LegalizeCentral Bank Act , 1971
PART I. Preliminary and General
1. Short title, collective citation, construction and commencement.
1.—(1) This Act may be cited as the Central Bank Act, 1971.
(2) The Currency and Central Bank Acts, 1927 to 1964, and this Act shall be construed together as one Act and may be cited together as the Currency and Central Bank Acts, 1927 to 1971.
(3) Save as otherwise specifically provided thereby, this Act shall come into operation on such day as the Minister appoints by order under this section.
2. Definitions.
2.—In this Act—
“the Act of 1927” means the Currency Act, 1927;
“the Act of 1942” means the Central Bank Act, 1942;
F1[“Amsterdam Treaty” means the treaty signed in Amsterdam on 2 October 1997 amending the Treaty on European Union;
“associated company”, in relation to the holder of a licence, means a company in respect of which—
(a)not less than 20 per cent of the nominal value of the company's equity share capital is held by the company, or
(b)not less than 20 per cent of shares carrying voting rights (other than voting rights that arise only in particular circumstances) are so held;]
F2[“the Bank”means the Central BankF3[…]of Ireland;]
“banker's licence” means a licence issued under section 47 of the Act of 1942, and a reference in any statute or instrument under statute to a banker's licence shall be construed as including a reference to a licence;
F4[“banking business”in relation to a person, means any business that consists of or includes—
(a)receiving money on the person’s own account from members of the public either on deposit or as repayable funds, and
(b)the granting of credits on own account,
but does not include such a business in so far as the business consists of or includes—
(i)receiving money on deposit by a trader either from employees of the trader in relation to the trader’s business, or from customers of the trader in the normal course of the trader’s business,
(ii)receiving money in respect of leasing or selling goods under a hire-purchase agreement, a leasing agreement or credit-sale agreement,
(iii)receiving money as security or collateral or as a bond for the repayment of a debt or the performance of a contract related to goods or services,
(iv)receiving money accepted by way of advance or part payment under a contract for the sale, hire or other provision of goods or services, and repayable only in the event that the goods or services are not in fact sold, hired or otherwise provided,
(v)receiving money solely as a premium in respect of the issue or renewal of a life assurance policy issued by a holder of an authorisation under the European Communities (Life Assurance) Regulations 1984 (S.I. No. 57 of 1984),
(vi)receiving money accepted as a contribution within the meaning of the Pensions Acts,
(vii)receiving money where it can be shown that—
(I) no part of the business activities of the person receiving the money or of any other person is financed wholly or substantially out of those funds, and
(II) those funds are, in the normal course of business, accepted only on a casual or incidental basis,
or
(viii)receiving money under financial contracts (within the meaning of the Netting of Financial Contracts Act 1995 (No. 25 of 1995)) (which may include the acceptance of collateral);]
F5[“Capital Requirements Directive” means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013^1on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as amended by—
(a)Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014^2on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010,
(b)Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014^3establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council,
(c)Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015^4on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC,
(d)Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018^5amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU,
(e)Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019^6amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservationF6[measures,]
(f)Directive (EU) 2019/2034 of the European Parliament and Council of 27 November 2019^7on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU andF6[2014/65/EU,]]
F7[(g) Directive (EU) 2021/338 of the European Parliament and of the Council of 16 February 2021^8amending Directive 2014/65/EU as regards information requirements, product governance and position limits, and Directives 2013/36/EU and (EU) 2019/878 as regards their application to investment firms, to help the recovery from the COVID-19 crisis;]
F8[“Capital Requirements Regulation” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 20139on 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 2014^10amending 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 2016^11amending Regulation (EU) No 575/2013 as regards exemptions for commodity dealers,
(c)Commission Delegated Regulation (EU) 2017/2188 of 11 August 2017^12amending 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 2017^13amending 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 2017^14amending Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms,
(f)Commission Delegated Regulation (EU) 2018/405 of 21 November 2017^15correcting 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 2019^16amending 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 2019^17amending 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 2019^18on 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 2020^19amending 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 2019^20amending 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 2021^21amending 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 2021^22on 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 2022^23amending 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 2023^24amending 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 2024^25amending 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 2024^26amending 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;]
F9["Central Bank Acts" means the Central Bank Acts 1942 to 2001, and any enactment amending those Acts;]
“company” means a company incorporated in or outside the State and includes the Bank of Ireland;
F10[“the Court”means, except where the context otherwise requires, the High Court;]
F11[“credit institution” means an undertaking (including an electronic money institution (within the meaning of the European Communities (Electronic Money) Regulations 2002 (S.I. No. 221 of 2002)), but not a credit union or friendly society) whose business consists of, or includes—
(a)receiving deposits or other repayable funds from the public, and
(b)granting credit on its own account;]
F12[“ECB” means the European Central Bank;]
F13[“European Banking Authority” means the authority established pursuant to Regulation (EU) No. 1093/2010^27;]
F14[“European Banking Committee” means the committee established pursuant to Commission Decision 2004/10/EC^28;]
F1[“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 on European Union done at Maastricht on 7 February 1992) to the Rome Treaty;
“functions”, in relation to the Bank, means the functions and duties imposed on the Bank by or under an enactment;]
F15[“general fund” means the fund to which section 63 of the Currency Act, 1927, related and which continues to be kept by the Bank by virtue of section 23 of the Central Bank Act, 1989;
“gold bullion” includes any gold coins other than gold coins which are for the time being legal tender in the State;
“issue”, when used in relation to legal tender notes, includes the re-issue of any such note which has ceased to be outstanding;
“legal tender note” means a legal tender note provided and issued under and in accordance with the Central Bank Acts, 1942 to 1989, and any other enactment amending or extending those Acts or under any Act repealed by the Central Bank Act, 1989;]
“holder”, in relation to a licence, means the person to whom a licence is granted;
F1[“holding company” has the meaning given by section 2 of the Central Bank Act 1942;]
“investment trust company” means a company whose main business consists of the investment of its funds in securities;
F1[“legal practitioner” means a barrister or solicitor;]
F16[“licence”means—
(a)an authorisation granted under the SSM Regulation on the application therefor undersection 9, or
(b)a licence granted undersection 9before the commencement of the European Union (Single Supervisory Mechanism) Regulations 2014 that is deemed, in accordance with the SSM Regulation, to be an authorisation granted by the ECB under that Regulation,
for the time being in force.]
