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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State In force superseded text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 (a) In subsection (1), insert the following definition after the definition of “director”: (a) In subsection (1), insert the following definition after the definition of “director”:
“ ‘financial institution’ means— “ ‘financial institution’ means—
(a) an insurance undertaking as defined in Article 1(a) of Directive No. 92/49/EEC, or (a) an insurance undertaking as defined in Article 1(a) of Directive No. 92/49/EEC, or
(b) an assurance undertaking as defined in Article 1(a) of Directive No. 92/96/EEC, or (b) an assurance undertaking as defined in Article 1(a) of Directive No. 92/96/EEC, or
(c) a UCITS as defined in Article 1(2) of Directive No. 85/611/EEC (as amended), or (c) a UCITS as defined in Article 1(2) of Directive No. 85/611/EEC (as amended), or
(d) an investment firm as defined in Article 1(2) of Directive No. 93/22/EEC, or (d) an investment firm as defined in Article 1(2) of Directive No. 93/22/EEC, or
(e) any other undertaking the activities of which are similar to those of an undertaking referred to in subparagraphs (a) to (d) or the principal activity of which is to acquire holdings of financial assets,”; (e) any other undertaking the activities of which are similar to those of an undertaking referred to in subparagraphs (a) to (d) or the principal activity of which is to acquire holdings of financial assets,”;
(b) In subsection (1), insert the following definition after the definition of “proposed investment business firm”: (b) In subsection (1), insert the following definition after the definition of “proposed investment business firm”:
“ ‘publication’ includes publication on an Internet website;”; “ ‘publication’ includes publication on an Internet website;”;
(c) In subsection (1), insert the following definition after the definition of “related undertakings”: (c) In subsection (1), insert the following definition after the definition of “related undertakings”:
“ ‘relevant collective investment scheme instrument’ means— “ ‘relevant collective investment scheme instrument’ means—
(a) units or shares in undertakings for collective investments in transferable securities within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003 (S.I. No. 211 of 2003), or (a) units or shares in undertakings for collective investments in transferable securities within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003 (S.I. No. 211 of 2003), or
(b) units in a unit trust, or (b) units in a unit trust, or
(c) shares in an investment company, or (c) shares in an investment company, or
(d) capital contributions to an investment limited partnership;”; (d) capital contributions to an investment limited partnership;”;
(d) In subsection (1), substitute the following definition for the definition of “product producer”: (d) In subsection (1), substitute the following definition for the definition of “product producer”:
“ ‘product producer’ means a firm, institution, collective undertaking, investment company or insurance undertaking of a kind referred to in section 26(1A);”. “ ‘product producer’ means a firm, institution, collective undertaking, investment company or insurance undertaking of a kind referred to in section 26(1A);”.
2. Section 6 Substitute the following subsection for subsection (1): Substitute the following subsection for subsection (1):
“(1) The expenses incurred by the Minister in administering this Act are payable out of money provided by the Oireachtas.”. “(1) The expenses incurred by the Minister in administering this Act are payable out of money provided by the Oireachtas.”.
3. Section 22 (a) In subsection (5), insert “, or a member or officer of the Regulatory Authority” after “the Bank”; (a) In subsection (5), insert “, or a member or officer of the Regulatory Authority” after “the Bank”;
(b) In subsection (6), insert “, or a member or officer of the Regulatory Authority” after “the Bank”; (b) In subsection (6), insert “, or 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”; (c) In the definition of “committee of inspection” in subsection (6B), insert “or 268” after “section 233”;
(d) In subsection (6B), substitute the following definition for the definition of “responsible authority”: (d) In subsection (6B), substitute the following definition for the definition of “responsible authority”:
“ ‘responsible authority’ means— “ ‘responsible authority’ means—
(a) the Governor of the Bank, or (a) the Governor of the Bank, or
(b) the Chief Executive of the Regulatory Authority, or (b) the Chief Executive of the Regulatory Authority, or
(c) any person to whom the Governor of the Bank or the Chief Executive of that Authority has delegated responsibility for appointing persons under this section.”. (c) any person to whom the Governor of the Bank or the Chief Executive of that Authority has delegated responsibility for appointing persons under this section.”.
