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Central Bank and Financial Services Authority of Ireland Act 2004

Type Act
Publication 2004-07-05
Last updated 2017-07-26
State In force superseded text
Text As published
Source Irish Statute Book
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articles 35

This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.

1 amending act · 2017-07-26, Financial Services and Pensions Ombudsman Act 2017

Act to amend the Central Bank Act 1942 for the purposes of providing for the establishment and functions of the regulatory authority sanctions panel, establishing the financial services ombudsman's bureau and prescribing the functions and powers of that ombudsman, providing for the establishment of consultative panels to advise the Irish Financial Services Regulatory Authority on certain matters; to amend the Central Bank Act 1997 for the purposes of making further provision for auditing the accounts of financial service providers and providing for the regulation of money transmission businesses; and to make miscellaneous amendments to certain other acts and statutory instruments relating to the provision of financial services

Reform history JSON API
Item Provision affected Amendment Amendment
1. Section 2 (as amended by section 70(c) of the Central Bank Act 1997 and item 1 of Part 6 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003) (a) In subsection (1), insert the following definitions after the definition of “the Act of 1942”: “ ‘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;”; (a) In subsection (1), insert the following definitions after the definition of “the Act of 1942”: “ ‘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;”;
Section 2 (as amended by section 70(c) of the Central Bank Act 1997 and item 1 of Part 6 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003) (b) In subsection (1), substitute the following definition for the definition of “banking business”: (b) In subsection (1), substitute the following definition for the definition of “banking business”:
“ ‘banking business’, in relation to a person, means any business that consists of or includes— “ ‘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 (whether or not the issue of securities or any other form of financial obligation is involved), and (a) receiving money on the person's own account from members of the public either on deposit or as repayable funds (whether or not the issue of securities or any other form of financial obligation is involved), and
(b) any other business of a kind normally carried on by a bank (which may include the granting of credits on own account), and (b) any other business of a kind normally carried on by a bank (which may include the granting of credits on own account), and
(c) any other business of a kind prescribed under subsection (2) for the purpose of this paragraph, (c) any other business of a kind prescribed under subsection (2) for the purpose of this paragraph,
but does not include such a business in so far as the business consists of or includes— 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, or (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, or
(ii) receiving money in respect of leasing or selling goods under a hire-purchase agreement, a leasing agreement or credit-sale agreement, or (ii) receiving money in respect of leasing or selling goods under a hire-purchase agreement, a leasing agreement or credit-sale agreement, or
(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, or (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, or
(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, or (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, or
(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), or (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), or
(vi) receiving money accepted as a contribution within the meaning of the Pensions Acts, or (vi) receiving money accepted as a contribution within the meaning of the Pensions Acts, or
(vii) receiving money where it can be shown that— (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 (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 (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) (which may include the acceptance of collateral).”; (viii) receiving money under financial contracts (within the meaning of the Netting of Financial Contracts Act 1995) (which may include the acceptance of collateral).”;
(c) In subsection (1), insert the following definitions after the definition of “the Court”: (c) In subsection (1), insert the following definitions after the definition of “the Court”:
“ ‘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; “ ‘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;”; ‘functions’, in relation to the Bank, means the functions and duties imposed on the Bank by or under an enactment;”;
(d) In subsection (1), insert the following definition after the definition of “holder”: (d) In subsection (1), insert the following definition after the definition of “holder”:
“ ‘holding company’ has the meaning given by section 2 of the Central Bank Act 1942;”; “ ‘holding company’ has the meaning given by section 2 of the Central Bank Act 1942;”;
(e) In subsection (1), insert the following definition after the definition of “investment trust company”: (e) In subsection (1), insert the following definition after the definition of “investment trust company”:
“ ‘legal practitioner’ means a barrister or solicitor;”; “ ‘legal practitioner’ means a barrister or solicitor;”;
(f) In subsection (1), insert the following definition after the definition of “insurance undertaking”: (f) In subsection (1), insert the following definition after the definition of “insurance undertaking”:
“ ‘Maastricht Treaty’ means the Treaty on European Union done at Maastricht on 7 February 1992;”; “ ‘Maastricht Treaty’ means the Treaty on European Union done at Maastricht on 7 February 1992;”;
(g) In subsection (1), insert the following definitions after the definition of “the Minister”: (g) In subsection (1), insert the following definitions after the definition of “the Minister”:
“ ‘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; “ ‘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;
‘record’ means any record of information, however compiled, recorded or stored, and includes— ‘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 (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; (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;
‘related body’, in relation to the holder of a licence, means— ‘related body’, in relation to the holder of a licence, means—
(a) a subsidiary company of that holder, or (a) a subsidiary company of that holder, or
(b) if that holder is itself a subsidiary— (b) if that holder is itself a subsidiary—
(i) its holding company, or (i) its holding company, or
(ii) any other subsidiary of its holding company, (ii) any other subsidiary of its holding company,
or or
(c) an associated company of that holder, 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, under section 17A; (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, under section 17A;
‘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;”; ‘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;”;
(h) In subsection (1), insert the following definition after the definition of “securities”: (h) In subsection (1), insert the following definition after the definition of “securities”:
“ ‘subsidiary company’ has the meaning given by section 2 of the Central Bank Act 1942;”; “ ‘subsidiary company’ has the meaning given by section 2 of the Central Bank Act 1942;”;
(i) Substitute the following subsection for subsection (2): (i) Substitute the following subsection for subsection (2):
“(2) On being satisfied that it would be consistent with the proper and orderly regulation of banking to do so, the Minister may, after consulting the Bank, make an order— “(2) On being satisfied that it would be consistent with the proper and orderly regulation of banking to do so, the Minister may, after consulting the Bank, make an order—
(a) prescribing a category of business for the purpose of paragraph (c) of the definition of ‘banking business’ in subsection (1), or (a) prescribing a category of business for the purpose of paragraph (c) of the definition of ‘banking business’ in subsection (1), or
(b) amending that definition by— (b) amending that definition by—