F1[“Maastricht Treaty” means the Treaty on European Union done at Maastricht on 7 February 1992;]
F17[“Markets in Financial Instruments Directive”means Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014^29, as amended by—
(a)Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014^30,
(b)Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016^31,
(c)Directive (EU) 2016/1034 of the European Parliament and of the Council of 23 June 2016^32,
(d)Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019^33,
(e)Regulation (EU) 2019/2115 of the European Parliament and of the Council of 27 November 2019^34,
(f)Directive (EU) 2019/2177 of the European Parliament and of the Council of 18 December 2019^35,
(g)Directive (EU) 2020/1504 of the European Parliament and of the Council of 7 October 2020^36, and
(h)Directive (EU) 2021/338 of the European Parliament and of the Council of 16 February 2021^37;
(i)Regulation (EU) 2022/858 of the European Parliament and of the Council of 30 May 2022^38;
(j)Directive (EU) 2022/2556 of the European Parliament and of the Council of 14 December 2022^39;
(k)Directive (EU) 2023/2864 of the European Parliament and of the Council of 13 December 2023^40;
(l)Directive (EU) 2024/790 of the European Parliament and of the Council of 28 February 2024^41;]
“the Minister” means the Minister for Finance;
F1[“Pensions Acts” means the Pensions Act 1990 as amended from time to time, and includes all Acts that are to be construed together with that Act as one Act;]
F1[“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 of being produced in any form capable of being reproduced visually or aurally;]
F18[“Regulations of 2017”means the European Union (Markets in Financial Instruments) Regulations 2017 (S.I. No. 375 of 2017 );]
F21[…]
F1[“related body”, in relation to the holder of a licence, means—
(a)a subsidiary company of that holder, or
(b)if that holder is itself a subsidiary—
(i) its holding company, or
(ii) any other subsidiary of its holding company, or
(c)an associated company of that holder, or
(d)a partnership in which that holder has an interest, and whose business is or, at any relevant time, was in the Bank's opinion materially relevant to an inspection being carried out, or proposed to be carried out, underF19[Part 3 of the Central Bank (Supervision and Enforcement) Act 2013];]
F20[…]
F1[“Rome Treaty” means the Treaty establishing the European Community done at Rome on 25 March 1957, as amended by the Maastricht Treaty, the Amsterdam Treaty and any other later Treaty on European Union;]
“securities” means—
(a) shares in the share capital of any body corporate or stock of any body corporate or debentures, debenture stock or bonds of any body corporate, whether constituting a charge on the assets of the body or not, or rights or interests (described whether as units or otherwise) in any such shares, stock, debentures, debenture stock or bonds,
(b)securities of the Government or the government of any country or territory outside the State, or
(c)rights (whether actual or contingent) in respect of money lent to, or deposited with, any industrial and provident society, friendly society or building society,
and includes rights or interests (described whether as units or otherwise) which may be acquired under any unit trust scheme under which all property for the time being subject to any trust or other arrangement created or made in pursuance of the scheme consists of such securities as are mentioned in paragraph (a), (b) or (c) of this definition;
F12[“SSM Regulation” means Council Regulation (EU) No. 1024/2013 of 15 October 2013^38conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions;]
F1[“subsidiary company” has the meaning given by section 2 of the Central Bank Act 1942;]
“unit trust scheme” means any arrangements made for the purpose, or having the effect, of providing facilities for the participation by the public, as beneficiaries under a trust or otherwise, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property whatsoever and a reference in this Act to a manager under a unit trust scheme shall be construed as a reference to the person in whom is vested the powers of management relating to property for the time being subject to any trust or other arrangement created or made in pursuance of the scheme.
F22[(1A)F23[In this Act, “competent authority”, “financial holding company”, “group”, “insurance undertaking”, “investment firm”, “management body”, “mixed financial holding company”, “own funds”, “parent undertaking”, and “qualifying holding” each has the meaning assigned to it by Regulation 3 of the European Union (Capital Requirements) Regulations 2014.]]
F24[(2)F25[…]]
3. Expenses.
3.—The expenses incurred by the Minister in the administration of this Act shall be paid out of moneys provided by the Oireachtas.
4. Laying of orders and regulations before Houses of the Oireachtas.
4.—Every order and regulation made by the Minister or the Bank under this Act shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the order or regulation is passed by either such House within the next twenty-one days on which that House has sat after the order or regulation is laid before it, the order or regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
5. Repeals.
5.—The enactments mentioned in the second column of the Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule.
6. Transitional provision.
6.—A banker's licence in force immediately before the commencement of this section shall continue in force during the period from such commencement
(a) to the date of the grant of a licence to the holder of the banker's licence,
(b) to the 31st day of December immediately following such commencement, or
(c) if the banker's licence is revoked, to the date of the revocation,
whichever shall first occur, and the provisions of this Act shall apply during the period aforesaid in relation to the holder and the banker's licence as if the holder were the holder of a licence and the banker's licence were a licence.
PART II Licensing and Supervision of Banks
7. Restriction on carrying on of banking business.
7.—F26[(1) Subject to the provisions of this Act, a person, other than the Bank, shall not, in or outside the State, carry on banking business or hold himself out or represent himself as a banker or as carrying on banking business orF27[…]accept deposits or other repayable funds from the public, unless he is the holder of a licenceF28[or authorisation undersection 9A].]
(2)For the purposes of this Act a person shall (save as is otherwise provided by this Act) be deemed to hold himself out as a banker
(a) if, being a body corporate carrying on any business, the name of the body includes any of the words “bank”, “banker” or “banking” or any word which is a variant, derivative or translation of or is analogous to any of those words, or
(b) if, being an individual, he carries on any business under a name or title (other than his own name without any addition thereto) which includes any of the words “bank”, “banker” or “banking” or any word which is a variant, derivative or translation of or is analogous to any of those words, or
(c) if, being an unincorporated body of persons carrying on any business, the name under which the body carries on that business (not being in the case of a partnership the name or names of one or more of the partners without any addition thereto) includes any of the words. “bank”, “banker” or “banking” or any word which is a variant, derivative or translation of or is analogous to any of those words, or
(d) in any case, if by the use, in an advertisement, circular, business card or other document, of any of the words “bank”, “banker” or “banking” or any word which is a variant, derivative or translation of any of those words or any word or phrase analogous thereto, he holds himself out or represents himself as conducting or being willing to conduct banking business.
(3) Subsection (1) of this section shall not apply during such period as may be determined by the Bank to a person who holds himself out as a banker but is not carrying on banking business and who held a banker's licence in force immediately before the commencement of this section or a licence which has been revoked.
F29[(4)Subsection (1)does not apply in relation to—
(a) the central bank of another member state of the European Communities that is a member of the European Central Bank, or
(b) the Post Office Savings Bank, or
(c) a trustee savings bankF30[licensed under section 10 of the Trustee Savings Banks Act 1989], or
(d) a building societyF30[authorised under section 17 of the Building Societies Act 1989]or aF31[credit union.]
(e)F32[…]
(f)F32[…]]
F33[(4A)Subsection (1)shall not apply where—
(a) the person accepting deposits or other repayable funds from the public is not a credit institution,
(b) the person is—
(i) a manager, trustee or custodian of a unit trust or a collective investment undertaking or an entity that provides services to such an undertaking,
(ii) another member state of the European Union, a regional or local authority of such a state, or a public international organisation of which one or more member states of the European Union are members, or
(iii) a case covered expressly by European Union law, and
(c) the acceptance of deposits or other repayable funds from the public by the person is subject to regulation and controls intended to protect depositors and investors.]
F34[(5)F35[…]]
F34[(6)Subsection (1)does not apply to a person who acts on behalf of—
(a) the Bank, or
(b) the holder of a licenceF28[or authorisation undersection 9A], or
(c) a body or person referred to insubsection (4), or
(d) a credit institution or financial institution that is permitted by theF30[European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014)]to carry on business within the State, but only so long as the institution complies with all conditions imposed on such an institution by those Regulations and by or under an Act.]
8. Exemption of persons from section 7.
8.— F36[(1) (a) Where, by reason only of a person's use in a name or title of any of the words “bank”, “banker” or “banking” or any word which is a variant, derivative or translation of or is analogous to any of those words, the person would be deemed to be holding himself out as a banker, the Bank may exempt the person from the provisions of section 7 of this Act if, in the opinion of the Bank, the person does not in fact carry on or propose to carry on banking business and does not otherwise hold himself out or represent himself as a banker or as carrying on banking business.
(b) The Bank may at any time revoke an exemption under this subsection where it is of the opinion that at any time after being exempted the person concerned has carried on banking business or otherwise has held himself out or represented himself as a banker or as carrying on a banking business and, upon the exemption being so revoked, that person shall forthwith take all necessary measures to cease using the name or title concerned containing the word to which the revoked exemption related.
F37[(2) The Bank may exempt a specified person, or the members of a specified class of persons, from being required to hold a licence where the requirement would arise only from the creation of securities or other obligations to which the definition of “banking business” relates, but only if the Bank is satisfied that the granting of the exemption would be consistent with the proper and orderly regulation of banking.
(2A) An exemption granted under this section is subject to such conditions as the Bank thinks fit to impose.
(2B) The Bank shall revoke an exemption granted under this section if satisfied—
(a) that the circumstances relevant to the exemption have changed and are now such that the exemption would no longer be granted, or
(b) that a condition of the exemption is not being, or has not been, substantially complied with.
(2C) The Bank shall publish in Iris Oifigiúil a notice of every exemption and revocation under this section.]]
9. Grant of licences.
9.—F38[(1) Subject tosections 9Hto9J, the Bank shall, either—
(a) if it is satisfied that the conditions referred to in sections 9D to 9G have been complied with, take a draft decision to propose to the ECB to grant a licence to a person applying to it for the grant thereof authorising the holder to carry on banking business, or
(b) if it is not so satisfied, reject the application.]
