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S.I. No. 380/2006 - European Communities (Reinsurance) Regulations 2006

Type Statutory Instrument

Publication 2006-07-13

Last updated 2015-11-20

State Partially repealed superseded text

Text As published

Source Irish Statute Book

articles Not indexed

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.

9 amending acts · 2015-11-20, Finance (Miscellaneous Provisions) Act 2015

Reform history JSON API

(3) The undertaking may invest in derivative instruments to the extent that they help to reduce investment risks or facilitate efficient portfolio management. However the undertaking shall value those investments on a prudent basis, taking into account the underlying assets, and must include a valuation of the relevant institution's assets. The undertaking shall also avoid excessive risk exposure to a single counterparty and to other derivative operations.

(4) The requirements specified in paragraph (2)(d) and (e) do not apply to investment in government bonds.

(5) The Bank may prescribe detailed rules as to how reinsurance undertakings, or any kind of reinsurance undertakings, must comply with this Regulation. Those rules may include provisions fixing the conditions for the use of amounts outstanding from a SPRV for use as assets covering a reinsurance undertaking's technical reserves and providing for compliance with those rules by reinsurance undertakings.

(6) A reinsurance undertaking that, without reasonable excuse, fails comply with paragraph (1) commits an offence.

Reinsurance undertaking required to keep register of assets

27.

(1) An authorised reinsurance undertaking established in the State shall—

(a) establish and maintain a register showing the assets representing the undertaking's technical and equalisation reserves (including mathematical reserves) required by these Regulations in respect of reinsurance business carried on by it, whether in the State or elsewhere and

(b) provide the Bank with a certificate certifying the value of those assets as at the date on which the undertaking is required to lodge its financial statements with the Bank.

The value of those assets is to be that contained in the undertaking's financial statement for the relevant financial year.

(2) The undertaking shall—

(a) keep the register at its head office in the State, and

(b) ensure that the register contains current details of the assets that represent reserves for reinsurance business that the undertaking has carried on, whether in the State or elsewhere, and

(c) make the register available during normal office hours of the undertaking for inspection by any officer of the Bank who asks to see it.

(3) A reinsurance undertaking that, without reasonable excuse, fails to comply with this Regulation commits an offence.

PART 5 RESTRICTIONS ON OPERATING SPECIAL PURPOSE REINSURANCE VEHICLES

Operation of SPRVs prohibited unless authorised

28.

(1) A person may operate as a SPRV in the State only in accordance with a SPRV authorisation granted by the Bank or by a competent authority of another Member State.

(2) A person who operates as a SPRV in contravention of paragraph (1) commits an offence.

(3) If a person is found guilty of an offence under paragraph (2), the Bank shall take all reasonably practicable measures to ensure that the person ceases to operate as a SPRV within the State and within every other Member State.

SPRV restricted to transacting reinsurance business of a kind permitted by its authorisation

29.

(1) A SPRV (other than an exempt undertaking) may transact in the State reinsurance business of a particular kind only if it is an authorised SPRV and the authorisation extends to that kind of business.

(2) A SPRV that operates in contravention of paragraph (1) commits an offence.

(3) If a SPRV is found guilty of an offence under paragraph (2), the Bank shall take all reasonably practicable measures to ensure that the SPRV ceases to transact in the State and in every other Member State the kind of reinsurance business to which the contravention relates.

PART 6 AUTHORISATION OF SPRVS

Applications to operate SPRVs

30.

(1) An application for authorisation to operate as a SPRV must—

(a) be lodged with the Bank in writing, and

(b) be accompanied by a copy of the proposed SPRV contract or a statement containing a description of that contract, and

(i) the ceding insurance undertaking or reinsurance undertaking under the relevant SPRV contract, and

(ii) the persons (if any) who are or will be appointed to act as trustees of the SPRV's assets, and

(iii) the persons who are or will be officers of the SPRV, and

(iv) those persons who have qualifying holdings (whether direct or indirect) in the SPRV and the amounts of those holdings, and

(v) the persons who are providing or will provide management and other professional services (such as accounting) to the SPRV, and

(d) be accompanied by a copy of the SPRV's memorandum and articles, or proposed memorandum and articles, of association, and

(e) contain such other information, and be accompanied by such documents, as the Bank reasonably requires, and

(f) be accompanied by the fee (if any) prescribed under section 33K of the Central Bank Act 1942 for the purposes of this section.

