mention of or reference to the Commission shall be construed as a mention of or reference to the Bank, save that any such mention or reference which, expressly or by necessary implication, refers to the members of the Commission shall be construed as a mention of or reference to the Board.

(2)A legal tender note may, on and after the appointed day, be either of such form, size and design and printed in such manner and on such paper and numbered and authenticated in such manner as shall have been prescribed (whether before or after the passing of this Act) by the Commission under sub-section (2) of section 45 of the Currency Act (as modified by the foregoing sub-section of this section) before the appointed day or of such form, size and design and printed in such manner and on such paper and numbered and authenticated in such manner as shall be prescribed by the Bank under the said sub-section (2) of the said section 45 (as modified as aforesaid) on or after the appointed day.

(3)A consolidated bank note may, on and after the appointed day, be either of such form, size and design, and printed in such manner and on such, paper and numbered and authenticated in such manner as shall have been prescribed (whether before or after the passing of this Act) by the Commission under sub-section (3) of section 51 of the Currency Act (as modified by the first sub-section of this section) before the appointed day or of such form, size and design and printed in such manner and on such paper and numbered and authenticated in such manner as shall be prescribed by the Bank under the said sub-section (3) of the said section 51 (as modified as aforesaid) on or after the appointed day.

12. The Associated Banks.

12.—F118[…]

13. Admission of a bank to be an Associated Bank.

13.—F119[…]

14. Removal of a bank from being an Associated Bank.

14.—F120[…]

15. Dissolution of the Commission.

15.— (1)F121[…]

(2) F121[…]

(3) F121[…]

(4)Every person who, immediately before the appointed day, is in the employment of the Commission in any capacity shall, on the appointed day, become and be transferred to the employment of the Bank in the same capacity and with the same tenure, remuneration, and conditions of service as he had in the employment of the Commission immediately before the appointed day, and in order to secure to every such person on and after the appointed day the like rights and benefits (if any) in relation to superannuation and compensation for loss of employment as he had immediately before the appointed day, the following provisions shall have effect, that is to say:—

(a)every scheme made by the Commission under sub-section (4) of section 31 of the Currency Act which is in force immediately before the appointed day shall continue in force on and after the appointed day and shall be observed and performed by the Bank accordingly;

(b)for the purposes of every scheme continued in force by the foregoing paragraph of this sub-section and of every scheme which may be made by the Bank under the said sub-section (4) of section 31 on or after the appointed day, service in the employment of the Commission (including service in any other employment which is deemed by such scheme to be service in the employment of the Commission) shall be deemed to be service in the employment of the Bank and the period of service (including service deemed as aforesaid) of any person in the employment of the Commission ending immediately before the appointed day and the period of service of such person in the employment of the Bank beginning on and continuing after the appointed day shall be deemed to be one continuous period of service in the employment of the Bank.

16. Appointments to the staff of the Bank.

16.—F123[…]

17. Copyright in notes issued by the Bank.

17.—F124[…]

18. General adaptation of references to the Commission.

18.—Every mention of or reference to the Commission which is contained in any enactment (other than the Currency Acts, 1927 and 1930) in force on the appointed day shall, on and after that day, be construed and have effect as a mention of or reference to the Bank.

PART III. The Board of Directors of the Bank.

18A. F125[Interpretation: Part III.

18A.—In this Part, unless the context otherwise requires—

"credit institution" means an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credit on its own account but does not include the European Central Bank;

"financial institution" means an undertaking, other than a credit institution, that provides one or more of the kinds of financial services that are set out in the Schedule to the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992);

"insurance undertaking" has the meaning given bythe Insurance Act 1989.]

18B. F126[Functions of Central Bank Commission.

18B.—(1) Except as expressly provided otherwise by this Act, the affairs and activities of the Bank shall be managed and controlled by the Central Bank Commission.

(2) The Commission shall ensure that the Bank’s central banking functions and financial regulation functions are integrated and coordinated.

(3) Without prejudice to section 19A, the Commission shall ensure that the powers and functions conferred on the Bank by sections 5A, 5B and 5C are properly exercised and discharged.

(4) The performance and exercise of the functions and powers of the Commission are not affected by there being one or more vacancies in the membership of the Commission.]

18BA. F127[ Membership of Board and Regulatory Authority.