F39[(1A)F40[…]]
(2) F40[…]
(3) F40[…]
(4) An application for a licence shall be in such form and contain such particulars as the Bank may from time to time determine.
(5) The grant of a licence to a person shall not constitute a warranty as to the solvency of the person to whom it is granted and the Bank shall not be liable in respect of any losses incurred through the insolvency or default of a person to whom a licence is granted.
F41[(6)F42[…]]
F43[(7) References (howsoever expressed) in any enactment (including this Act) to a licence granted under this section shall on and after 4 November 2014 be construed as references to a licence granted or deemed to be granted by the ECB under the SSM Regulation on the application therefor under this section.
(8) In this section “enactment” has the same meaning as it has in the Interpretation Act 2005.]
9A. F44[Authorisation of third country branches.
9A.—(1)F45[In this section andsections 9B,9Cand9CA]—
“branch” means a branch of a relevant credit institution;
“EEA Agreement” has the same meaning as it has in the European Communities (Amendment) Act 1993;
“EEA state” means—
(a) a member state of the European Communities, or
(b) a state (other than a member state of the European Communities) that is a contracting party to the EEA Agreement;
“relevant credit institution” means a credit institution whose head office is located in a state or territory other than an EEA state and which holds an authorisation to carry on banking business in that state or territory from the authority that exercises in that state or territory functions corresponding to those of the Bank under this Part (“relevant third country authority”).
(2) Subject to the provisions of this section, the Bank may grant an authorisation to a relevant credit institution to operate a branch in the State for the purpose of carrying on banking business in the State.
(3) The Bank shall not grant an authorisation undersubsection (2)unless it is satisfied that—
(a) the relevant credit institution is subject, in the state or territory where its head office is located, to regulatory or administrative provisions relating to authorisation to carry on banking business in that state or territory and supervision corresponding to those in the State, and
(b) protection of deposits with the branch, corresponding to the protection provided by the European Communities (Deposit Guarantee Schemes) Regulations 1995 (S.I. No. 168 of 1995), is available to depositors.
(4) An application for authorisation undersubsection (2)shall be in such form and contain such information as the Bank may from time to time determine.
F45[(5) The Bank shall notify the European Banking Authority of the following:
(a) the authorisations granted undersubsection (2)for branches and any subsequent changes to such authorisations;
(b) the total assets and liabilities of the branches in respect of which an authorisation has been granted undersubsection (2), as periodically reported;
(c) the name of the third-country group to which a branch, in respect of which an authorisation has been granted, belongs.]
(6) The grant of an authorisation undersubsection (2)shall not constitute a warranty as to the solvency of the relevant credit institution to which it is granted and the Bank shall not be liable in respect of any losses incurred through the insolvency or default of a relevant credit institution to which such authorisation is granted.]
9B. F46[Refusal to grant an authorisation under section 9A.
9B.—(1) The Bank shall not refuse to grant an authorisation undersection 9A(2)unless it is satisfied that the grant of the authorisation would not be in the interest of the orderly and proper regulation of banking.
(2) Whenever the Bank proposes to refuse to grant an authorisation undersection 9A(2)it shall—
(a) within the period of 6 months after the date of the receipt of the application for the authorisation, or
(b) where additional information in relation to the application has been sought by the Bank, within the period of 6 months after the date of the receipt by the Bank of the additional information or the period of 12 months after the date of the receipt of the application for the authorisation whichever period first expires,notify the applicant for the authorisation in writing of its reasons for the refusal and the applicant may, within the period of 21 days after the date of the giving of the notification, make representations in writing to the Bank in relation to the proposed refusal.
(3) The Bank shall, before deciding to refuse the authorisation, consider any representations duly made to it undersubsection (2)in relation to the proposed refusal.]
9C. F47[Revocation of authorisations granted under section 9A.
9C.— (1) The Bank may revoke an authorisation granted undersection 9A(2)—
(a) if the holder of the authorisation so requests,
(b) if the holder of the authorisation—
(i) has not commenced to carry on banking business pursuant to the authorisation within 12 months of the date on which the authorisation was granted,
(ii) has ceased to carry on banking business pursuant to the authorisation and has not carried it on during a period of more than 6 months immediately following the cesser,
(iii) has obtained the authorisation through false statements or any other irregular means,
(iv) becomes unable to meet its obligations to its creditors or suspends payments lawfully due by it or can no longer be relied upon to fulfil its obligations towards its creditors, and in particular no longer provides security for the assets entrusted to it,
(v) is convicted on indictment of an offence under any provision of this Act or an offence involving fraud, dishonesty or breach of trust, or
(vi) being a company, is being wound up,
(c) where the holder of the authorisation no longer holds an authorisation from the relevant third country authority to carry on banking business in the state or territory where its head office is located,
(d) if the business of, or the corporate structure of, the holder of the authorisation has been so organised or the holder of the authorisation has come under the control of any other undertaking not supervised by the Bank such that the holder is no longer capable of being supervised to the satisfaction of the Bank, or
(e) if, since the grant of the authorisation, the circumstances relevant to the grant have changed and are such that, if an application for an authorisation were made in the changed circumstances, it would be refused.
(2) Whenever the Bank proposes to revoke an authorisation undersubsection (1)(otherwise than in circumstances to whichparagraph (a)ofsubsection (1)relates)—
(a) it shall notify the holder of the authorisation in writing of the reasons for the revocation and that the holder may, within 21 days after the date of the giving of the notification, make representations in writing to the Bank in relation to the proposed revocation,
(b) the holder of the authorisation may make such representations in writing to the Bank within the period referred to inparagraph (a), and
(c) the Bank shall, before deciding whether or not to revoke the authorisation, consider any representations duly made to it under this subsection in relation to the proposed revocation.
(3) Where an authorisation is revoked undersubsection (1)and the holder of the authorisation is not a company which is being wound up—
(a) that person shall continue to be subject to the duties and obligations imposed on it by or under the Central Bank Acts 1942 to 2013 until all liabilities of that person in respect of deposits (including deposits on current accounts) or other repayable funds accepted by it from persons (in this subsection referred to as “depositors”) pursuant to the authorisation have been discharged to the satisfaction of the Bank,
(b) that person shall, as soon as possible after the authorisation is revoked—
(i) notify the Bank, and
(ii) as far as is reasonably practicable, notify every depositor concerned,of the measures it is taking or proposes to take to discharge in full and without undue delay its liabilities in respect of those deposits,
(c) in the case where—
(i) that person has notified the Bank in accordance withparagraph (b)and the Bank is of the opinion that the measures being taken or proposed to be taken for the purposes of that paragraph are not satisfactory, or
(ii) that person has not so notified the Bank and the Bank is of the opinion that it has failed to so notify as soon as possible after the authorisation is revoked, or
(iii) the Bank is of the opinion that that person has not taken all reasonable steps to so notify every depositor concerned,
then the Bank may give a direction in writing to that person for such period, not exceeding 6 months, as may be specified therein, prohibiting it from—
(I) dealing with or disposing of any of its assets or specified assets in any manner, or
(II) engaging in any transaction or class of transaction or specified transaction, or
(III) making payments,without the prior authorisation of the Bank, and the Bank may require that person to prepare and submit to it for its approval within 2 months of the direction, a scheme for the orderly discharge in full of its liabilities to the depositors concerned.
(4) Where a direction to whichsubsection (3)(c)relates is given the provisions of section 21 shall apply with any necessary modifications.
(5) The Bank shall, before deciding to revoke an authorisation undersubsection (1), consult with the relevant third country authority provided however that if immediate action by the Bank is called for it shall not be necessary for the Bank to consult as aforesaid but in such a case the Bank shall notify the authority concerned of the revocation of the authorisation.
(6) In this section “control” includes any power, whether arising from a contract or agreement or otherwise, whereby one party can direct the affairs of another and a parent undertaking shall be deemed to control its subsidiaries and "parent undertaking" has the meaning assigned to it by the European Communities (Companies: Group Accounts) Regulations 1992 (S.I. No. 201 of 1992).]