4. Section 26 Substitute the following subsections for subsection (1): Substitute the following subsections for subsection (1):
“(1) An investment product intermediary is a restricted activity investment product intermediary for the purposes of this Act if— “(1) An investment product intermediary is a restricted activity investment product intermediary for the purposes of this Act if—
(a) the only investment business service that the intermediary provides, or in relation to which the intermediary provides investment advice, is one or more of— (a) the only investment business service that the intermediary provides, or in relation to which the intermediary provides investment advice, is one or more of—
(i) receiving and transmitting orders for relevant collective investment scheme instruments, shares in a company that is listed on a stock exchange, bonds that are listed on a stock exchange, prize bonds, tracker bonds, insurance policies, or personal retirement savings accounts within the meaning of the Pensions Act 1990, or (i) receiving and transmitting orders for relevant collective investment scheme instruments, shares in a company that is listed on a stock exchange, bonds that are listed on a stock exchange, prize bonds, tracker bonds, insurance policies, or personal retirement savings accounts within the meaning of the Pensions Act 1990, or
(ii) acting as a deposit agent or as a deposit broker, (ii) acting as a deposit agent or as a deposit broker,
and and
(b) in the course of performing an activity of the kind specified in paragraph (a), the intermediary transmits orders only to an entity, or an entity of a class, specified in subsection (1A), and (b) in the course of performing an activity of the kind specified in paragraph (a), the intermediary transmits orders only to an entity, or an entity of a class, specified in subsection (1A), and
(c) the intermediary does not hold clients' funds or securities in such a way as, in dealings with clients, to become indebted to those clients. (c) the intermediary does not hold clients' funds or securities in such a way as, in dealings with clients, to become indebted to those clients.
(1A) The following entities and classes of entities are specified for the purposes of subsection (1)(b): (1A) The following entities and classes of entities are specified for the purposes of subsection (1)(b):
(a) investment firms authorised in accordance with Directive 93/22/EEC of 10 May 1993 by a competent authority of another Member State of the European Communities; (a) investment firms authorised in accordance with Directive 93/22/EEC of 10 May 1993 by a competent authority of another Member State of the European Communities;
(b) authorised investment business firms (other than restricted activity investment product intermediaries or certified persons); (b) authorised investment business firms (other than restricted activity investment product intermediaries or certified persons);
(c) member firms within the meaning of the Stock Exchange Act 1995; (c) member firms within the meaning of the Stock Exchange Act 1995;
(d) credit institutions authorised in accordance with Directives 77/780/EEC of 12 December 1977 and 89/646/EEC of 15 December 1989; (d) credit institutions authorised in accordance with Directives 77/780/EEC of 12 December 1977 and 89/646/EEC of 15 December 1989;
(e) in relation to investment business firms and credit institutions authorised to carry on business in a state other than a Member State, such branches of those firms or institutions as the supervisory authority approves from time to time; (e) in relation to investment business firms and credit institutions authorised to carry on business in a state other than a Member State, such branches of those firms or institutions as the supervisory authority approves from time to time;
(f) collective investment undertakings authorised under the law of a Member State of the European Communities to market units in collective investments to the public, and to the managers of such undertakings; (f) collective investment undertakings authorised under the law of a Member State of the European Communities to market units in collective investments to the public, and to the managers of such undertakings;
(g) investment companies with fixed capital as defined in Article 15(4) of Council Directive 77/91/EEC of 13 December 1976 the securities of which are listed or dealt in on a regulated market in a Member State; (g) investment companies with fixed capital as defined in Article 15(4) of Council Directive 77/91/EEC of 13 December 1976 the securities of which are listed or dealt in on a regulated market in a Member State;
(h) insurance undertakings; (h) insurance undertakings;
(i) the Prize Bond Company Limited, or any successor to it as operator of the Prize Bond scheme. (i) the Prize Bond Company Limited, or any successor to it as operator of the Prize Bond scheme.
(1B) An intermediary does not cease to be a restricted activity investment product intermediary for the purposes of this Act only because the intermediary— (1B) An intermediary does not cease to be a restricted activity investment product intermediary for the purposes of this Act only because the intermediary—
(a) accepts non-negotiable cheques or similar instruments made out to a body referred to in subsection (1A) in connection with receiving and transmitting orders, or (a) accepts non-negotiable cheques or similar instruments made out to a body referred to in subsection (1A) in connection with receiving and transmitting orders, or
(b) when acting as a deposit agent, accepts cash from a client for the client's account with a credit institution, or (b) when acting as a deposit agent, accepts cash from a client for the client's account with a credit institution, or
(c) when providing services other than investment business services or investment advice, holds cash on behalf of clients, or (c) when providing services other than investment business services or investment advice, holds cash on behalf of clients, or
(d) accepts cash from a client in circumstances to which section 25G applies when acting as an insurance intermediary, or (d) accepts cash from a client in circumstances to which section 25G applies when acting as an insurance intermediary, or
(e) accepts cash from a client in circumstances to which section 25E applies when acting as a tied insurance agent. (e) accepts cash from a client in circumstances to which section 25E applies when acting as a tied insurance agent.