18BA.—F128[…]]

18C. F129[Acts, etc., of Commission to be acts, etc., of Bank.

18C.—Any act, matter or thing done in the name of, or on behalf of, the Bank by the Commission in the performance or exercise of the Commission’s functions or powers shall be taken to have been done by the Bank.]

18CA. F130[Membership of Commission.

18CA.—(1) The Commission comprises—

(a) the persons for the time being holding or performing the duties of the following offices:

(i) Governor;

(ii) Head of Central Banking;

(iii) Head of Financial Regulation;

(iv) Secretary General of the Department of Finance, and

(b) at least 6, but no more than 8, other members appointed by the Minister.

(2) The Governor is the Chairperson of the Commission.]

18D. F131[Additional powers of Commission.

18D.—(1) The Commission has power to do whatever is necessary for or in connection with, or reasonably incidental to, the performance of its functions.

(2) Without prejudice to the generality of subsection (1) and subject to subsection (3), the Commission—

(a) may establish committees of the Commission consisting of one or more members of the Commission either solely or together with one or more officers or employees of the BankF132[or with one or more persons with relevant knowledge of any of the matters specified in section 24(1) (or with both)], and

(b) may determine the procedure and define the functions and powers of such committees.

(3) Subsection (2) does not authorise the Commission to delegate to a committee any function of the Bank that a provision of this Act requires to be performed by the Governor.]

18E. F133[Bank may establish advisory groups.

18E.—(1) Subject to subsection (2), the Bank may establish an advisory group or groups to advise it on the performance of its functions and the exercise of its powers and shall in particular establish the following:

(a) an advisory group to advise the Bank on the performance of its functions and the exercise of its powers in relation to consumers of financial services;

(b) an advisory group to advise the Bank, where the Bank so requests, on the performance of its functions and the exercise of its powers in relation to credit unions.

(2) The Bank shall not establish an advisory group in relation to the Governor’s ESCB-related functions.

(3) Subject to subsection (4), an advisory group established under subsection (1) shall be made up of persons who have expertise, knowledge or experience relevant to the functions of the advisory group concerned, and may include members of the Commission, officers of the Bank or employees of the Bank.

(4) The advisory group (in this section called "the consumer advisory group") established to advise the Bank on the performance of its functions and the exercise of its powers in relation to consumers of financial services shall not include members of the Commission, officers of the Bank or employees of the Bank.

(5) The consumer advisory group shall advise the Bank on the exercise of the Bank’s powers and the performance of the Bank’s functions in relation to the consumers of financial services and in particular in relation to—

(a) the effects of the Bank’s Strategic Plans on consumers of financial services,

(b) initiatives aimed at further enhancing the protection of consumers of financial services, and

(6) The period for which a member of the consumer advisory group is appointed may be up to 3 years. A member is eligible for re-appointment.

(7) The Bank shall determine the manner in which, and the reasons for which, a member of an advisory group may be removed from membership of the advisory group.

(8) The Bank shall provide an advisory group with such administrative services and funds as the Bank believes necessary to carry out its functions.]

18F. F134[Delegation of certain functions of Commission, etc.

18F.—(1) Subject to subsection (3), the Commission may delegate to the Governor, a Head of Function or an employee of the Bank any function or power of the Commission, if the Commission considers it appropriate to do so in the interests of the efficient and effective management of the Bank and the exercise of its powers and functions.

(2) Without prejudice to the generality of subsection (1), the Commission may in particular—

(a) delegate to a specified person or body (including a committee established under section 18D(2)) the performance or exercise of any one or more of the functions and powers of the Commission;

(b) impose conditions, limitations, or restrictions on the performance or exercise by any such person or body of functions or powers delegated under this subsection;

(c) provide in appropriate cases for the review by the Commission of decisions taken or things done by any such person or body in the performance or exercise of any function or power so delegated.

(3) Subsection (2) does not authorise the Commission to delegate to a committee any function of the Bank that a provision of this Act requires to be performed by the Governor.]

19. Appointment, tenure of office, etc., of the Governor.

19.—(1)The Governor shall be appointed by the President on the advice of the Government and shall receive such remuneration and allowances and be subject to such conditions of service as the Board shall from time to time determine.