9CA. F48[Third country branch reporting.
9CA.—(1) Subject tosubsection (2), a branch shall report the following information to the Bank on an annual basis:
(a) the total assets corresponding to the activities of the branch;
(b) information on the liquid assets available to the branch, including the availability of liquid assets in EEA state currencies;
(c) the own funds that are at the disposal of the branch;
(d) the deposit protection arrangements available to depositors in the branch;
(e) the risk management arrangements;
(f) the governance arrangements, including key function holders for the activities of the branch;
(g) the recovery plans covering the branch;
(h) any other information considered by the Bank to be necessary to enable comprehensive monitoring of the activities of the branch.
(2) The Bank may direct a branch to report the information required undersubsection (2)more frequently than is provided for in that subsection where such a direction is necessary to ensure effective supervision of the branch.]
9CB. F49[Cooperation with competent authorities.
9CB.—Where—
(a) a branch of a credit institution which is part of a third-country group and has its head office in a third country is supervised by a competent authority in an EEA member state (in this section referred to as “a third-country group branch competent authority”),
(b) an institution in the third-country group is supervised by a competent authority in another EEA member state (in this section referred to as “a third-country group credit institution competent authority”), and
(c) the Bank is either a third country group branch competent authority or a third-country group credit institution competent authority,
the Bank shall cooperate closely with all third country branch competent authorities and third-country group credit institution competent authorities—
(i) to ensure that all activities of that third-country group in the European Union are subject to comprehensive supervision,
(ii) to prevent the requirements applicable to third-country groups pursuant to the Capital Requirements Directive and the Capital Requirements Regulation from being circumvented, and
(iii) to prevent any detrimental impact on the financial stability of the European Union.]
9D. F50[Programme of operations and structural organisation.
F51[9D.—(1) An application for a licence shall be accompanied by—
(a) a programme of operations, and
(b) a description of the arrangements, processes and mechanisms referred to in Regulation 61(1) of the European Union (Capital Requirements) Regulations 2014 proposed to be implemented.
(2) A programme of operations referred to insubsection (1)(a)shall—
(a) set out the types of business envisaged by the applicant,
(b) set out the structural organisation of the credit institution in respect of which the application is being made, and
(c) where the credit institution is part of a group, specify—
(i) the parent undertakings,
(ii) the financial holding companies, if any, and
(iii) the mixed financial holding companies, if any,
within the group.
(3) The Bank shall not take a draft decision to propose to the ECB to grant a licence unless it is satisfied that the arrangements, processes and mechanisms referred to in Regulation 61 of the European Union (Capital Requirements) Regulations 2014 proposed to be implemented would, if implemented, enable sound and effective risk management by that institution.]]
9E. F52[Initial capital.
9E.—(1) Subject tosubsection (3), the Bank shall notF53[take a draft decision to propose to the ECB to grant a licence]unless the applicant holds separate own funds, or has an initial capital, of at least €5,000,000.
(2) Initial capital shall comprise only one or more of the items referred to in Article 26(1)(a) to (e) of the Capital Requirements Regulation.
(3) The Bank mayF53[take a draft decision to propose to the ECB to grant a licence]to particular categories of credit institutions the initial capital of which is less than €5,000,000, subject to the following conditions:
(a) the applicant has an initial capital of at least €1,000,000;
(b)F54[…]]
9F. F55[Effective direction of business and place of head office.
9F.—The Bank shall notF56[take a draft decision to propose to the ECB to grant a licence]unless the applicant satisfies the Bank that—
(a) it is a body corporate,
(b) its registered office and its head office are both located in the State,
(c) at least 2 persons effectively direct its business, and
(d) the members of its management body meet the requirements of Regulation 79 of the European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014).]
9FA. F57[Precondition for draft decision to propose licence.
9FA.(1) Where an applicant intends to provide investment services or perform investment activities, the Bank shall not take a draft decision to propose to the ECB to grant a licence unless it is satisfied that the applicant will comply with the relevant provisions.
(2) In this section—
“investment activities” has the same meaning as it has in the Markets in Financial Instruments Directive;
“investment services” has the same meaning as it has in the Markets in Financial Instruments Directive;
“relevant provisions” means the provisions of the Regulations of 2017 which apply under Regulation 2(2) of those Regulations.]
9G. F58[Shareholders and members.
9G.—(1) The Bank shall notF59[take a draft decision to propose to the ECB to grant a licence]unless the application for the licence includes the names of—
(a) the applicant’s shareholders or members that have qualifying holdings and of the amounts of those holdings, or
(b) where there are no qualifying holdings, the 20 largest shareholders or members.
(2) In determining whether the criteria for a qualifying holding are fulfilled, the voting rights referred to in Articles 9 and 10 of Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004^39in relation to information about issuers whose securities are admitted to trading on a regulated market and the conditions regarding aggregation thereof set out in Article 12(4) and (5) of that Directive shall be taken into account.
(3) Voting rights or shares which institutions hold as a result of providing the underwriting of financial instruments or placing of financial instruments on a firm commitment basis included under point 6 of Section A of Annex I to Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004^40shall not be taken into account provided that those rights are not exercised or otherwise used to intervene in the management of the issuer and are disposed of within one year of acquisition.
F60[(4) The Bank shall not take a draft decision to propose to the ECB to grant a licence if, taking into account the need to ensure the sound and prudent management of a credit institution, it is not satisfied, having regard to the criteria specified insection 9GA(1), as to the suitability of the shareholders or members.]
(5) Where close links exist between the credit institution and other natural or legal persons, the Bank shallF59[take a draft decision to propose to the ECB to grant a licence]only where those links do not prevent the effective exercise of its supervisory functions.
(6) The Bank shall notF59[take a draft decision to propose to the ECB to grant a licence]where the laws, regulations or administrative provisions of a third country governing one or more natural or legal persons with which the credit institution has close links, or difficulties involved in the enforcement of those laws, regulations or administrative provisions, prevent the effective exercise of its supervisory functions.
(7) The Bank shall require credit institutions to provide it with the information they require to monitor compliance with the conditions referred to insubsections (5)and(6)on an ongoing basis.]
9GA. F61[Assessment of suitability of shareholders or members.
9GA.—(1) The criteria referred to insection 9G(4)are as follows:
(a) the reputation of the shareholders or members of the credit institution;
(b) the reputation, knowledge, skills and experience, as specified in Regulation 79 of the European Union (Capital Requirements) Regulations 2014, of any member of the management body who will direct the business of the shareholders or members of the credit institution;
(c) the financial soundness of the credit institution, in particular in relation to the type of business pursued and envisaged in the credit institution;
(d) whether the credit institution will be able to comply and continue to comply with the prudential requirements of the European Union (Capital Requirements) Regulations 2014 and the Capital Requirements Regulation, and where applicable, other European Union law, in particular Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002^41and Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009,^42including, where applicable, whether the group of which it is a part has a structure that makes it possible to exercise effective supervision, effectively exchange information among the competent authorities of relevant Member States and determine the allocation of responsibilities among the competent authorities of relevant Member States;
(e) whether there are reasonable grounds to suspect that, in connection with the proposed authorisation, money laundering or terrorist financing within the meaning of Article 1 of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005^43on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing is being or has been committed or attempted, or that the proposed authorisation could increase the risk thereof.
(2) In carrying out its assessment of the suitability of the shareholders or members, the Bank shall consult with the competent authorities of other relevant Member States if one or more of the shareholders or members is—
(a) a credit institution, insurance undertaking, reinsurance undertaking, investment firm, or a management company within the meaning of Article 2(1)(b) of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009^44(in this subsection referred to as a “UCITS management company”) authorised in another Member State,
(b) the parent undertaking of a credit institution, insurance undertaking, reinsurance undertaking, investment firm or UCITS management company authorised in another Member State, or
(c) a natural or legal person controlling a credit institution, insurance undertaking, reinsurance undertaking, investment firm or UCITS management company authorised in another Member State.
(3) The Bank shall, without undue delay, provide competent authorities in other Member States with any information that is essential or relevant for the assessment of the shareholders or members.