(2) The description referred to in paragraph (1)(b) must include the following:

(a) any triggering event;

(b) the aggregate limit of the relevant SPRV contract (if any);

(3) In considering an application made under this Regulation, the Bank may notice in writing given to the applicant, require the applicant to provide such additional information and documents as are reasonably necessary to enable the application to be determined. Among the kinds of information that may be required under this paragraph is information about the directors and shareholders of the SPRV and the trustees of its assets.

(4) If such a requirement is not complied with within a period specified in the notice (being not less than 28 days) the Bank may summarily reject the application.

Bank to grant or refuse application for SPRV

31.

(1) Subject to paragraphs (2) and (3), the Bank shall grant an application for a SPRV authorisation if satisfied that—

(a) the application complies with Regulation 30, and

(b) the objects of the SPRV are limited to operating as such.

(2) The Bank shall refuse an application for a SPRV authorisation if it is satisfied that—

(a) the SPRV is not of good repute or is not, or will not be, able to fulfil, in a proper manner, the responsibilities that are imposed on an authorised SPRV by or under these Regulations, or

(b) any officer of the SPRV is not a person of good repute, or

(d) any person who has a qualifying holding in the SPRV is not of good repute, or

(e) the SPRV, or any officer of the SPRV, has, during the immediately preceding 5 years, been convicted of an offence involving breach of trust, fraud or dishonesty, or

(f) any officer of the SPRV is prohibited from being or acting as an officer of a reinsurance undertaking or a SPRV under a law of another Member State, or

(g) any officer of the SPRV is prohibited from being or acting as an officer of a reinsurance undertaking or a SPRV under a law of a third country in which, in the opinion of the Bank, there exists a regulatory regime equivalent to these Regulations.

(3) The Bank shall also refuse such an application if it is satisfied that—

(a) close links that exist between the SPRV and other persons, or

(b) a law or administrative provision of a third country that governs one or more persons with which the SPRV has close links, or

would prevent or inhibit the effective exercise of the Bank's supervisory functions under these Regulations.

(4) A SPRV authorisation—

(a) must be in a form that will enable any interested party, by consulting the Register, to verify that the SPRV is authorised to operate as such, and

(b) must, whether or not any other information is included, specify—

(i) the SPRV's name, and

(ii) the addresses of its head office and registered office.

(5) The Bank may not refuse an application for a SPRV authorisation without giving the applicant an opportunity to make representations in writing as to why the application should not be refused.

(6) If the Bank refuses such an application, it shall promptly give to the applicant a written notice of refusal, which must include a statement setting out the reasons for the refusal.

(7) On granting an authorisation under this Regulation, the Bank shall record in the Register the relevant particulars of the SPRV.

SPRVs taken to be authorised if operating before 10 December 2005

32.

(1) A SPRV established in the State that, immediately before 10 December 2005,⁷ had a right to operate as such is taken to be the holder of a SPRV authorisation granted by the Bank to carry on the same kind of operation as it was entitled to carry on immediately before that commencement, subject to compliance with paragraph (2).

(2) Not later than 10 December 2007, every SPRV to which paragraph (1) applies shall satisfy the Bank that the SPRV has complied with the following requirements:

(a) the SPRV is incorporated as—

(i) a company limited by shares or guarantee or an unlimited company, or

(ii) a European company;

(b) the objects of the SPRV restrict it to operating as such;

(c) the officers of the SPRV are persons of good repute and have the professional qualifications and experience necessary to operate a SPRV;

(d) both the head office and registered office of the SPRV are located in the State;

(e) no close links between the SPRV and other persons exist that would prevent or inhibit the effective exercise of the Bank's supervisory functions under these Regulations;

(f) the SPRV has complied with, and is continuing to comply with, the rules (if any) in force under Regulation 39.