(1C) Nothing in this section affects the obligation of a restricted activity investment product intermediary to comply with regulations in force under section 43D of the Insurance Act 1989 in so far as they relate to the matters referred to in section 43E(1)(a)(iii) and (iv) of that Act.”. (1C) Nothing in this section affects the obligation of a restricted activity investment product intermediary to comply with regulations in force under section 43D of the Insurance Act 1989 in so far as they relate to the matters referred to in section 43E(1)(a)(iii) and (iv) of that Act.”.
5. Section 28 Substitute the following section for section 28: Substitute the following section for section 28:
“Obligations on product producers. 28.—(1) A product producer may not— (a) appoint an investment product intermediary to act on its behalf— (i) in receiving or transmitting orders for collective investment scheme instruments, or
(ii) in receiving or transmitting orders for company shares or bonds, that are listed on a stock exchange, or
(iii) in receiving or transmitting orders for prize bonds, or
(iv) in receiving or transmitting orders for tracker bonds, or
(v) in receiving or transmitting orders for insurance policies, or
(vi) in receiving or transmitting orders for personal retirement savings accounts, or
(vii) when acting as a deposit agent or as a deposit broker,
or
(b) pay commission to an investment product intermediary, or
(c) accept any orders transmitted, or any insurance placed, by an investment product intermediary on behalf of a client, unless to the best of the producer's knowledge, after having made reasonable enquiries, the investment product intermediary is appropriately qualified.
(2) An investment product intermediary is appropriately qualified for the purpose of subsection (1) only if the intermediary—
(a) is a certified person, or
(b) is of good character and is in compliance with this Act and, where the product producer is an insurance undertaking, is also in compliance with the Insurance Acts.
(3) For the purposes of subsection (2), a product producer is entitled to assume that an investment product intermediary is in compliance with this Act and with the Insurance Acts if the intermediary is authorised—
(a) by the supervisory authority under section 10 or 13 to operate as an investment business firm, or
(b) by a competent authority in another Member State to undertake activities similar to those undertaken by such a firm.
(4) Subsection (5) applies to and in respect of—
(a) product producers who appoint investment product intermediaries to act on their behalf for any purpose specified in subsection (1), and
(b) investment product intermediaries who are so appointed.
(5) On being requested to do so by notice in writing given by the supervisory authority, a product producer who has appointed an investment product intermediary shall, for so long as is specified in the notice, monitor the activities of the intermediary in order to be satisfied that the intermediary complies with the requirements imposed by or under this Act on investment product intermediaries. If requested to do so by that notice or by a further notice in writing given by the supervisory authority, the product producer shall also provide that authority with evidence in writing that that producer has not contravened subsection (7). The supervisory authority may provide a product producer with such information as appears to the supervisory authority necessary to enable the producer to comply with this subsection.
(6) A person who, for the purpose of obtaining an appointment of the kind referred to in section 27, gives information that the person knows or ought reasonably to know is false or misleading commits an offence.
(7) A product producer shall not—
(a) accept an order transmitted by an investment business firm on behalf of a client of the firm, or
(b) accept money belonging to such a client, or
(c) pay commission to the firm,
unless the firm is an investment business firm—
(d) that, to the best of the product producer's knowledge and belief, complies with this Act and, if the firm is an insurance intermediary, also complies with the Insurance Acts, and
(e) that is authorised under section 10 or is deemed to be authorised under section 26 or 63, and
(f) to which the product producer has given an appointment in writing in accordance with Part IV that has not been terminated.
(8) A product producer who contravenes subsection (7) commits an offence.
(9) In this section—
‘commission’ includes fee and any other form of remuneration.
(10) This section applies to and in respect of investment product intermediaries appointed before or after the commencement of item 5 of Part 11 of Schedule 3 to the Central Bank and Financial Services Authority of Ireland Act 2004.”.
6. Section 52 Substitute the following subsection for subsection (6): Substitute the following subsection for subsection (6):
“(6) If— “(6) If—
(a) an authorised investment business firm maintains an account with a credit institution or a financial institution, and (a) an authorised investment business firm maintains an account with a credit institution or a financial institution, and
(b) the account contains money, or relates to investment instruments or documents of title, entrusted to or received by the firm for or on account of a client, (b) the account contains money, or relates to investment instruments or documents of title, entrusted to or received by the firm for or on account of a client,
the firm commits an offence if it fails to designate the account as a ‘section 52 account’ in all of its financial records. This subsection does not apply to an authorised investment business firm that is a certified person.”. the firm commits an offence if it fails to designate the account as a ‘section 52 account’ in all of its financial records. This subsection does not apply to an authorised investment business firm that is a certified person.”.
7. Section 53 Substitute the following subsections for subsection (1): Substitute the following subsections for subsection (1):
“(1) This section applies to the following persons: “(1) This section applies to the following persons:
(a) the supervisory authority; (a) the supervisory authority;
(b) employees and officers of that authority; (b) employees and officers of that authority;
(c) the members of any Board of that authority; (c) the members of any Board of that authority;
(d) the Regulatory Authority; (d) the Regulatory Authority;
(e) members and officers of the Regulatory Authority and employees of the Bank. (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.”. (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.”.