(4) The Bank shall, for the purposes ofsubsection (3), communicate all relevant information upon request and all essential information on its own initiative.
(5) A draft decision taken by the Bank to propose to the ECB to grant a licence shall indicate any views or reservations expressed by the competent authorities responsible for the shareholder or member concerned.
(6) In this section, “reinsurance undertaking” has the meaning assigned to it in point (6) of Article 4(1) of the Capital Requirements Regulation.]
9H. F62[Waiver for credit institutions permanently affiliated to central body.
9H.—(1) The Bank may waive the requirements set out insections 9D,9Eand9F(c)and(d)with regard to a credit institution referred to in Article 10 of the Capital Requirements Regulation in accordance with the conditions set out therein.
(2) Where the Bank exercises a waiver referred to inparagraph (1)—
(a) Regulation 7,
(b) Regulations 32 and 33,
(c) Regulation 35(1) to (3),
(d) Regulations 38 to 44,
(e) Regulations 61 to 84, and
(f) Regulations 115 to 130,
of the European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014) shall apply to the whole as constituted by the central body together with its affiliated institutions.]
9I. F63[Refusal of authorisation.
9I.—(1) Where the BankF64[rejects an application], it shall notify the applicant of the decision and the reasons therefor within 6 months of receipt of the application or, where the application is incomplete, within 6 months of receipt of the complete information required for the decision.
(2) The Bank shall, in any event,F64[take a draft decision to propose to the ECB to grant a licence or reject the application]within 12 months of the receipt of the application.]
F65[(3) A decision under this section toF64[reject an application]is an appealable decision for the purposes of Part VIIA of the Act of 1942.]
F66[(4) A failure by the Bank to notify an applicant within 6 months of receipt of an application or, where an application is incomplete, within 6 months of receipt of the complete information required, in accordance withsubsection (1), is an appealable decision for the purposes of Part VIIA of the Act of 1942.]
F67[(5) The Bank may reject an application only if—
(a) there are reasonable grounds for doing so on the basis of the criteria specified in section 9GA(1), or
(b) the information provided by the applicant is incomplete.
(6) The Bank shall not assess an application in terms of the economic needs of the market.]
9J. F68[Prior consultation of competent authorities
9J.—(1) The Bank shall consult the competent authorities of another Member State beforeF69[taking a draft decision to propose to the ECB to grant a licence]where the credit institution is—
(a) a subsidiary of a credit institution authorised in that other Member State,
(b) a subsidiary of the parent undertaking of a credit institution authorised in that other Member State, or
(c) controlled by the same natural or legal persons as those who control a credit institution authorised in that other Member State.
(2) The Bank shall, beforeF69[taking a draft decision to propose to the ECB to grant a licence], consult the competent authority that is responsible for the supervision of insurance undertakings or investment firms in the Member State concerned where the credit institution is—
(a) a subsidiary of an insurance undertaking or investment firm authorised in the European Union,
(b) a subsidiary of the parent undertaking of an insurance undertaking or investment firm authorised in the European Union, or
(c) controlled by the same natural or legal persons as those who control an insurance undertaking or investment firm authorised in the European Union.
(3) The Bank shall in particular—
(a) consult, in accordance withparagraphs (1)and(2), when assessing the suitability of the shareholders and the reputation and experience of members of the management body involved in the management of another entity of the same group, and
(b) exchange with the competent authorities of other Member States any information regarding the suitability of shareholders and the reputation and experience of members of the management body which is of relevance for the granting of an authorisation and for the ongoing assessment of compliance with operating conditions.]
10. Conditions of licences.
F70[10.—(1) Subject tosubsections (2)and(2A)of this section, a licence or an authorisation undersection 9A(2)shall be subject to such conditions, if any, as—
(a) in the case of a licence, the ECB may impose and specify at the time of the grant thereof following a proposal by the Bank, being conditions which in the opinion of the Bank are calculated to promote the orderly and proper regulation of banking,
(b) in the case of an authorisation undersection 9A(2), the Bank may impose and specify at the time of the grant thereof, being conditions which in the opinion of the Bank are calculated to promote the orderly and proper regulation of banking.
(2) The Bank may, in the case of a licence, propose to the ECB that the conditions of a licence be amended, revoked or added to and it may propose to the ECB that conditions be imposed by the ECB in relation to a licence from time to time if in the opinion of the Bank the amendment, revocation, addition or imposition is calculated to promote the orderly and proper regulation of banking.
(2A) The conditions of an authorisation undersection 9A(2)may be amended, revoked or added to and conditions may be imposed in relation to an authorisation undersection 9A(2)from time to time by the Bank if in the opinion of the Bank the amendment, revocation, addition or imposition is calculated to promote the orderly and proper regulation of banking.
(3) Whenever the Bank proposes that a condition be imposed in relation to a licence or authorisation undersection 9A(2)or that the conditions of a licence be added to or amended-
(a) it shall notify in writing the person who holds the licence or authorisation undersection 9A(2)or to whom the licence is intended to be granted that it proposes to impose a condition in relation to the licence or authorisation undersection 9A(2)or to amend or add to the conditions of the licence or authorisation undersection 9A(2), as the case may be, and of its reasons for so proposing and that the person may, within twenty-one days after the date of the giving of the notification, make representations in writing to the Bank in relation to the proposed imposition, amendment or addition, as the case may be, and shall specify in the notification, the condition or the amendment or addition, as the case may be,
(b) the person may make such representations to the Bank within the time aforesaid, and
(c) the Bank shall—
(i) in the case of a licence, before deciding to propose to the ECB to impose the condition or amend or add to the conditions of the licence, as the case may be, consider any representations duly made to it under this subsection in relation to the proposed imposition, amendment or addition, as the case may be, and where, after so considering, the Bank decides to propose an imposition, amendment or addition, as the case may be, that differs from that specified in the notification concerned, it shall not be necessary to give a new notification under this subsection if the difference results in the condition concerned being no more onerous than would be the case had the Bank decided to propose to the ECB to impose the condition or amend or add to the conditions of the licence, as the case may be, in accordance with the notification concerned, or
(ii) in the case of an authorisation undersection 9A(2), before deciding to impose the condition or amend or add to the conditions of an authorisation under section 9A(2), as the case may be, consider any representations duly made to it under this subsection in relation to the imposition, amendment or addition, as the case may be, and where, after so considering, the Bank decides on an imposition, amendment or addition, as the case may be, that differs from that specified in the notification concerned, it shall not be necessary to give a new notification under this subsection if the difference results in the condition concerned being no more onerous than would be the case had the Bank decided to impose the condition or amend or add to the conditions of the authorisation undersection 9A(2), as the case may be, in accordance with the notification concerned.]
11. Revocation of licences.
F71[11.—(1) The Bank may—
(a) F72[submit a proposal to the ECB to withdraw a licence] if the holder of the licence so requests,
(b) F72[submit a proposal to the ECB to withdraw a licence] if the holder of the licence—
(i) (I) has not commenced to carry on banking business within twelve months of the date on which the licence was granted, or
(II) has ceased to carry on banking business and has not carried it on during a period of more than six months immediately following the cesser,
(ii) being a company, is being wound up,
(iii) is a credit institution to which F73[section 9F(b) of this Act] relates, which is being duly wound up or otherwise dissolved,
(iv) has obtained the licence through false statements or any other irregular means,
(v) becomes unable to meet his obligations to his creditors or suspends payments lawfully due by him or no longer possesses sufficient own funds (being own funds to which Council Directive 77/780/EEC of 12 December, 1977, relates) or can no longer be relied upon to fulfil his obligations towards his creditors, and in particular no longer provides security for the assets entrusted to him,
(vi) fails to maintain a deposit in the Bank of an amount determined in accordance with section 55 of the Central Bank Act, 1989,
(vii) is convicted on indictment of an offence under any provision of this Act or an offence involving fraud, dishonesty or breach of trust,
(viii) has his head office in another state that is a member of the European Communities and the authority in that state that exercises in that state functions corresponding to those of the Bank under this Chapter has withdrawn authorisation from the institution of which the holder is a branch,
F74[(ix) no longer fulfils the conditions under which the licence was granted,
(x) no longer meets the prudential requirements—
F75[(I) set out in Part Three (other than Articles 92a and 92b), Four or Six of the Capital Requirements Regulation, or]
(II) imposed under Regulation 92(2)(a) or 93 of the Capital Requirements Directive, or can no longer be relied on to fulfil its obligations towards its creditors, and, in particular, no longer provides security for the assets entrusted to itF76[by its depositors,]
(xi) commits one of the breaches referred to in Regulation 55 of the European Union (Capital Requirements) Regulations 2014F76[(S.I. No. 158 of 2014), or]]
F77[(xii) uses its licence exclusively to engage in the activities referred to in point (1)(b) of Article 4(1) of the Capital Requirements Regulation and has, for a period of five consecutive years, average total assets below the thresholds set out in that Article.]