(i) adding a specified category of business to the exclusions specified in that definition, or (i) adding a specified category of business to the exclusions specified in that definition, or
(ii) removing a specified category of business from those exclusions, or (ii) removing a specified category of business from those exclusions, or
(iii) substituting for a category of business specified in those exclusions another such category.”. (iii) substituting for a category of business specified in those exclusions another such category.”.
2. Section 7 (as amended by section 30 of the Central Bank Act 1989) (a) Substitute the following subsection for subsection (4): “(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 (a) Substitute the following subsection for subsection (4): “(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 bank certified under the Trustee Savings Banks Acts 1863 to 1979, or (c) a trustee savings bank certified under the Trustee Savings Banks Acts 1863 to 1979, or
(d) a building society, an industrial and provident society, a friendly society or a credit union, or (d) a building society, an industrial and provident society, a friendly society or a credit union, or
(e) a manager, trustee or custodian of a unit trust or a collective investment undertaking or an entity that provides services to such an undertaking, or (e) a manager, trustee or custodian of a unit trust or a collective investment undertaking or an entity that provides services to such an undertaking, or
(f) another member state of the European Communities, a regional or local authority of such a state, or a public international organisation of which one or more member states of the European Communities are members. (f) another member state of the European Communities, a regional or local authority of such a state, or a public international organisation of which one or more member states of the European Communities are members.
(5) The Minister may, if satisfied that it would be in the interest of the proper and orderly regulation of banking or of any other financial market to do so, make an order amending subsection (4)— (5) The Minister may, if satisfied that it would be in the interest of the proper and orderly regulation of banking or of any other financial market to do so, make an order amending subsection (4)—
(a) by adding to the subsection any specified body or any specified class of persons, or (a) by adding to the subsection any specified body or any specified class of persons, or
(b) by omitting from the subsection any specified body or any specified class of persons, (b) by omitting from the subsection any specified body or any specified class of persons,
but only after consultation with the Bank and with such other Minister of Government or other persons as the Minister considers appropriate to so consult.”. but only after consultation with the Bank and with such other Minister of Government or other persons as the Minister considers appropriate to so consult.”.
(b) Insert the following subsection after subsection (5) (as inserted by paragraph (a)): (b) Insert the following subsection after subsection (5) (as inserted by paragraph (a)):
“(6) Subsection (1) does not apply to a person who acts on behalf of— “(6) Subsection (1) does not apply to a person who acts on behalf of—
(a) the Bank, or (a) the Bank, or
(b) the holder of a licence, or (b) the holder of a licence, or
(c) a body or person referred to in subsection (4), or (c) a body or person referred to in subsection (4), or
(d) a credit institution or financial institution that is permitted by the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992) 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.”. (d) a credit institution or financial institution that is permitted by the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992) 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.”.
3. Section 8 (as amended by section 31 of the Central Bank Act 1989 and section 70(d) of the Central Bank Act 1997) Substitute the following subsections for subsection (2): “(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. Substitute the following subsections for subsection (2): “(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. (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— (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 (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. (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.”. (2C) The Bank shall publish in Iris Oifigiúil a notice of every exemption and revocation under this section.”.
4. Section 15 Substitute the following subsection for subsection (2): Substitute the following subsection for subsection (2):
“(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— “(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 (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, (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.”. the registrar shall give the Bank written notice of the matter.”.
5. Section 17 (as substituted by item 2 of Part 6 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003) Delete subsection (5). Delete subsection (5).
6. Section 17A (as substituted by item 2 of Part 6 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003) In subsection (8), delete the definitions of “associated company”, “company”, “functions”, “holding company”, “legal practitioner”, “prescribed record”, “related body” and “subsidiary company”. In subsection (8), delete the definitions of “associated company”, “company”, “functions”, “holding company”, “legal practitioner”, “prescribed record”, “related body” and “subsidiary company”.
7. Section 18 (as substituted by section 37 of the Central Bank Act 1989 and amended by section 8 of the Central Bank Act 1998) Substitute the following section for section 18: Substitute the following section for section 18:
Section 18 (as substituted by section 37 of the Central Bank Act 1989 and amended by section 8 of the Central Bank Act 1998) “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 licence; (b) any person who carries on— (i) a business of an associated company or related body of the holder of a licence, or (ii) a business in respect of which the person is, because of section 7(4)(b), exempt from being required to hold a licence, 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 under subsection (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 under subsection (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 of subsection (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 licence 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;
‘moneybroker’ 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 licence, the banking business to which the licence relates, or
(b) in the case of a person referred to in subsection (1)(b), the business carried on by the person.”.
8. Section 27 (as substituted by section 70(e) of Central Bank Act 1997) (a) Substitute the following subsection for subsection (2): “(2) Subsection (1) of this section does not apply to advertising for or otherwise soliciting deposits or other repayable funds from the public— (a) by the holder of a licence, the Bank, or a person to whom, because of subsection (4) of section 7 of this Act, subsection (1) of that section does not apply, or (a) Substitute the following subsection for subsection (2): “(2) Subsection (1) of this section does not apply to advertising for or otherwise soliciting deposits or other repayable funds from the public— (a) by the holder of a licence, the Bank, or a person to whom, because of subsection (4) of section 7 of this Act, subsection (1) of that section does not apply, or
(b) by a person to whom, because of section 8(2) of this Act, section 7(1) of this Act does not apply, or (b) by a person to whom, because of section 8(2) of this Act, section 7(1) of this Act does not apply, or
(c) by a person authorised to carry on business in the State by the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992, or (c) by a person authorised to carry on business in the State by the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992, or
(d) by a person on behalf of a person referred to in paragraph (a), (b) or (c) of this subsection.”; (d) by a person on behalf of a person referred to in paragraph (a), (b) or (c) of this subsection.”;
(b) In subsection (5), insert “or other repayable funds” after “deposits”. (b) In subsection (5), insert “or other repayable funds” after “deposits”.