Power to impose, vary and revoke conditions of SPRV authorisation

33.

(1) When granting a SPRV authorisation or at any time while a SPRV authorisation has effect, the Bank may impose such conditions with respect to the conduct of the business concerned as it considers appropriate.

(2) The Bank may, from time to time, by notice in writing given to the SPRV concerned, vary or revoke a condition imposed in accordance with paragraph (1) or previously varied in accordance with this paragraph.

(3) If it thinks it would be in the general public interest to do so, the Bank may by notice in writing, also impose conditions with respect to the operation of a SPRV established in another Member State with a view to ensuring that the SPRV carries out in a proper manner the responsibilities that are imposed on SPRVs by or under these Regulations.

(4) In imposing or varying a condition under this Regulation, the Bank shall ensure that the condition, or the condition as varied, accords with the objects of the Reinsurance Directive and these Regulations in so far as they apply to SPRVs.

(5) The imposition, variation or revocation of a condition under this Regulation does not relieve a SPRV from its obligations to providers of financial accommodation or to the other parties to any SPRV contract to which the SPRV was a party when the condition was imposed, varied or revoked.

Effect of SPRV authorisation

34.

(1) A SPRV authorisation authorises its holder to carry on in the State and in every other Member State the kind or kinds of business specified in the authorisation subject to compliance with the requirements imposed by or under these Regulations and any other restrictions imposed by law.

(2) The fact that the Bank has granted a SPRV authorisation in respect of an entity does not of itself make the Bank liable for any financial loss incurred by a person—

(a) because the SPRV, or any officer, employee or agent of the SPRV, has contravened or failed to comply with a provision of these Regulations or any condition of the authorisation, or

(b) because the SPRV has become subject to an insolvency process, such as winding up or bankruptcy.

(3) An authorisation granted under these Regulations remains in force until it is cancelled under this Part.

(4) A SPRV authorisation granted, or taken to have been granted, to a SPRV in accordance with a corresponding law of another Member State also authorises the SPRV to carry on the same kind of operation as it was entitled to carry on in the other Member State, subject to compliance with that law and any requirements imposed under it and with the laws of the State in so far as they apply to and in respect of an authorised SPRV established in the State.

Cancellation of authorisation on application of SPRV

35.

(1) The Bank may, on the application of an authorised SPRV established in the State, cancel the authorisation. The application must be accompanied by the authorisation.

(2) A SPRV whose authorisation is cancelled under this Regulation, or under a provision of a corresponding law of another Member State, ceases to be entitled to operate in the State as such.

Cancellation of authorisation otherwise than on application of person operating a SPRV

36.

(1) The Bank may cancel the authorisation of a SPRV established in the State on being satisfied on reasonable grounds that the vehicle is failing, or has failed, to comply with any condition of the authorisation or with any requirement imposed on the SPRV by or under this Part.

(2) The Bank may also cancel the authorisation of a SPRV on any of the following grounds:

(a) the SPRV has not operated as such within the immediately preceding 6 months;

(b) the authorisation was obtained by means of a false or misleading representation;

(d) since the authorisation was granted, the circumstances under which it was granted have changed to the extent that an application for an authorisation would be refused had it been made in the changed circumstances;

(e) the SPRV is failing, or has failed, to comply with a rule in force under Regulation 39;

(f) the SPRV has failed, within the permitted period, to implement a restoration plan prepared under Regulation 60;

(g) the SPRV, any officer of the SPRV or any trustee of its assets is convicted of—

(i) an offence under these Regulations or under any enactment or statutory instrument specified in Schedule 2 to the Central Bank Act 1942 , or

(ii) an offence involving fraud, dishonesty or breach of trust.