8. Section 58 Substitute the following subsections for subsection (1): Substitute the following subsections for subsection (1):
“(1) If the Bank grants approval under section 56, or consents to a proposed amendment to a memorandum or article of association or rules, it may, in the interests of the proper and orderly regulation and supervision of approved professional bodies or certified persons, also do all or any of the following: “(1) If the Bank grants approval under section 56, or consents to a proposed amendment to a memorandum or article of association or rules, it may, in the interests of the proper and orderly regulation and supervision of approved professional bodies or certified persons, also do all or any of the following:
(a) make its approval or consent subject to such conditions or requirements as it considers fit; (a) make its approval or consent subject to such conditions or requirements as it considers fit;
(b) impose conditions or requirements that relate to the affairs or operation of an associated undertaking or related undertaking; (b) impose conditions or requirements that relate to the affairs or operation of an associated undertaking or related undertaking;
(c) amend or revoke conditions or requirements imposed under this subsection; (c) amend or revoke conditions or requirements imposed under this subsection;
(d) at any time after approving a professional body impose conditions or requirements on the body, including— (d) at any time after approving a professional body impose conditions or requirements on the body, including—
(i) a requirement that the body amend any memorandum of association or articles of association of the body, and (i) a requirement that the body amend any memorandum of association or articles of association of the body, and
(ii) if the body has rules relating to the provision of investment business services or investment advice by certified persons, or the regulation and supervision of certified persons — a requirement that the body amend or revoke those rules. (ii) if the body has rules relating to the provision of investment business services or investment advice by certified persons, or the regulation and supervision of certified persons — a requirement that the body amend or revoke those rules.
(1A) The Minister may, from time to time in the interests of the proper and orderly regulation and supervision of approved professional bodies or certified persons, issue guidelines to the Bank with respect to the imposition by the Bank of conditions and requirements under subsection (1). However, the Minister is required to obtain the consent of the Minister for Justice, Equality and Law Reform before issuing any such guidelines that relate to an approved body of lawyers. (1A) The Minister may, from time to time in the interests of the proper and orderly regulation and supervision of approved professional bodies or certified persons, issue guidelines to the Bank with respect to the imposition by the Bank of conditions and requirements under subsection (1). However, the Minister is required to obtain the consent of the Minister for Justice, Equality and Law Reform before issuing any such guidelines that relate to an approved body of lawyers.
(1B) As soon as practicable after issuing guidelines under subsection (1A), the Minister shall arrange for notice of their issue to be published in Irish Oifigiúil. Failure to comply with this subsection does not of itself affect the validity of the guidelines concerned. (1B) As soon as practicable after issuing guidelines under subsection (1A), the Minister shall arrange for notice of their issue to be published in Irish Oifigiúil. Failure to comply with this subsection does not of itself affect the validity of the guidelines concerned.
(1C) When imposing a condition or requirement under subsection (1), or amending such a condition or requirement, the Bank shall comply with any guidelines issued to it under subsection (1A).”. (1C) When imposing a condition or requirement under subsection (1), or amending such a condition or requirement, the Bank shall comply with any guidelines issued to it under subsection (1A).”.
9. Section 64 (a) In subsection (1), insert “and may, whenever appropriate, revoke the appointments of those persons” after “this Act”; (a) In subsection (1), insert “and may, whenever appropriate, revoke the appointments of those persons” after “this Act”;
(b) substitute the following subsection for subsection (4): (b) substitute the following subsection for subsection (4):
“(4) In this section, ‘responsible authority’ means— “(4) In this section, ‘responsible authority’ means—
(a) the Governor of the Bank, or (a) the Governor of the Bank, or
(b) the Chief Executive of the Regulatory Authority, or (b) the Chief Executive of the Regulatory Authority, or
(c) any person to whom the Governor of the Bank or the Chief Executive of that Authority has delegated responsibility for appointing persons under this section.”. (c) any person to whom the Governor of the Bank or the Chief Executive of that Authority has delegated responsibility for appointing persons under this section.”.
10. Section 71 Substitute the following subsection for subsection (4): Substitute the following subsection for subsection (4):
“(4) The Minister may lay before each House of the Oireachtas a report forwarded under subsection (2) if the Minister thinks it proper to do so having regard to the public interest and the rights of any person referred to in the report.”. “(4) The Minister may lay before each House of the Oireachtas a report forwarded under subsection (2) if the Minister thinks it proper to do so having regard to the public interest and the rights of any person referred to in the report.”.