PART 5 Amendment of Insurance (Miscellaneous Provisions) Act 1985
Item Provision affected Amendment
1. Section 1 Substitute the following definition for the definition of “the Minister”:
“ ‘the Minister’ means the Minister for Finance.”.
2. Sections 2 and 3 Repeal the sections.
3. Section 4 After “attorney” insert “or proxy”, wherever occurring.
4. Section 6 Delete “, after consultation with the Minister for Finance,”.
5. Section 7 Delete “given after consultation with the Minister for Finance”.
6. Section 8 Substitute the following subsection for subsection (1):
“(1) The memorandum and articles of association of the Company must be in a form, consistent with this Act, that is approved by the Minister.”.
7. Section 9 In subsection (2), delete “, after consultation with the Minister for Finance,”.
8. Section 10 (a) In subsection (1), delete “after consultation with the Minister for Finance”;
(b) in subsection (2), delete “after consultation with the Minister for Finance”;
(c) in subsection (3), delete “after consultation with the Minister for Finance”;
(d) in subsection (4), delete “, after consultation with the Minister for Finance,”.
9. Section 14 (a) In subsection (1), delete “, with the consent of the Minister for Finance,”;
(b) in subsection (3), insert “, or the Minister for Enterprise, Trade and Employment,” after “Minister”;
(c) in subsection (4), delete “with the consent of the Minister for Finance”;
(d) in subsection (6), insert “, or the Minister for Enterprise, Trade and Employment,” after “Minister” wherever occurring;
(e) in subsection (7), delete “for Finance”;
(f) in subsection (8), insert “, or the Minister for Enterprise, Trade and Employment,” after “Minister”.
10. Section 15 (a) In subsection (1), delete “to him by the Minister for Finance”;
(b) in subsection (2), delete “for Finance”.
11. Section 17 Delete “, to such extent as may be sanctioned by the Minister for Finance,”.