(3) A SPRV whose authorisation is cancelled under this Regulation ceases to be entitled to operate as such in the State or in any other Member State.

(4) The Bank may cancel a SPRV authorisation under this Regulation only after it has, by notice in writing given to the SPRV, informed the SPRV of its intention to cancel that authorisation. The notice must specify—

(a) the grounds on which it is proposed to cancel the authorisation, and

(b) that the SPRV may, within 21 days after the giving of the notice, make written representations to the Bank showing why the authorisation should not be cancelled.

(5) Not later than 21 days after being given a notice under paragraph (4), the SPRV may make written representations to the Bank as to why the SPRV's authorisation should not be cancelled.

(6) As soon as practicable after cancelling a SPRV authorisation under this Regulation, the Bank shall give written notice of the cancellation to the SPRV concerned. The notice must include a statement of the reasons for the cancellation.

(7) A SPRV shall return its authorisation to the Bank as soon as practicable after being notified that the authorisation has been cancelled under this Regulation.

(8) A SPRV that, without reasonable excuse, fails to comply with paragraph (7 commits an offence.

(9) The cancellation of a SPRV authorisation under this Regulation or Regulation 35 does not relieve the SPRV from its obligations to the providers of financial accommodation or to the other parties to any SPRV contract to which the SPRV was a party at the time of the cancellation.

Consequences of cancellation of SPRV authorisation under corresponding law of another Member State

37.

If the authorisation of a SPRV established in another Member State is cancelled in accordance with a corresponding law of that other Member State, the SPRV ceases to be entitled to operate in the State.

PART 7 OPERATION OF SPRVS

SPRV to comply with certain requirements

38.

(1) An authorised SPRV shall—

(a) maintain sound administrative and accounting procedures, adequate internal control mechanisms and risk management requirements, and

(b) satisfy accounting, prudential and statistical information requirements

in accordance with such requirements (if any) as the Bank notifies to the SPRV in writing from time to time.

(2) An authorised SPRV may not issue debt securities, unless the documents specifying the rights of the holders of the securities—

(a) make it clear that the SPRV is a legal entity separate from any third party involved in the establishment of the SPRV, and

(b) state the manner in which claims relating to such securities rank as between different security holders and limited in the event of insufficient funds, and

(c) make it a condition of securities issued or to be issued by the SPRV that the holders of the securities undertake not to initiate or participate in insolvency proceedings against the SPRV until those securities are discharged, and

(d) specifies any other conditions determined by the Bank for the purposes of this subparagraph and notified in writing to the SPRV.

(3) In making a determination for the purposes of paragraph (2)(d), the Bank shall have regard to the following factors:

(a) the need for all relevant material information to be disclosed;

(b) the need to avoid misinterpretation and to prevent abuse;

(d) the need to preserve the integrity of the market.

(4) An authorised SPRV that, without reasonable excuse, fails to comply with paragraph (1), or contravenes paragraph (2), commits an offence.

Bank may make rules specifying solvency requirements for SPRVs

39.

(1) The Bank may from time to time make rules with respect to the solvency requirements that are to apply to SPRVs.

(2) An authorised SPRV established in the State shall comply with rules in force under paragraph (1).

(3) An authorised SPRV that, without reasonable excuse, fails to comply with paragraph (2) commits an offence.

PART 8 ACQUISITION AND DISPOSAL OF QUALIFYING HOLDINGS IN REINSURANCE UNDERTAKINGS AND SPRVS

Interpretation: Part 8

40.

(1) In this Part—

“prescribed percentage level” means 20 per cent, 33 per cent or 50 per cent;

“prescribed entity” means any of the following:

(a) a reinsurance undertaking, an insurance undertaking, a credit institution or an investment firm authorised by a competent authority of a Member State;

(b) the parent undertaking of such an undertaking, institution or firm;

(2) This Part has effect despite anything in the Companies Acts to the contrary.