11. Section 74 Repeal the section. Repeal the section.
12. Section 78 In subsection (3), substitute the following paragraph for paragraph (c): In subsection (3), substitute the following paragraph for paragraph (c):
“(c) a person authorised by the Chief Executive of the Regulatory Authority;”. “(c) a person authorised by the Chief Executive of the Regulatory Authority;”.
13. Section 79 Substitute the following subsection for subsection (1): Substitute the following subsection for subsection (1):
“(1) A person who is found guilty of an offence under section 9, 10(16), 16(14), 19(1)(b), 21(9), 23(1), 23(15), 28(6) and (9), 30, 34(1), 34(3), 35(4), 36(6), 46(2), 52(3), 52(5), 52(6), 52(9), 54(6), 56(9), 61(14), 75(3), 78(2), 79(4), 79(7), 79(8) of, or paragraph 8(3) of the First Schedule to this Act is liable— “(1) A person who is found guilty of an offence under section 9, 10(16), 16(14), 19(1)(b), 21(9), 23(1), 23(15), 28(6) and (9), 30, 34(1), 34(3), 35(4), 36(6), 46(2), 52(3), 52(5), 52(6), 52(9), 54(6), 56(9), 61(14), 75(3), 78(2), 79(4), 79(7), 79(8) of, or paragraph 8(3) of the First Schedule to this Act is liable—
(a) on summary conviction to a fine not exceeding €1,250 or, in the case of a natural person, to imprisonment for a term not exceeding 12 months, or both, or (a) on summary conviction to a fine not exceeding €1,250 or, in the case of a natural person, to imprisonment for a term not exceeding 12 months, or both, or
(b) on conviction on indictment, to a fine not exceeding €1,250,000 or, in the case of a natural person, to imprisonment for a term not exceeding 10 years, or both.”. (b) on conviction on indictment, to a fine not exceeding €1,250,000 or, in the case of a natural person, to imprisonment for a term not exceeding 10 years, or both.”.
14. Second Schedule Repeal the Schedule. Repeal the Schedule.

PART 12 Amendment of Consumer Credit Act 1995
Item Provision inserted Amendment
1. Section 2 (a) In subsection (1), insert the following definition after the definition of “borrower”:
“‘business’ includes trade and profession;”;
(b) in subsection (1), substitute the following definition for the definition of “consumer”:
“‘consumer’ means—
(a) a natural person acting outside the person's business, or
(b) any person, or person of a class, declared to be a consumer in an order made under subsection (9);”;
(ba) in subsection (1), to substitute the following definition for the definition of “housing loan”:
“‘housing loan’ means—
(a) an agreement for the provision of credit to a person on the security of a mortgage of a freehold or leasehold estate or interest in land—
(i) for the purpose of enabling the person to have a house constructed on the land as the principal residence of that person or that person's dependants, or
(ii) for the purpose of enabling the person to improve a house that is already used as the principal residence of that person or that person's dependants, or
(iii) for the purpose of enabling the person to buy a house that is already constructed on the land for use as the principal residence of that person or that person's dependants,
or
(b) an agreement for refinancing credit provided to a person for a purpose specified in paragraph (a)(i), (ii) or (iii), or
(c) an agreement for the provision of credit to a person on the security of a mortgage of a freehold or leasehold estate or interest in land on which a house is constructed where the house is to be used, or to continue to be used, as the principal residence of the person or the person's dependants, or
(d) an agreement for the provision of credit to a person on the security of a mortgage of a freehold or leasehold estate or interest in land on which a house is, or is to be, constructed where the person to whom the credit is provided is a consumer;”;
(c) in subsection (1), substitute the following definition for the definition of “mortgage intermediary”:
“‘mortgage intermediary’ means a person (other than a mortgage lender or credit institution) who, in return for commission or some other form of consideration—
(a) arranges, or offers to arrange, for a mortgage lender to provide a consumer with a housing loan, or
(b) introduces a consumer to an intermediary who arranges, or offers to arrange, for a mortgage lender to provide the consumer with such a loan;”;
(d) in subsection (1), substitute the following definition for the definition of “mortgage lender”:
“ ‘mortgage lender’ means a person who carries on a business that consists of or includes making housing loans;”;
(e) insert the following subsection after subsection (8):
“(9) The Minister for Finance may, by order notified in Iris Oifigiúil, declare any specified person, or any person of a specified class of persons, to be a consumer for the purposes of the definition of ‘consumer’ in subsection (1).”.