PART 6 Amendment of Insurance Act 1989
Item Provision affected Amendment Amendment
1. Section 2 Insert the following definition after the definition of “the Court”: Insert the following definition after the definition of “the Court”:
“ ‘EEA country’ means a country that is a member of the European Economic Area;”. “ ‘EEA country’ means a country that is a member of the European Economic Area;”.
2. Section 11 Substitute the following subsection for subsection (2): Substitute the following subsection for subsection (2):
“(2) The Bank has a right to disclose any such return or document to the supervisory authority of another EEA country so long as the disclosure is not prohibited by law.”. “(2) The Bank has a right to disclose any such return or document to the supervisory authority of another EEA country so long as the disclosure is not prohibited by law.”.
3. Section 18 Substitute the following subsection for subsection (3): Substitute the following subsection for subsection (3):
“(3) If the head office of an undertaking is located in another EEA country, the Bank shall notify the supervisory authority of that country before issuing a direction under this section in respect of the undertaking.”. “(3) If the head office of an undertaking is located in another EEA country, the Bank shall notify the supervisory authority of that country before issuing a direction under this section in respect of the undertaking.”.
4. Section 20 Substitute the following section for section 20: Substitute the following section for section 20:
“Qualifications, experience and fitness of directors, managers and authorised agents of insurers. 20.—(1) For the purposes of this section, a person holds a management position with an insurer if the person— (a) is a director of the insurer, or (b) holds a management position with the insurer that is specified by the Bank, or (c) is the authorised agent of the insurer in the State.
(2) The Bank may, by notice in writing, require an insurer to submit such information as the Bank requires concerning—
(a) the qualifications and experience of persons who hold management positions with the insurer, and
(b) the fitness of those persons to hold those positions.
(3) On being satisfied on reasonable grounds that a person holding a management position with an insurer—
(a) does not have the appropriate qualifications or adequate experience, or
(b) is not otherwise fit to hold the position,
the Bank may direct that, while the person continues to hold the position, the insurer must take such of the measures specified in subsection (4) as the Bank notifies in writing to the insurer.
(4) The following measures are specified for the purposes of subsection (3):
(a) to refrain from taking on new business, or new business of a specified type or class;
(b) to limit its premium income to a specified amount;
(c) to refrain from making investments of a specified class or description;
(d) to realise, within a specified period, investments of a specified class or description;
(e) to maintain in the State assets of a value equal to the whole, or a specified proportion of, the amount of its liabilities in respect of business carried on in the State;
(f) to take such further measures as may be specified in the direction.
(5) The Bank may from time to time vary or revoke a direction given under this section.
(6) If an insurer has its head office in another EEA country, the Bank shall notify the supervisory authority of that country before issuing a direction under this section in respect of the insurer.
(7) On being satisfied on reasonable grounds that an insurer has not complied, or is not complying, with a direction under this section, the Bank may suspend or revoke the insurer's authorisation in respect of any class or part of a class of business in accordance with the procedures prescribed by section 58.
(8) An insurer—
(a) shall notify the Bank in writing of every proposal to appoint a person to a management position with the insurer, and
(b) shall not make the appointment if the Bank, within 30 days of being notified of the proposal, objects to the proposal on the ground that the person proposed to be appointed—
(i) does not have the appropriate qualifications or adequate experience, or
(ii) is not otherwise fit to hold the position.
(9) A direction or objection of the Bank under this section is an appealable decision for the purposes of Part VIIA of the Central Bank Act 1942.
Qualifications, experience and fitness of persons concerned in management of applicants for authorisations. 20A.—(1) For the purposes of this section, ‘management position’, in relation to an applicant for an authorisation, means— (a) a director, or (b) a management position specified by the Bank, or (c) an authorised agent.
(2) An applicant for an authorisation to carry on a specified class or description of insurance business shall provide the Bank with such information as the Bank requires concerning—
(a) the qualifications and experience of persons who hold, or whom the applicant proposes to appoint, to management positions with the applicant, and
(b) the fitness of those persons to hold those positions.
(3) The Bank shall not grant an authorisation if it appears to the Bank that a person referred to in subsection (2)—
(a) does not have the appropriate qualifications or adequate experience to hold a management position with the applicant, or
(b) is not otherwise fit to hold such a position.
Provisions supplementary to sections 20 and 20A. 20B.—(1) If the head office of an insurer or an applicant for an authorisation is not located within the State, sections 20 and 20A apply only to persons who perform functions of the undertaking in the State. (2) The Bank is not liable in respect of any claim for damages arising directly or indirectly from the application of any of the provisions of section 20 or 20A.”.
5. Section 22 Substitute the following subsection for subsection (1E): Substitute the following subsection for subsection (1E):
“(1E) The Bank may direct a company to stop carrying on the business referred to in subsection (1), by notice in writing either indefinitely or for such period as it may specify in the direction, in all or any of the following circumstances: “(1E) The Bank may direct a company to stop carrying on the business referred to in subsection (1), by notice in writing either indefinitely or for such period as it may specify in the direction, in all or any of the following circumstances:
(a) if the company contravenes subsection (1)(b) or (1C), (a) if the company contravenes subsection (1)(b) or (1C),
(b) if information that is, to the knowledge of the company, false or misleading is included in a notice of the company given under subsection (1)(b) or (1C), (b) if information that is, to the knowledge of the company, false or misleading is included in a notice of the company given under subsection (1)(b) or (1C),
(c) if the Bank considers that, having regard to the risks insured or proposed to be insured by the company, the company is under capitalised, or (c) if the Bank considers that, having regard to the risks insured or proposed to be insured by the company, the company is under capitalised, or
(d) if the Bank considers that one or more of the directors or the senior managers of the company are not fit and proper, or are not suitably qualified, to direct and manage the company's business, or (d) if the Bank considers that one or more of the directors or the senior managers of the company are not fit and proper, or are not suitably qualified, to direct and manage the company's business, or
(e) if the Bank considers that the company has not a sufficient number of fit and proper or suitably qualified employees in the State to carry on effectively the company's business, or (e) if the Bank considers that the company has not a sufficient number of fit and proper or suitably qualified employees in the State to carry on effectively the company's business, or
(f) if the Bank has information showing that the company has engaged in unlawful activities, either within or outside the State. (f) if the Bank has information showing that the company has engaged in unlawful activities, either within or outside the State.
(1EA) A direction given by the Bank to a company under subsection (1E) does not absolve a company from performing its obligations in respect of the business of reinsurance carried on by it before that direction was given.”. (1EA) A direction given by the Bank to a company under subsection (1E) does not absolve a company from performing its obligations in respect of the business of reinsurance carried on by it before that direction was given.”.
6. Section 31 Delete subsections (3), (5) and (7). Delete subsections (3), (5) and (7).
7. Section 58 (a) In subsection (3), substitute “all other EEA countries” for “any other Member State of the European Communities”; (a) In subsection (3), substitute “all other EEA countries” for “any other Member State of the European Communities”;
(b) delete subsection (4). (b) delete subsection (4).