F135[(2) A person is not eligible for appointment as Governor if the person—

(a) is a member of either House of the Oireachtas or is, with the person’s consent, nominated as a candidate for election as such a member or is nominated as a member of SeanadÉireann, or

(b) is a member of the European Parliament or is, with the person’s consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of that Parliament, or

(c) is a member of a local authority or is, with the person’s consent, nominated as a candidate for election as such a member.

(3) A person appointed as Governor holds office for 7 years from the date of the person’s appointment, unless the person previously ceases to hold that office as provided by this Part.

(4) The President, on the advice of the Government, may appoint a person holding office as Governor for a further period of 7 years to take effect at the end of the person’s current period of appointment. This subsection applies whether the person was appointed under subsection (1) or this subsection.

(5) A person holding office as Governor is disqualified from being a director of a credit institution, financial institution or insurance undertaking.

(6) If a person who is appointed to the office of Governor is a director of a credit institution, financial institution or insurance undertaking, the person ceases to hold that office at the end of 10 days after the date of the appointment unless, within that period, the person ceases to be such a director.

(7) A person ceases to hold office as Governor if the person—

(a) dies, or

(b) completes a term of office and is not re-appointed, or

(d) is, with the person’s consent, nominated as a candidate for election as a member of either House of the Oireachtas or is nominated as a member of SeanadÉireann, or

(e) is, with the person’s consent, nominated as a candidate for election as a member of the European Parliament or to fill a vacancy in the membership of that Parliament, or

(f) is, with the person’s consent, nominated as a candidate for election as a member of a local authority, or

(g) is adjudged bankrupt (either in the State or elsewhere) or enters into a composition with the person’s creditors, or

(h) becomes physically or mentally incapable of performing the duties of Governor, or

(i) is convicted of an offence (either in the State or elsewhere) and sentenced to serve a term of imprisonment for the offence, or

(j) ceases to hold the office because of subsection (6), or

(k) becomes disqualified from holding the office under section 20, or

(l) is removed from the office under section 21.]

19A. F136[Responsibilities and powers of the Governor.

19A.—(1) The Governor is responsible for—

(a) holding and managing by the Bank of the foreign reserves of the State, and

(b) promoting the efficient and effective operation of payment and settlement systems, and

(2) The Governor has sole responsibility for the performance of the functions imposed, and the exercise of powers conferred, on the Bank by or under the Rome Treaty or the ESCB Statute.

F137[(3) Subject to the requirements of the Rome Treaty and the ESCB Statute, the Governor shall provide the Commission with information about, and may discuss with the Commission, the performance by the Governor of the functions and powers referred to in subsections (1) and (2).]

(4) The Governor has power to do whatever is necessary for or in connection with, or reasonably incidental to, carrying out the Governor’s responsibilities.

(5) In carrying out or exercising the Governor’s responsibilities or powers, the Governor shall, as far as reasonably practicable, ensure that the resources of the Bank allocated for carrying out those responsibilitiesor exercising powers are used effectively, efficiently and economically.

(6) Any act, matter or thing done in the name of, or on behalf of, the Bank by the Governor in the performance or exercise of the Governor’s responsibilities or powers is to be taken to have been done by the Bank.]

19B. F138[Decisions about certain issues involving Treaties governing European Union and ESCB Statute.

19B.—Where the Commission is considering a budgetary or funding issue relating to the Bank, and in the opinion of the Governor the issue has implications for the independence of the Bank or the performance by the Governor of the functions conferred on the Governor and the Bank by or under the treaties governing the European Union (within the meaning given bysection 1of theEuropean Communities Act 1972as amended bysection 2of theEuropean Communities Act 2009) or the ESCB Statute, the Governor shall so inform the Commission and thereafter—

(a) the Commission shall cease to consider the issue,

(b) the Governor has the sole right to determine the issue, and

20. Prohibition of the Governor holding shares in a F139[financial institution].

20.—(1)Every person appointed to be Governor shall within three months after his appointment absolutely sell or otherwise dispose of all shares in any F139[financial institution] which he shall, at the time of his appointment, own or be interested in for his own benefit.

(2)If and whenever any shares in a F139[financial institution] shall come to or vest in the Governor by will or succession for his own benefit, he shall, within three months after the same shall have so come to or vested in him, absolutely sell or otherwise dispose of the same or his interest therein.