2. Section 12 Substitute the following subsections for subsections (1) and (2):
“(1) A person commits a summary offence under this Act if the person—
(a) in Part IA, contravenes section 7(2) or (3), 8(2), 8D or 8F, or
(b) in Part IB, contravenes section 8K(2) or (3), 8L(2) or 8P, or
(c) in Part II, contravenes section 26 or 27, or regulations under section 28, or
(d) in Part III, contravenes section 39, or
(e) in Part IV, contravenes section 43(2), or
(f) in Part VI, contravenes section 61, 64 (1) or 69, or
(g) in Part VII, contravenes section 87 or 91, or
(h) in Part VIII, contravenes section 93(6) or (9), 94, 95, 98(4) or (5), 99, 105(3) or (4), 106(2) or (3), or
(i) in Part IX, contravenes section 116(1) or (2), 117, 122(3), 123, 124, 128, 129(2), 130, 131(4) or (5), 132, 133(1) or (2), 134 or 135(3), or
(j) in Part X, contravenes section 138, 139, 142 or 143(2), or regulations made under section 137, or
(k) in Part XI, contravenes section 144(1) or (3), 145 or 148.
(2) A person commits an offence under this Act (other than a summary offence) if the person—
(a) in Part IV, contravenes section 45, 46 or 49, or
(b) in Part V, contravenes section 54, or
(c) in Part VIII, contravenes section 96, 97, 98(1) or (2), 100, 101, 102, 103(2), 107, 110 or 111, or
(d) in Part IX, contravenes section 118 or 127, or
(e) in Part X, contravenes section 140, or
(f) in Part XI, contravenes section 146, or
(g) in Part XII, contravenes section 149(1), (12A) or (12C), section 149A(2), (14) or (16) or a direction given under section 149(5) or (6) or section 149A(6) or (7).”.
3. Section 116 (a) Substitute the following subsection for subsection (7):
“(7) Except as provided by subsection (7A), an authorisation remains in force for 12 months from the date specified in the authorisation.
(7A) In the case of a particular applicant, or an applicant of a particular class designated by the Bank for the purposes of this subsection, the Bank may, if it so chooses, grant an authorisation for a period longer than 12 months, subject to such conditions or requirements as the Bank specifies. If the Bank grants an authorisation for a period longer than 12 months, the authorisation remains in force for that period from the date specified in the authorisation.”.
(b) Substitute the following subsection for subsection (9):
“(9) The Bank may refuse to grant an authorisation on any of the following grounds:
(a) the applicant does not satisfy the condition specified in subsection (1)(b);
(b) the applicant, or any business with which the applicant is or has been associated, has, during the previous 5 years, been convicted of an offence that, if committed by a natural person, would be punishable by imprisonment;
(c) the applicant is the holder of—
(i) a bookmaker's licence issued under the Betting Act 1931, or
(ii) a licence for the sale of intoxicating liquor granted under the Licensing Acts 1833 to 1994, or
(iii) a gaming licence issued under the Gaming and Lotteries Act 1956, or
(iv) a pawnbroker's licence granted under the Pawnbrokers Act 1964, or
(v) a moneylender's licence;
(d) the applicant has failed to provide a current Revenue tax clearance certificate in respect of himself or his business;
(e) the applicant is not, in the opinion of the Bank, a fit and proper person to carry on business as a mortgage intermediary.”;
(c) Substitute the following subsection for subsection (11):
“(11) The Bank may suspend or revoke an authorisation on any of the following grounds:
(a) the holder no longer satisfies the condition specified in subsection (1)(b);
(b) the holder, or any business entity with which the holder is associated, is convicted of an offence that, if committed by a natural person, would be punishable by imprisonment;
(c) the holder has become the holder of—
(i) a bookmaker's licence issued under the Betting Act 1931, or
(ii) a licence for the sale of intoxicating liquor granted under the Licensing Acts 1833 to 1994, or
(iii) a gaming licence issued under the Gaming and Lotteries Act 1956, or
(iv) a pawnbroker's licence granted under the Pawnbrokers Act 1964, or
(v) a moneylender's licence;
(d) the holder is failing, or has failed, to provide a current Revenue tax clearance certificate in respect of the holder or the holder's business;
(e) the holder is failing, or has failed to comply, with a condition or requirement imposed on the holder under subsection (7);
(f) the applicant is contravening or has contravened a regulation in force under subsection (10);
(g) the holder is no longer, in the opinion of the Bank, a fit and proper person to carry on the business of a mortgage intermediary;
(h) the Bank would, if the holder were an applicant for an authorisation, be entitled to refuse to grant an authorisation to the applicant on a ground specified in subsection (9).”.
4. Section 149 (as substituted by item 42 of Part 21 of Schedule 1 of the Central Bank and Financial Services Authority of Ireland Act 2003) Insert the following subsections after subsection (12): “(12A) A credit institution shall not impose a charge for providing a service to a customer or group of customers if— (a) the charge has not been previously notified to the Bank or to the Director, or (b) the charge exceeds the charge notified for the service in accordance with subsection (1), or (c) the charge does not comply with a direction issued by the Bank under this section.