PART 7 Amendment of Central Bank Act 1989
Item Provision affected Amendment
1. Section 50 (as substituted by item 5 of Part 9 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003) In subsection (4), insert “or 268” after “section 233”.
2. Section 77 Substitute the following subsection for subsection (2):
“(2) The Minister may give consent under subsection (1) only after consulting the Minister for Enterprise, Trade and Employment, and after being satisfied that the Bank's proposed decision to approve or refuse its approval—
(a) would be in the interests of proper and orderly regulation of banking, and
(b) would be in the public interest, bearing in mind the effect of the transaction on the continued availability of financial services, both generally and on a social and geographical basis and on the capacity of the State to manage the State's economy generally and in order to comply with its obligations under the law of the European Communities.”.
3. Section 101 Substitute the following subsection for subsection (1):
“(1) In approving rules of an existing exchange or for a proposed exchange, the Bank may impose conditions or requirements on the exchange.
(1A) The Bank may, at any time after approving the rules of any such exchange—
(a) impose further conditions or requirements on the exchange, or
(b) amend or revoke any condition or requirement imposed under this subsection or subsection (1).
(1B) The powers conferred on the Bank by subsections (1) and (1A) are exercisable only for the purposes of ensuring—
(a) the prudent regulation of the exchange concerned, and
(b) the protection of consumers of financial services, and
(c) the effective and efficient regulation of the State's financial system.
(1C) The Bank may extend a condition or requirement imposed on an exchange under subsection (1) or (1A) so that the condition or requirement also applies to either or both of the following:
(a) all or any of the members of the exchange;
(b) any company established in connection with a member's membership of the exchange.
(1D) The Bank may not impose a condition or requirement under subsection (1) or (1A), or amend or extend such a condition or requirement, unless it—
(a) has notified the exchange, and any member or company affected by the condition or requirement, or by the amendment or extension, of its intention to impose the condition or requirement, or make the amendment or extension, and
(b) has given the exchange, and any such member or company, the opportunity to make representations to the Bank to show why the condition or requirement should not be imposed, or the amendment or extension should not be made.
(1E) If securities created by the Minister could be the subject of dealings on an exchange, the Bank shall not impose a condition or requirement under subsection (1) or (1A) in relation to any such dealings without having notified the Minister of its intention to impose the condition or requirement.”.
4. Section 117 Substitute the following subsections for subsection (4):
“(4) A person supervised by the Bank who—
(a) fails to provide information in accordance with subsection (3)(a), or
(b) fails to comply with a direction under subsection (3)(b), or
(c) publishes, or issues a document that contains a reference to, a code of practice so as to suggest that the code has been issued or approved by the Bank when this is not the case,
commits an offence.
(4A) A person who is convicted of an offence under subsection (4) is liable—
(a) on summary conviction, to a fine not exceeding €2,000, or
(b) on conviction on indictment, to a fine not exceeding €40,000.
(4B) A person who—
(a) having been convicted of an offence under subsection (4)(a), continues to fail to provide information, or
(b) having been convicted of an offence under subsection (4)(b), continues to fail to comply with the direction,
commits a further offence on each day, or part of a day, on which the failure continues after that conviction.
(4C) A person who is convicted of an offence under subsection (4B) is for each such offence liable—
(a) on summary conviction, to a fine not exceeding €500, or
(b) on conviction on indictment, to a fine not exceeding €5,000.”.