(3)The Governor shall not purchase, take or become interested in for his own benefit any shares in any F139[financial institution].

(4)If the Governor shall retain, purchase, take, or become or remain interested in any shares in any F139[financial institution] in contravention of this section he shall forthwith become and be disqualified from holding the office of Governor.

F140[(4A) This section does not prohibit the Governor from—

(a) entering into a policy of insurance, or

(b) purchasing units of, or participating in, a collective investment scheme whose funds are invested in bonds or equities generally (including the bonds or shares of a financial institution), or

(5) In this section—

"bank" includes a bank incorporated outside the State as well as a bank incorporated in the State;

"financial institution" includes a credit institution and an insurance undertaking;

"shares", in relation to a bank, include stock, shares, debentures, debenture stock, bonds and other securities of the bank.]

21. F141[Removal of Governor from office.

21.—(1) The President may, on the advice of the Government, remove the Governor from office on the ground that the Governor has, because of ill-health, become permanently incapacitated from carrying out the responsibilities of Governor.

(2) The President may, on the advice of the Government, remove the Governor from officeF142[…]on one or more specified grounds of serious misconduct.

(3) A decision of the President removing a Governor from office under this section takes immediate effect from the date on which the decision is notified to the Governor or the date on which the decision is first published, whichever date first occurs.

(4) A decision of the President removing a Governor from office under this section can be referred to the European Court of Justice in such manner and on grounds consistent with Article 14.2 of the ESCB Statute.]

22. F143[Acting Governor.

22.—(1) The Governor may appoint one of the otherF144[members]to act as Governor to carry out the designated responsibilities of the Governor’s office whenever the Governor is temporarily unable to carry out those responsibilities, whether because of absence or ill-health or for any other reason.

(2) If the Governor fails to make an appointment in the circumstances specified in subsection (1), the otherF145[members]may appoint one of them to carry out the designated responsibilities.

F146[(3) If the office of Governor becomes vacant, the Commission may appoint another member of the Commission to act as Governor to carry out the designated responsibilities of the Governor during the vacancy. A member so appointed shall not continue to act after the end of 3 months from the occurrence of the vacancy which occasioned his or her appointment.

(4) A member appointed under this section, while acting as Governor, has the designated responsibilities of the office of Governor and also the powers relating to the carrying out of those responsibilities.

(5) A member appointed under this section to act as Governor is entitled to be paid such remuneration (including travelling and subsistence allowances) as the Commission determines from time to time.

(6) A member appointed under this section to act as Governor does not, by reason of that appointment, vacate his or her office as a member.

(7) This section does not apply to responsibilities of the Governor that are required, by virtue of section 22A, to be carried out by the Head of Central Banking in any of the circumstances specified in that section.]

(8) In this section, "designated responsibilities", in relation to the office of Governor, means those responsibilities of the Governor other than those specified in section 19A(1)(a) and (b) and (2).]

22A. F147[F148[Head of Central Banking] to carry out certain responsibilities of the Governor.

22A.—TheF148[Head of Central Banking]is required to carry out the responsibilities of the Governor under section 19A (other than under subsection (1)(c)) and paragraph 3(3) of Schedule 1 whenever—

(a) the Governor is, because of absence or ill-health or for any other reason, unable to carry out those responsibilities, or

(b) the office of Governor is vacant.]

23. F149[Heads of Function.

23.—(1) In this Act a reference to the Heads of Function is a reference to the Head of Central Banking and the Head of Financial Regulation.

(2) With the consent of the Minister, the Commission may substitute another title for either or both of the titles "Head of Central Banking" and "Head of Financial Regulation". If the Commission does so, the Commission shall cause a notice of the substitution to be published in theIris Oifigiúil. The substitution has effect only on and after the date of that publication.

(3) If the Commission substitutes a title in accordance with subsection (2), a reference in this Act or in any other enactment or statutory instrument to the title"Head of Central Banking" or "Head of Financial Regulation", as the case may be, shall be construed in accordance with the substitution.]

23A. F150[Responsibilities of Heads of Function.

23A.—Subject to section 22A, the responsibilities of a Head of Function are those assigned to the office concerned by the Commission.]

23B. F150[Appointment of Heads of Function.

23B.—(1) The Commission shall, with the consent of the Minister, appoint suitably qualified persons as Heads of Function.