(12B) The Bank may, by notice given in writing, require a specified credit institution, or credit institutions of a specified class, to publish in such publications, and within such timeframes, as are specified in the notice details of the amounts of charges notified to the Bank under this section.
(12C) A credit institution to which a notice has been given under subsection (12B) shall comply with the notice within the timeframe specified in the notice.”.
5. Section 149A (as substituted by item 43 of Part 21 of Schedule 1 of the Central Bank and Financial Services Authority of Ireland Act 2003) (a) Substitute “regulated business” for “bureau de change business”, wherever occurring; (b) Substitute the following subsections for subsection (14): “(14) A holder of an authorisation shall not impose a charge for providing a service to a customer or group of customers if— (a) the charge has not been previously notified to the Bank or to the Director, or
(b) the charge exceeds the charge notified for the service in accordance with subsection (2), or
(c) the charge does not comply with a direction issued by the Bank under this section.
(15) The Bank may, by notice given in writing, require a specified holder of an authorisation, or holders of a specified class of authorisation, to publish in such publications, and within such timeframes, as are specified in the notice details of the amounts of charges notified to the Bank under this section.
(16) A holder of an authorisation to whom a notice has been given under subsection (15) shall comply with the notice within the timeframe specified in the notice.
(17) In this section—
‘bureau de change business’ has the same meaning as in section 28 of the Central Bank Act 1997 (as substituted by section 27 of the Central Bank and Financial Services Authority of Ireland Act 2004);
‘service’ means any service provided by the holder of an authorisation to a customer in relation to a bureau de change business or money transmission business carried on by that holder;
‘money transmission business’ has the same meaning as in section 28 of the Central Bank Act 1997 (as substituted by section 27 of the Central Bank and Financial Services Authority of Ireland Act 2004).”.

PART 13 Amendment of Netting of Financial Contracts Act 1995
Item Provision inserted Amendment
1. Section 1 In the definition of “financial contracts”, substitute the following paragraph for paragraph (g):
“(g) contracts designated by regulations made under section 3.”.

PART 14 Amendment of Credit Union Act 1997
Item Provision affected or inserted Amendment Amendment
1. Sections 37A, 37B, 37C, 37D, 37E and 37F Insert the following sections after section 37: Insert the following sections after section 37:
Sections 37A, 37B, 37C, 37D, 37E and 37F “Member to receive written notice of loan approval. 37A.—(1) On approving a loan in accordance with section 36 or 37, a credit union shall, in writing, notify the member who applied for the loan of the approval and of any time limit within which the approval will expire.
(2) A notice under subsection (1) may be in a form that, when endorsed by the member on accepting a loan offered by the credit union, constitutes a credit agreement for the purposes of section 37B and 37C.
Credit agreement in respect of loans exceeding €200. 37B.—(1) If the amount of a loan approved by a credit union exceeds €200, the credit union shall ensure that—
Credit agreement in respect of loans exceeding €200. (a) a credit agreement is entered into in writing and signed by the member concerned and by or on behalf of all other parties to the agreement, and
(b) a copy of the agreement—
(i) is handed personally to the member immediately after the agreement is entered into, or
(ii) is delivered or sent to the member within 10 days after the agreement is entered into, and
(c) any contract of guarantee relating to the loan is in writing and signed by the guarantor and by or on behalf of all other parties to the agreement, and a copy of the guarantee and the agreement—
(i) is handed personally to the guarantor immediately after the contract is entered into, or
(ii) is delivered or sent to the guarantor within 10 days after the contract is entered into.
(2) For the purposes of this section, a contract of guarantee—
(a) includes the indemnity referred to in section 35(1), and
(b) may form part of the relevant agreement or may be in a separate document.
(3) A credit union that makes a loan without having complied with subsection (1) commits an offence.
(4) If a credit union is found guilty of an offence against subsection (3), the following provisions apply:
(a) the credit union is taken to have waived all interest agreed to be paid by the member in respect of the loan;
(b) the member, or the member's personal representative, is entitled to recover as a debt, by proceedings brought in a court of competent jurisdiction, any interest paid in respect of the loan.
Contents of credit agreements. 37C.—(1) When entering into a credit agreement with a member, a credit union shall ensure that it contains a statement setting out the following particulars:
(a) the name and address of each party to the agreement;
(b) the amount of the loan provided under the agreement and the total amount payable in respect of the loan;
(c) details of the security (if any) given in respect of the loan;
(d) the date or dates on which the loan is to be provided (unless unascertainable at the time of the agreement);
(e) the number of repayment instalments under the agreement and amount of each of those instalments;
(f) the date, or the method of determining the date, on which each repayment instalment is payable;
(g) the rate of interest charged in respect of the loan and the relevant APR;
(h) the circumstances in which that APR may be amended;
(i) any charges that, although not included in the calculation of the APR, must be paid by the member in specified circumstances;
(j) the date on which the loan expires;
(k) the manner in which the member can terminate the agreement before the final repayment instalment is payable and the cost to the member of terminating the agreement;
(l) any cost or penalty that the member may incur for failing to comply with the agreement.