PART 8 Amendment of Trustee Savings Banks Act 1989
Item Provision affected Amendment
1. Section 24A In subsection (3)(e), substitute “trustee savings bank or related body” for “licence holder”.

PART 9 Amendment of Companies Act 1990
Item Provision inserted Amendment
1. Section 253 In subsection (2A)(a), substitute “Central Bank” for “Bank”.

PART 10 Amendment of Stock Exchange Act 1995
Item Provision inserted Amendment
1. Section 30 (as amended by item 4 of Part 19 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003) (a) In subsection (5), insert “, a member of or officer of the Regulatory Authority” after “the Bank”; (b) In subsection (6), insert “, a member or officer of the Regulatory Authority” after “the Bank”; (c) In the definition of “committee of inspection” in subsection (6B), insert “or 268” after “section 233”.
2. Section 53 Substitute the following subsections for subsection (1):
“(1) This section applies to the following persons:
(a) the supervisory authority;
(b) employees and officers of that authority;
(c) the members of any Board of that authority;
(d) the Regulatory Authority;
(e) members and officers of the Regulatory Authority and employees of the Bank.
(1A) A person to whom this section applies is not liable in damages for anything done or omitted to be done in performing functions under this Act unless it is proved that the act was done, or omitted to be done in bad faith.”.
3. Section 55 (as amended by item 7 of Part 19 of Schedule 1 to the Central Bank and Financial Services Authority of Ireland Act 2003) In subsection (1), insert “and may, whenever appropriate, revoke the appointments of those persons” after “this Act”.
4. Section 65 Repeal the section.
5. Section 69 (a) In subsection (3), insert the following paragraph after paragraph (a):
“(aa) a person authorised by the Chief Executive of the Regulatory Authority;”;
(b) Delete subsection (3)(d).
6. Second Schedule Repeal the Schedule.

PART 11 Amendment of Investment Intermediaries Act 1995

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