F78[(bb)F72[submit a proposal to the ECB to withdraw a licence]if the business of, or the corporate structure of, the holder of the licence has been so organised or the holder of the licence has come under the control of any other undertaking not supervised by the Bank such that the holder is no longer capable of being supervised to the satisfaction of the Bank.]
(c) F72[submit a proposal to the ECB to withdraw a licence] if, since the grant of the licence, the circumstances relevant to the grant have changed and are such that, if an application for a licence were made in the changed circumstances, it would be refused.
(2) Whenever the Bank proposes to F72[submit a proposal to the ECB to withdraw a licence] (other than in circumstances to which paragraph (a) or (b)(viii) of subsection (1) of this section relate)—
(a) it shall notify the holder in writing F79[…] of the F72[reasons for the withdrawal] and that the holder may, within twenty-one days after the date of the giving of the notification, make representations in writing to the F72[Bank] in relation to the F72[proposed withdrawal],
(b) the holder may make such representations in writing to the F72[Bank] within the time aforesaid, and
(c) the F72[Bank] shall F79[…] consider any representations duly made to F72[it] under this subsection in relation to the F72[proposed withdrawal].
F74[(2A)F79[…]]
(3) Where a F72[licence is withdrawn by the ECB] and the person who was the holder of the licence is not a company which is being wound up—
(a) that person shall continue to be subject to the duties and obligations imposed on him by or under the Central Bank Acts, 1942 to 1989, until all liabilities of that person in respect of deposits (including deposits on current accounts) or other repayable funds accepted by him from persons (in this subsection referred to as depositors) have been discharged to the satisfaction of the Bank,
(b) that person shall, as soon as possible after the F72[licence is withdrawn by the ECB]—
(i) notify the Bank and
(ii) as far as is reasonably practicable, notify every depositor concerned,
of the measures he is taking or proposes to take to discharge in full and without undue delay his liabilities in respect of those deposits,
(c) in the case where—
(i) that person has notified the Bank in accordance with paragraph (b) of this subsection and the Bank is of the opinion that the measures being taken or proposed to be taken for the purposes of that paragraph are not satisfactory, or
(ii) that person has not so notified the Bank and the Bank is of the opinion that he has failed to so notify as soon as possible after the F72[licence is withdrawn by the ECB], or
(iii) the Bank is of the opinion that that person has not taken all reasonable steps to so notify every depositor concerned,
then the Bank may give a direction in writing to that person for such period, not exceeding six months, as may be specified therein, prohibiting him from—
(I) dealing with or disposing of any of his assets or specified assets in any manner, or
(II) engaging in any transaction or class of transaction or specified transaction, or
(III) making payments,
without the prior authorisation of the Bank, and the Bank may require that person to prepare and submit to it for its approval within two months of the direction, a scheme for the orderly discharge in full of his liabilities to the depositors concerned,
(d) where a direction to which this subsection relates is given the provisions of section 21 of this Act shall apply with any necessary modifications.
(4) (a) Where a F72[a licence is withdrawn by the ECB] and the holder of the licence is a company which is being wound up, the liquidator of the company shall, in addition to his duties and obligations in respect of the winding up, be subject to the duties and obligations to which the company would be subject were it a company to which subsection (3) of this section relates and that subsection shall, for the purposes of this subsection, be construed accordingly.
(b) Notwithstanding paragraph (a) of this subsection, the Bank may, F72[where the ECB withdraws a licence and the Bank] considers it appropriate in the circumstances, remove in writing the duty and obligation imposed on the liquidator concerned to comply with paragraph (b) (as construed by this subsection) of subsection (3) of this section and may impose in writing on that liquidator such further or other duty and obligation which corresponds to that set out in the said paragraph (b).
(5) If the holder of a licence—
(a) has his head office in another state that is a member of the European Communities, or
(b) carries on banking business through a branch established in another such state,
the Bank shall, before deciding to F72[submit a proposal to the ECB to withdraw a licence], consult with the authority in that state that exercises in that state functions corresponding to those of the Bank under this Part:
Provided however that if immediate action by the Bank is called for it shall not be necessary for the Bank to consult as aforesaid but in such a case the Bank shall notify the authority concerned of the F72[withdrawal of the licence].]
F80[(6) In this section—
(a) an undertaking shall be treated as a fellow subsidiary of another undertaking if both are subsidiaries of the same undertaking but neither is a subsidiary of the other undertaking,
(b) “subsidiary undertaking” shall be construed in accordance with Regulation 4 of the European Communities (Companies: Group Accounts) Regulations 1992 (S.I. No. 201 of 1992 ) and, in relation to an undertaking incorporated in, or formed under the law of another, Member State, means any undertaking which is a subsidiary undertaking within the meaning of any rule or law in force in that State for the purposes of giving effect to Council Directive No. 83/349/EEC of 13 June 1983^45,
(c) “control” has the meaning it has in the European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014), and
(d) “associated undertaking” has the meaning it has in the European Communities (Companies: Group Accounts) Regulations, 1992 (S.I. No. 201 of 1992).]
F81[(7)F79[…]]
F82[(8)F79[…]]
12. Publication of names of holders of licences and notices of revocation of licences.
12.—(1) The Bank shall publish from time to time, but not less frequently than once a year, in such manner as it thinks fit the names of the holders of licences F83[and of the holders of authorisations undersection 9A].
F84[(2)The Bank shall as soon as may be after the revocation of a licenceF83[or authorisation undersection 9A], publish notice of the revocation in such manner as it thinks fit. It shall notify any such revocation to the European Commission,F83[European Banking Committee]and to the European Banking Authority.
(3) The Bank shall keep each of the following informed of the names of the holders of licencesF83[and of the holders of authorisations undersection 9A], that is to say:
(a) the Registrar of the Supreme Court;
(b) the officer for the time being managing the Central Office of the High Court;
(c) every County Registrar;
(d) every District Court Clerk;
F83[(dd) the European Banking Committee;]
(e) the European Banking Authority.]
13. Deposits at Bank for purposes of licences.
13.— (1) The amount of a deposit maintained by a holder of a licence in the Bank pursuant to section 7 of this Act (in this section referred to as the deposit) shall be five per cent of the total deposits (including deposits on current accounts) at offices in the State of the holder but shall not be less than £20,000 nor more than £500,000.
(2) The amount of the deposit shall be calculated by the Bank as soon as may be after the commencement of this section or at the time of the application for the licence as may be appropriate and shall be re-calculated twice yearly (at intervals which, in so far as is practicable, are of equal length) by reference to returns made by the holder of the licence to the Bank under section 18 of this Act.
(3) The amount of the deposit shall, where necessary, be increased to the appropriate amount re-calculated under subsection (2) of this section by the holder of the licence concerned not later than seven days after the date of the receipt by him of notification from the Bank of the amount required to effect the increase.
(4) The Bank may settle the amount of the deposit at the nearest round figure in hundreds of pounds.
(5) The deposit shall carry interest at such a rate (not being less than the Bank's minimum rediscount rate for the time being for exchequer bills fixed and published by it under section 7(1)(g) of the Act of 1942) and payable in such manner and at such times as may be determined by the Bank from time to time.
(6) Any charge purported to be created on the deposit shall be void.