Restrictions on acquiring and disposing of qualifying holdings in reinsurance undertakings and SPRVs

41.

(1) A person shall not, directly or indirectly, acquire a qualifying holding in an authorised reinsurance undertaking or SPRV established in the State without having previously notified the Bank of the size of the holding.

(2) A person who has a qualifying holding in an authorised reinsurance undertaking or SPRV shall not, directly or indirectly, increase the holding without having previously notified the Bank of the increase, if, as a result of the increase—

(a) the percentage level of the voting rights or capital that the person holds would reach or exceed any of the prescribed percentage levels, or

(b) the undertaking or SPRV would become the person's subsidiary.

(3) A person shall not, directly or indirectly, dispose of a qualifying holding in an authorised reinsurance undertaking or SPRV without having previously notified the Bank of the size of the holding to be disposed of.

(4) A person shall not, directly or indirectly, decrease a qualifying holding in a reinsurance undertaking or SPRV without having previously notified the Bank if, as a result of the decrease—

(a) any of the percentage levels of the voting rights or capital that the person holds would fall below any of the prescribed percentage levels or

(b) the undertaking or SPRV would cease to be the person's subsidiary.

Bank to consult with other competent authorities in certain cases

42.

If an authorised reinsurance undertaking or SPRV would, as result of an acquisition of a qualifying holding, or of an increase in an existing qualifying holding, in the undertaking or SPRV by a prescribed entity, become a subsidiary, or become subject to the control, of a prescribed entity, the Bank shall consult with the competent authority responsible for supervising entities of the kind to which the prescribed entity belongs in the Member State concerned.

Obligation of reinsurance undertaking or SPRV to provide information

43.

(1) As soon as practicable after an authorised reinsurance undertaking or SPRV established in the State becomes aware of an acquisition of a holding in its capital so that the holding exceeds any of the prescribed percentage levels, the undertaking or SPRV shall, by notice in writing, inform the Bank of the acquisition.

(2) As soon as practicable after an authorised reinsurance undertaking or SPRV established in the State becomes aware of a disposal of a holding in its capital so that the holding falls below any of the prescribed percentage levels, the undertaking shall, by notice in writing, inform the Bank of the disposal.

(3) At such times as may be specified by the Bank and at least once in each year an authorised reinsurance undertaking or SPRV established in the State shall, by notice in writing, inform the Bank of—

(a) the names of shareholders or members who have qualifying holdings and

(b) the size of the holdings by reference, for example, to information received at annual general meetings of shareholders or members or as a result of compliance with the Companies Acts or any applicable rules relating to companies whose securities are listed on a stock exchange.

(4) As soon as practicable after being required to do so by the Bank, an authorised reinsurance undertaking or SPRV established in the State shall provide the Bank with information in writing concerning all shareholders of the undertaking or SPRV irrespective of the size of their respective shareholdings.

(5) As soon as practicable after being required to do so by the Bank, an authorised reinsurance undertaking or SPRV established in the State shall provide the Bank with information in writing concerning compliance by the undertaking or SPRV with the conditions (if any) specified in the relevant authorisation or prescribed by the Bank under these Regulations.

(6) A reinsurance undertaking or SPRV that, without reasonable excuse, fails to comply with a requirement of this Regulation commits an offence.

Bank may oppose certain acquisitions

44.

(1) Within 3 months after the date on which notice is given to it in accordance with Regulation 41(1) or (3), the Bank shall decide whether or not to oppose an acquisition of, or an increase in, a qualifying holding in an authorised reinsurance undertaking or SPRV established in the State.

(2) The Bank may oppose the acquisition or increase if, having regard to the need to ensure the prudent and sound management of the reinsurance undertaking or SPRV concerned, it is not satisfied as to the suitability of the person who, or the entity that, is proposing to acquire a qualifying holding in that undertaking or SPRV, or to increase such a holding.

Power of Court to make certain orders

45.