(2) Subject to subsection (3), an appointment as a Head of Function shall be made by open competition.

(3) Subsection (2) does not apply to the appointment of a Head of Function if the Commission, with the consent of the Minister, decides that appointment to the office by open competition would be inappropriate.

(4) A person is not eligible for appointment as a Head of Function if he or she—

(a) is a member of either House of the Oireachtas,

(b) is, with his or her consent, nominated as a candidate for election as such a member or is nominated as a member of SeanadÉireann,

(c) is a member of the European Parliament or is, with his or her consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of that Parliament, or

(d) is a member of a local authority or is, with his or her consent, nominated as a candidate for election as such a member.]

23C. F152[Terms of appointment of Heads of Function.

23C.—(1) An appointment as a Head of Function has effect from the date on which the Minister consents to the appointment or a later date agreed between the Commission and the person appointed.

(2) Subject to subsections (3) and (6), a Head of Function holds office for up to 5 years, as the Minister approves at the time of the Head of Function’s appointment, and is eligible for reappointment provided that the total term in office of a person appointed as a Head of Function shall not exceed 10 years.

(3) The following do not count towards determining the period for which a person has held office as a Head of Function:

(a) any period during which the person was acting in either office of Head of Function;

(b) any period during which the person held the other office of Head of Function.

(4) A Head of Function shall receive such remuneration and allowances, and is subject to such conditions of service, as the Commission from time to time determines.

(5) A person appointed as a Head of Function may engage in other remunerative employment only with the consent of the Commission.

(6) A person ceases to hold office as a Head of Function if he or she—

(a) dies,

(b) completes a term of office and is not re-appointed,

(d) is, with his or her consent, nominated as a candidate for election as a member of either House of the Oireachtas or is nominated as a member of SeanadÉireann,

(e) is, with his or her consent, nominated as a candidate for election as a member of the European Parliament or to fill a vacancy in the membership of that Parliament,

(f) is, with his or her consent, nominated as a candidate for election as a member of a local authority,

(g) is adjudged bankrupt (either in the State or elsewhere) or enters into a composition with the person’s creditors,

(h) becomes physically or mentally incapable of performing the duties of the relevant office of Head of Function,

(i) is convicted of an offence (either in the State or elsewhere) and sentenced to serve a term of imprisonment for the offence, or

(j) is removed from office under subsection (7).

(7) The Commission may remove or suspend a Head of Function from office, but only for reasons previously notified in writing to the Head of Function concerned.]

23D. F153[Acting Heads of Function.

23D.—(1) In the event of—

(a) the illness or absence of a Head of Function,

(b) the suspension from office of the holder of such an office, or

the Governor, with the consent of the other members of the Commission, may appoint a member of the Commission or an officer or employee of the Bank to act in the relevant office.

(2) A person acting as a Head of Function has, while acting in that office, all the responsibilities and powers of that office.

(3) The other members of the Commission may at any time remove from office a person who is acting as a Head of Function.

(4) If a person is to act as a Head of Function for a period of more than 6 months, the appointment does not take effect until the Minister approves it. A person acting as a Head of Function shall not continue to so act for more than 6 months without the consent of the Minister.

(5) A person acting as a Head of Function is entitled to be paid such remuneration (including travelling and subsistence allowances) as the Commission determines from time to time.]

24. F154[Appointment of members of Commission.

24.—(1) The Minister may appoint a person as a member of the Commission if and only if the Minister is of the opinion that the person has relevant knowledge of—

(a) accountancy,

(b) actuarial science,

(d) consumer interests,

(e) corporate governance,

(f) economics,

(g) financial control,

(h) financial regulation,

(i) financial services,

(j) insurance,

(k) law,

(l) social policy, or

(m) systems control.

(2) A person is not eligible for appointment as a member of the Commission if he or she—

(a) is a member of either House of the Oireachtas,

(b) is, with his or her consent, nominated as a candidate for election as such a member or is nominated as a member of SeanadÉireann,

(c) is a member of the European Parliament or is, with his or her consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of thatF155[Parliament,]

(d) is a member of a local authority or is, with his or her consent, nominated as a candidate for election as such aF155[member,]]

F156[(e) performs a pre-approval controlled function (within the meaning given bysection 22of theCentral Bank Reform Act 2010) or has what in the opinion of the Minister constitutes a significant shareholding in a regulated financial service provider,

(f) has been adjudged bankrupt (either in the State or elsewhere) or has entered into a composition with his or her creditors, or

(g) has been convicted of an offence (either in the State or elsewhere) and sentenced to serve a term of imprisonment for the offence.]