(7) Notwithstanding anything contained in this Act, where the nominal value of the issued capital in stock or shares of a business
(a) to which a licence relates or in relation to which it is proposed to grant a licence, and
(b) in relation to which a banker's licence was in force immediately before the commencement of this section,
does not exceed fifteen thousand pounds, the deposit under section 7 of this Act may, subject to the consent of the Bank and to such conditions as the Bank may impose, be made wholly or partly by depositing with the Bank securities which are equal in value to the amount of the deposit under the said section 7 or (as the case may be) to the amount of the part thereof which is not in money.
(8) The deposit shall not be subject to any form of execution in satisfaction of any claim of, or any judgment, order or decree of any court in the State in favour of, any creditor, otherwise than under and in accordance with the provisions of this Act.
14. Restriction on use of certain words.
14.—(1) (a) This subsection applies to a building society, an industrial and provident society, a friendly society, a credit union and an investment trust company.
(b) A person to whom this subsection applies shall not use in his or its name or description any of the words “bank”, “banker” or “banking” or any word which is a variant, derivative or translation of or is analogous to any of those words.
(2) There shall not be used in the name or description of a unit trust scheme any of the words “bank”, “banker” or “banking” or any word which is a variant, derivative or translation of or is analogous to any of those words.
15. Provisions in relation to incorporation of banking companies.
15.—(1) Before the incorporation of a company under the Companies Act, 1963, which, if incorporated, would, in the opinion of the registrar of companies, within the meaning of that Act, be holding itself out as a banker or have as one of its objects in its memorandum of association the carrying on of banking business, the registrar shall notify the Bank of the delivery to him of the memorandum and articles, within the meaning of that Act, of the company and shall not give a certificate of incorporation under that Act in respect of the company unless and until the Bank indicates to the registrar its willingness to grant a licence to the company or to exempt it under section 8 of this Act.
F85[(2) If, on delivery of documents under section 352 of the Companies Act 1963, or under regulation 4 or 7 of the European Communities (Branch Disclosures) Regulations 1993 (S.I. No. 395 of 1993), it appears to the registrar of companies that the company to which those documents relate—
(a) would be holding itself out as carrying on business as a banker in the State, or
(b) would have as one of its objects in its memorandum of association the carrying on of banking business in the State,
the registrar shall give the Bank written notice of the matter.]
(3) Whenever the registrar of companies is given notice of an alteration in any instrument constituting or defining the constitution of any company, he shall inform the Bank as soon as may be of the alteration if, in the opinion of the registrar, the company would, by virtue of the alteration, be holding itself out as a banker or have as one of its objects the carrying on of banking business.
16. Provisions in relation to registration or change of business name.
16.—(1)The registrar for the purposes of the Registration of Business Names Act, 1963, shall notify the Bank of any proposal to register a name or a change in a name under that Act if, in the opinion of the registrar, there would, by virtue of the proposal, be in relation to the business to which the proposal relates, a holding out as a banker or as carrying on banking business and the said registrar shall not register the name or change of name unless and until the Bank indicates to him its willingness to grant a licence in respect of the business concerned or to exempt it under section 8 of this Act F86[or the Bank indicates to the registrar that the company is one to which theF87[European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014)], relate].
(2) The Minister for Industry and Commerce shall consult the Bank in relation to any proposal to change the name of a company (within the meaning of the Companies Act, 1963) if, in the opinion of that Minister, the company would, by virtue of the change, be holding itself out as a banker or appear to be carrying on banking business.
17. F88[Holders of licences etc. to keep certain records.
17.—(1) The holder of a licenceF89[or authorisation undersection 9A]and each related body shall—
(a) keep at an office or offices within the State such records as may be specified from time to time by the Bank, in the due discharge by the Bank of its functions, and
(b) notify the Bank in writing of the address of the office or offices where those records are kepart
Different kinds of records may be specified under this subsection for different licence holdersF89[or holders of authorisations undersection 9A]and related bodies.
(2) The requirement imposed bysubsection (1)is additional to any other requirement imposed by law with respect to the keeping of records by the holder of a licenceF89[or authorisation undersection 9A]and by related bodies.
(3) The holder of a licenceF89[or authorisation undersection 9A]and each related body shall keep the records referred to insubsection (1)for such period as the Bank notifies in writing to that holder.
(4) The holder of a licenceF89[or authorisation undersection 9A]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.
(5)F90[…]]
17A. F91[Powers of authorised persons with respect to holders of licences.
17A.—F92[…]]
18. F93[Holders of licences and others to provide Bank with required information and returns.
18.—(1)This section applies to the following persons:
(a) a person who is the holder of a licenceF94[or authorisation undersection 9A];
(b) any person who carries on—
(i) a business of an associated company or related body of the holder of a licenceF94[or authorisation undersection 9A], or
(ii) a business in respect of which the person is, because of section 7(4)(b), exempt from being required to hold a licenceF94[or authorisation undersection 9A], or
(iii) a business as an investment trust company, or
(iv) a business as a moneybroker, or
(v) a business as a financial intermediary, or
(vi) a business of issuing, holding or otherwise participating in any market in financial instruments, including those to which Chapter VIII of Part II of the Central Bank Act 1989 applies.
(2)A person to whom this section applies shall provide the Bank, at such times, or within such periods, as the Bank specifies from time to time, with such information and returns concerning the relevant business carried on by the person as the Bank specifies from time to time.
(3)A person to whom this section applies shall, at such time or within such period as the Bank specifies, provide the Bank with such information or return (not being information or a return specified undersubsection (2)) as it requests in writing concerning the relevant business carried on by the person.
(4) A reporting agent designated by the European Central Bank shall provide the Bank or the European Central Bank, at such times or within such periods as the Bank or the European Central Bank specifies from time to time, with such information and returns concerning the activities of the agent as the Bank or the European Central Bank specifies from time to time.
(5) A reporting agent designated by the European Central Bank shall, at such time or within such period as the Bank or European Central Bank specifies, provide the Bank or European Central Bank with such information or return (not being information or a return specified undersubsection (4)) as the Bank or European Central Bank requests in writing concerning the activities of the agent.
(6) The Bank may specify information or a return for the purposes of this section only if it considers it necessary to have that information or return for the proper performance of the functions imposed, or the proper exercise of the powers conferred, on it by law.
(7) The European Central Bank may specify information or a return for the purposes ofsubsection (4)or(5)only if that Bank considers it necessary to have that information or return for the proper performance by that Bank of tasks and duties imposed, or the proper exercise of the powers conferred, on that Bank by or under the Rome Treaty or the ESCB Statute.
(8) A person shall not provide for the purpose of this section information or a return that the person knows to be false or misleading in a material respect.
(9) This section applies to the business of an associated company or a related body only in so far as the information and returns sought by the Bank are, in its opinion, materially relevant to the proper appraisal of the business of the holder of the licenceF94[or authorisation undersection 9A]concerned.
(10) In this section—
“information and returns” and “information or return” include audited accounts and audited group accounts, and any other documents that are equivalent or correspond to audited accounts or audited group accounts;
“money broker” has the same meaning as it has in section 108 of the Central Bank Act 1989, for the purposes of Chapter IX of that Act;
“relevant business”, in relation to a person to whom this section applies, means—
(a) in the case of a person who is the holder of a licenceF94[or authorisation undersection 9A], the banking business to which the licence relates, or
(b) in the case of a person referred to insubsection (1)(b), the business carried on by the person.]
19. Publication of business statements by holders of licences.
19.—(1) A holder of a licence F95[or authorisation undersection 9A] shall publish statements in respect of the business to which the licence F95[or authorisation undersection 9A] relates in such form and manner and at such times as may be specified by the Bank from time to time for the purpose of the performance of its statutory functions.
(2) Different forms may be specified by the Bank for the purposes of this section in relation to different holders of licences.
20. Displaying of financial statements by holders of licences.
20.—(1) A holder of a licence F96[or authorisation undersection 9A]—
(a) shall display and at all times keep displayed in a conspicuous place in every office, branch or other place in which he carries on banking business and also, if the holder is a limited company incorporated in the State, in the registered office of the company, a statement (in the form required by this section) in relation to the banking business carried on by him, and
(b) shall furnish on demand to each of his creditors and, if the holder is a limited company incorporated in or outside the State, to each member of the company, a copy of the latest such statement.