(1) If the Bank reasonably believes that—

(a) the control exercised by a person referred to in Regulation 41 would be inconsistent with the prudent and sound management of a reinsurance undertaking or SPRV established in the State, or

(b) a person is contravening or has contravened a provision of that Regulation,

it may apply to the Court for an order under paragraph (3) of this Regulation.

(2) On making an application under paragraph (1), the Bank shall serve a copy of the application on the person to whom the application relates. On being served with the notice, that person becomes the respondent to the application.

(3) On the hearing of an application made under paragraph (1), the Court may, on being satisfied that the Bank's belief is substantiated, make—

(a) an order directing the respondent not to acquire a qualifying holding, or to increase a qualifying holding, in the relevant reinsurance undertaking or SPRV, or

(b) if the respondent has already acquired such a holding, all or any of the following orders:

(i) an order directing the respondent to dispose of the holding or a specified part of it;

(ii) an order suspending the exercise of the voting rights attached to the relevant shares;

(iii) an order invalidating votes already exercised by holders of those shares.

PART 9 AUDITING OF ACCOUNTS OF REINSURANCE UNDERTAKINGS AND SPRVS

Responsibilities of auditors in respect of reinsurance undertakings and SPRVs

46.

(1) As soon as practicable after an auditor of an authorised reinsurance undertaking or authorised SPRV—

(a) forms the belief on reasonable grounds that circumstances exist that are likely to affect materially the ability of the undertaking or SPRV to fulfil its obligations to third parties, or to meet any of its material financial requirements, under these Regulations, or

(b) forms the belief on reasonable grounds that there are material defects in the financial systems and controls or accounting records of the undertaking or SPRV that are likely to have that effect, or

(c) decides to qualify any certificate that the auditor is required to provide in relation to financial statements or returns of the undertaking or SPRV under the Companies Acts, or

(d) decides to resign or not to seek re-election as auditor, or

(e) while conducting an audit of the affairs of another person that is in a control relationship with the undertaking or SPRV, becomes aware of any facts or decisions that are likely to materially affect the ability of the undertaking or SPRV to comply with financial requirements imposed by or under these Regulations,

the auditor shall report the matter to the Bank.

(2) As soon as practicable after preparing a report under this paragraph (1), an auditor shall send a copy of it to the undertaking or SPRV concerned.

(3) The responsibilities imposed on an auditor under this Regulation extend not only to transactions entered into in the State after the commencement of these Regulations but also to transactions entered into by a reinsurance undertaking or SPRV before, and in existence when, it began to carry on reinsurance business or to operate as an SPRV.

Bank may require auditor of reinsurance undertaking or SPRV to provide information

47.

(1) If the Bank considers it appropriate to do so, it may require an auditor of a reinsurance undertaking or SPRV to provide it with such information as it may specify in relation to the audit of the business of the undertaking or SPRV. The Bank may also require that, in providing any such information, the auditor must act independently of the undertaking or SPRV.

(2) The auditor shall comply with such a requirement as soon as practicable after being notified of it.

Auditor not liable to reinsurance undertaking or SPRV, etc. for having complied with this Part

48.

An auditor's duty to an authorised reinsurance undertaking or SPRV, to the shareholders or creditors of the undertaking or SPRV, or to any other interested person is not contravened only because the auditor has complied with a requirement imposed by or under this Part.

PART 10 PROVISIONS APPLICABLE TO BOTH REINSURANCE UNDERTAKINGS AND SPRVS

Bank to keep Register of Authorised Reinsurance Undertakings and SPRVs

49.

(1) The Bank shall establish and maintain a register called the Register of Authorised Reinsurance Undertakings and Special Purpose Reinsurance Vehicles.

(2) The Register must—

(a) be compiled electronically and be available in a form that is readily accessible to the public, and

(b) contain the names and principal business addresses of all authorised reinsurance undertakings and SPRVs and such other information relating to those undertakings and SPRVs as the Bank considers appropriate.