24A. F157[Remuneration, etc., of appointed members of Commission.

24A.—An appointed member of the Commission is entitled to receive such remuneration and allowances, and is subject to such conditions of service, as the Minister from time to time determines.]

24B. F158[Tenure of office of members of Commission.

24B.—(1) Anex-officiomember of the Commission holds office as such for as long as he or she holds or performs the duties of the office by virtue of which he or she is such a member.

(2) Subject to subsections (3) and (4), an appointed member of the Commission holds office as such for a period of 5 years unless he or she previously ceases to hold that office in accordance with a provision of this Part.

(3) Of the first 8 persons appointed as members of the Commission—

(a) 2 or 3 of those persons shall be appointed for a first term of 5 years,

(b) 2 or 3 of those persons shall be appointed for a first term of 4 years, and

(4) An appointed member of the Commission shall not be entitled to serve more than 2 terms of office.]

25. F159[Vacation of office of members of Commission.

25.—(1) A person ceases to be anex-officiomember of the Commission if he or she ceases to hold or perform the duties of the office by virtue of which he or she is such a member.

(2) An appointed member of the Commission ceases to be an appointed member if he or she—

(a) dies,

(b) completes a term of office and is not re-appointed,

(d) has, without the permission of the other members, been absent from meetings of the Commission for a consecutive period of 6 months,

(e) is, with his or her consent, nominated as a candidate for election as a member of either House of the Oireachtas or is nominated as a member of SeanadÉireann,

(f) is, with his or her consent, nominated as a candidate for election as a member of the European Parliament or to fill a vacancy in the membership of that Parliament,

(g) is, with his or her consent, nominated as a candidate for election as a member of a local authority,

(h) is adjudged bankrupt (either in the State or elsewhere) or enters into a composition with the person’s creditors,

(i) becomes physically or mentally incapable of performing the duties of a member of the Commission,

(j) is convicted of an offence (either in the State or elsewhere) and sentenced to serve a term of imprisonment for the offence, or

(k) is removed from office under subsection (3).

(3) The Minister may remove an appointed member of the Commission from office—

(a) for proven misconduct or incompetence, or

(b) if in the Minister’s opinion it is necessary or desirable to do so to enable the Commission to function effectively.]

26. Panel for appointment of the first banking Directors.

26.—F160[…]

27. Panel for the appointment of banking Directors other than the first such Directors.

27.—F161[…]

28. F162[Filling of vacancies in Commission.

28.—As soon as practicable after an appointed member of the Commission ceases to hold office, the Minister shall appoint a person to fill the vacancy.]

29. Prohibition of certain Directors holding shares in a bank.

29.—F163[…]

30. Operation of disqualification of the Governor or a Director.

30.—F164[…]

31. Oath of secrecy to be taken by the Governor, Directors, and officers.

31.—F165[…]

32. F166[Meetings and procedure of the F167[Commission].

32.—Schedule 1 has effect with respect to meetings and procedure of theF167[Commission].]

33. Compensation and superannuation of Chairman, Commissioners, Governor, and Directors.

33.—F168[…]

F169[PART IIIA Management, Finance, and Accountability Chapter 1A Management] Annotations Amendments: F169 Substituted and inserted (1.10.2010) by Central Bank Reform Act 2010 (23/2010), s. 14(1) and sch. 1, part 1, item 39, S.I. No. 469 of 2010. Editorial Notes: E79 Previous affecting provisions: Part IIIA (ss. 33A-33AM) inserted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 26, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3; substituted (1.10.2010 except s. 32B) by Central Bank Reform Act 2010 (23/2010), s. 14(1) and sch. 1 part 1, item 39, S.I. No. 469 of 2010. The previously inserted ss. 33A-33M and ss. 33N-33V are substituted by the newly numbered ss. 32A-32M. The numbering resumes with ss. 33N-33V, which are effectively deleted.

32A. F169[Framework for assignment of responsibilities.

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