(2) The credit union shall also ensure that the agreement specifies a cooling-off period under which the member—
(a) has a right to withdraw from the agreement without penalty if the member gives to the credit union a written notice to that effect within 10 days after the date of receiving a copy of the agreement, or
(b) may indicate that the member does not wish to exercise the right.
(3) The indication referred to in subsection (2)(b) must be in the form of a statement signed by the member. The member's signature must be separate from, and additional to, the member's signature to the agreement.
(4) A credit union that fails to comply with subsection (1) or (2) commits an offence.
Notice of important information to be included in credit agreements. 37D.—(1) A credit union shall not enter into a credit agreement with a member, unless the agreement and the notice referred to in section 37A(1) display prominently on their respective front pages, in a form approved by the Bank, the following information:
Notice of important information to be included in credit agreements. (a) the amount of the loan;
Notice of important information to be included in credit agreements. (b) the period of the agreement;
(c) the number of repayment instalments;
(d) the total amount repayable to the credit union;
(e) the cost of the loan to the member;
(f) the APR in respect of the loan;
(g) particulars of the cooling-off period.
(2) A credit union that contravenes subsection (1) commits an offence.
Definition and calculation of ‘APR’ for the purposes of sections 37C and 37D. 37E.—(1) For the purposes of sections 37C and 37D—
Definition and calculation of ‘APR’ for the purposes of sections 37C and 37D. ‘APR’, in relation to a credit agreement entered into between a credit union and a member, means the annual percentage rate of charge.
Definition and calculation of ‘APR’ for the purposes of sections 37C and 37D. (2) The APR specified in a credit agreement must be that rate, on an annual basis that equalises the present value of all commitments (loans, repayments and charges), future or existing, agreed by the credit union and the member concerned, calculated in accordance with the mathematical formula set out in Annex II to the European Communities (Consumer Credit) Regulations 2000 (S.I. No. 294 of 2000) as in force from time to time.
Regulations for the purposes of sections 37A-37D. 37F.—The Minister may make regulations under section 182 as to the form and content of credit agreements and, for that purpose, may amend or modify sections 37A, 37B, 37C or 37D.”.
2. Section 114 (as amended by item 77 of Part 24 of the Central Bank and Financial Services Authority of Ireland Act 2003) (a) In subsection (1)(a), substitute “the Minister for Enterprise, Trade and Employment” for “the Minister”; (b) in subsection (1)(b), substitute “that Minister” for “the Minister”. (a) In subsection (1)(a), substitute “the Minister for Enterprise, Trade and Employment” for “the Minister”; (b) in subsection (1)(b), substitute “that Minister” for “the Minister”.
3. Section 125 Insert the following subsection after subsection (8): Insert the following subsection after subsection (8):
“(9) Nothing in this Part or in a credit union's rules prevents the Financial Services Ombudsman from investigating and adjudicating a complaint made against a credit union under Part VIIB of the Central Bank Act 1942 about the provision of, or the failure to provide, a financial service, so long as the complaint— “(9) Nothing in this Part or in a credit union's rules prevents the Financial Services Ombudsman from investigating and adjudicating a complaint made against a credit union under Part VIIB of the Central Bank Act 1942 about the provision of, or the failure to provide, a financial service, so long as the complaint—
(a) falls within the jurisdiction of that Ombudsman under that Part, and (a) falls within the jurisdiction of that Ombudsman under that Part, and
(b) does not relate to a matter that involves only the governance of the credit union.”. (b) does not relate to a matter that involves only the governance of the credit union.”.
4. Section 126 Insert the following subsections after subsection (5): Insert the following subsections after subsection (5):
“(6) The Financial Services Ombudsman may, if satisfied that the circumstances make it appropriate to do so, deal with a dispute that would, but for subsection (3), be a complaint in respect of which that Ombudsman would have jurisdiction under Part VIIB of the Central Bank Act 1942. “(6) The Financial Services Ombudsman may, if satisfied that the circumstances make it appropriate to do so, deal with a dispute that would, but for subsection (3), be a complaint in respect of which that Ombudsman would have jurisdiction under Part VIIB of the Central Bank Act 1942.
(7) If the Financial Services Ombudsman elects to deal with a dispute as provided by subsection (6), subsection (3) ceases to apply to the dispute.”. (7) If the Financial Services Ombudsman elects to deal with a dispute as provided by subsection (6), subsection (3) ceases to apply to the dispute.”.
5. Section 127 Delete the section. Delete the section.

PART 15 Amendment of Investor Compensation Act 1998

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