(2) The statement required by this section to be displayed by a holder of a licence F96[or authorisation undersection 9A] shall, in the case of an Associated Bank, be in the form of a copy of its latest balance sheet and, in every other case, be in such form as may be prescribed by the Bank.
21. Directions by Bank to holders of licences.
F97[ 21.—(1) In this section—
“banking activity” means—
(a) carrying on banking business, or
(b) making payments other than those that are specifically connected with carrying on banking business, or
(c) acquiring or disposing of assets or liabilities;
“prescribed circumstance”, in relation to the holder of a licenceF98[or authorisation undersection 9A], means any of the following:
(a) the holder has become or is likely to become unable to meet its obligations to its creditors;
(b) the holder is not maintaining or is unlikely to be in a position to maintain adequate capital resources having regard to the volume and nature of the holder's business;
(c) the holder is failing or has failed to comply with a condition imposed in relation to the licenceF98[or authorisation undersection 9A]in accordance with section 10 and the circumstances are such that the Bank considers that the stability and soundness of the holder are or will be affected by the failure;
(d) the holder is conducting business in such a manner as to jeopardise and prejudice the security of deposits taken by it or the rights and interests of persons who made those deposits;
(e) the holder and one or more than one other entities are under common control (whether or not any such other entity holds a licenceF98[or authorisation undersection 9A]) and the Bank is of the opinion that the common control is not in the interest of persons who keep deposits with the holder;
“specified”, in relation to a direction given under this section, means specified in the direction.
(2) On becoming satisfied that it would be in the public interest to do so, or that a prescribed circumstance exists in relation to the holder of a licenceF98[or authorisation undersection 9A], the Bank may, by direction given in writing, require the holder to suspend, for a specified period not exceeding 6 months, any specified banking activity except as authorised by the Bank.
(3) A direction given undersubsection (2)ceases to have effect—
(a) at the end of the period specified in the direction, or
(c) on the making of a winding-up order in respect of the holder of the licenceF98[or authorisation undersection 9A]concerned,
whichever first occurs.
(4) While a direction undersubsection (2)has effect—
(a) winding-up or bankruptcy proceedings may be commenced in relation to the holder of the licenceF98[or authorisation undersection 9A]concerned, and
(b) a receiver over the property of that holder may be appointed, and
(c) the property of that holder may be attached, sequestered or otherwise distrained,
only with the prior approval of the Court.
(5) If the Bank is satisfied that, despite the fact that the holder of the licenceF98[or authorisation undersection 9A]concerned appears to it to be able to meet the obligations that the holder owes to its creditors, the circumstances that gave rise to the direction are unlikely to be rectified, it may, by further direction, require the holder—
(a) to prepare, in consultation with the Bank, a scheme for the orderly termination of his banking business and the discharge of the holder's liabilities to persons who have deposits maintained with the holder under the supervision of the Bank, and
(b) to submit the scheme to the Bank for its approval within 2 months after the giving of the further direction.
(6) The Bank may approve or refuse to approve a scheme submitted to it undersubsection (5). In approving such a scheme, the Bank may impose such conditions as it considers appropriate.
(7) If the holder of the licenceF98[or authorisation undersection 9A]to whom a direction has been given under this section—
(a) fails to comply with the direction, or
(b) fails to comply with the terms of a scheme approved by the Bank under subsection (6),
the Court may, on the application of the Bank, make such order as the Court considers appropriate, including an order of committal or a winding-up order on the ground that it is just and equitable that the holder should be wound up.
(8) If a winding-up order is made in proceedings brought under this section against the holder of a licenceF98[or authorisation undersection 9A]to whom a direction has been given under this section, the Companies Acts apply to the holder in the same way as if the order had been made on a winding-up petition under those Acts and as if for any reference in that law to the presentation of the winding-up petition there were substituted a reference to the making of the winding-up order under this section.
(9) The Bank may, by notice in writing given to the holder of the licenceF98[or authorisation undersection 9A]concerned, vary or revoke a direction given under this section. However, the Bank may not vary a direction given under subsection (2) by extending the operation of the direction for a period exceeding 12 months from the date on which the direction first took effect.
(10) A direction given by the Bank under this section, and any variation of the direction undersubsection (9), are appealable decisions for the purposes of Part VIIA of the Central Bank Act 1942.
(11) For the purpose ofparagraph (e)of the definition of “prescribed circumstance” insubsection (1), the holder of a licenceF98[or authorisation undersection 9A]and one or more than one other entities are taken to be under common control if the decision as to how or by whom each are managed can be made by the same person or by the same group of persons acting in concert.]
22. Directions by Bank in relation to advertisements of holders of licences.
22.—(1) The Bank may give a direction in writing to a holder of a licence F100[or authorisation undersection 9A] in relation to the information which the holder shall include in any advertisement to be published by him or on his behalf or in any statement to the public to be made by him or on his behalf.
(2) F101[The Bank may give a direction to a holder of a licenceF100[or authorisation undersection 9A]to refrain from—
(a) publishing or continuing to publish, or
(b) causing to be published or to be continued to be published, during such period as shall be specified in the direction an advertisement inviting deposits from the public.]
F102[(2A) The Bank may give a direction to a holder of a licenceF100[or authorisation undersection 9A]to refrain from—
(a) publishing or continuing to publish, or
(b) causing to be published or to be continued to be published,
an advertisement containing information in respect of any service provided or to be provided to the public or any charge, term or condition upon which a service is so provided (or to be so provided) which, in the opinion of the Bank is false, misleading or calculated to deceive.]
(3) The Bank shall not give a direction under this section unless it is satisfied that it is desirable to do so in the interest of the orderly and proper regulation of banking.
F102[(4) In this section:
“advertisement” includes every form of recommendation of any matter to which this section relates including, in particular, the display or publication of any such matter by way of notice, leaflet, circular, pamphlet, brochure, photograph, film, video, sound broadcasting, television, electronic communication or personal canvassing;
“deposits” includes any funds taken from the public and payable on demand or on notice or at a fixed or determinable future date.]
23. Regulation of ratios between assets and liabilities of holders of licences.
23.—(1) The Bank may from time to time require a holder of a licence to maintain
(a) a specified ratio,
(b) a ratio which does not exceed a specified ratio, or
(c) a ratio which is not less than a specified ratio,
between his assets and his liabilities and the specified ratio may be expressed as a percentage of the assets or liabilities concerned.
(2) A requisition under this section may be expressed to apply
(a) in relation to all holders of licences or to holders of a specified category or specified categories,
(b) in relation to the total assets or total liabilities of the holders of licences concerned or to specified assets or assets of a specified kind or specified liabilities or liabilities of a specified kind of those holders,
(c) in relation to a specified time or times or during a specified period or periods,
and shall have effect in accordance with its terms.
(3) A requisition under this section which is in force may be revoked by the Bank or may be amended by a subsequent requisition under this section.
F103[(4)In this section—
“liabilities” include such contingent liabilities as may be specified by the Bank from time to time for the purposes of this section;
“specified” means specified by the Bank in a requisition under this section.]
23A. F104[Composition of assets and liabilities.
23A.—The Bank may, from time to time, specify as respects a holder of a licence requirements as to the composition of its assets and requirements as to the composition of its liabilities.]
24. Power of Bank to require deposits by holders of licences in certain circumstances.
24.—(1)If at any time it should appear to the Bank that it is expedient so to do, the Bank may, with the consent of the Minister, make regulations requiring every holder of a licence to make with the Bank, in addition to the deposit under section 7 of this Act, a deposit (not bearing interest) of an amount specified in the regulations or calculated in a manner specified in the regulations if and whenever after a date specified in the regulations the assets of the holder within the State fall below such proportion in relation to his liabilities within the State as is specified in the regulations, and to maintain such deposit so long as such assets are below the said specified proportion.
(2) Regulations made under this section may prescribe different requirements in respect of different holders of licences.
25. Power of Bank in respect of clearances of holders of licences.
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