(3) Members of the public are entitled, without charge, to inspect the Register during the ordinary business hours of the Bank. However, the Bank may impose, on a cost recovery basis, a reasonable charge for providing a copy of the Register or of any entry in it.

(4) The Bank shall take all practicable steps to ensure that the Register is kept up to date.

Rights of appeal against certain Bank decisions made under these Regulations

50.

The following decisions of the Bank are appealable decisions for the purposes of Part VIIA of the Central Bank Act 1942 :

(a) a decision of the Bank refusing an application for a reinsurance authorisation or a SPRV authorisation;

(b) the failure of the Bank to make a decision with respect to such an application within 6 months after the application was made;

(c) a decision of the Bank under Regulation 15 or 17 cancelling a reinsurance authorisation or a decision of the Bank under Regulation 16 cancelling a reinsurance authorisation as to a particular kind of reinsurance business;

(d) a decision of the Bank under Regulation 36 cancelling a SPRV authorisation;

(e) a decision of the Bank under Regulation 12 imposing a condition on a reinsurance undertaking or varying such a condition;

(f) a decision of the Bank under Regulation 33 imposing a condition on a SPRV or varying such a condition;

(g) a direction given under Regulation 58 or 60;

(h) a requirement imposed under Regulation 59.

Consequences of cancellation of authorisation as regards other Member States

51.

As soon as practicable after cancelling—

(a) a reinsurance authorisation under Regulation 14, 15 or 17, or

(b) a reinsurance authorisation under Regulation 16 as to a particular kind of reinsurance business, or

the Bank shall notify the cancellation to the competent authority of each of the other Member States in which the relevant undertaking or SPRV carries on business.

PART 11 RESPONSIBILITIES OF THE BANK UNDER THESE REGULATIONS

Responsibilities of Bank with respect to authorised reinsurance undertakings and SPRVs established in the State

52.

(1) The Bank alone has responsibility for the financial supervision of authorised reinsurance undertakings and authorised SPRVs established in the State.

(2) Paragraph (1) applies to activities that the reinsurance undertaking or SPRV undertakes in the State and in any other Member State.

(3) The responsibility referred to in paragraph (1) extends to verifying the state of solvency of the entire business of an authorised reinsurance undertaking or SPRV established in the State (including the establishment and maintenance by the undertaking or SPRV of technical reserves and of the assets covering those reserves).

(4) The Bank may prescribe rules, not inconsistent with the Reinsurance Directive, relating to issues affecting the solvency of authorised reinsurance undertakings and SPRVs established in the State.

(5) In this Regulation, a reference to the entire business of an authorised reinsurance undertaking or SPRV established in the State includes any business carried on by it in another Member State or in a third country.

Bank to be responsible for enforcing continued compliance with obligations

53.

(1) The Bank shall take all appropriate measures in order to be satisfied that an authorised reinsurance undertaking or SPRV is complying with, or is able to continue to comply with, its obligations under these Regulations and any rules prescribed by the Bank in accordance with these Regulations.

(2) In performing its function under paragraph (1), the Bank has power to do either or both of the following:

(a) to make detailed enquiries regarding the business of an authorised reinsurance undertaking or SPRV;

(b) to take any measures with respect to an authorised reinsurance undertaking or SPRV, or the officers who control it, that are appropriate and necessary to ensure that the undertaking or SPRV complies with these Regulations and with any other laws with which the undertaking or SPRV is required to comply.

(3) For the purpose of making enquiries of the kind referred to in paragraph (2)(a), the Bank may—

(a) gather information or require the submission of documents concerning reinsurance and retroceding transactions entered into or proposed to be entered into by the undertaking or SPRV concerned, and

(b) carry out investigations at any premises at which the Bank reasonably believes that the undertaking is carrying on reinsurance business or the SPRV is conducting its operations.

Bank to collaborate with other competent authorities and the European Commission

54.

(1) The Bank shall collaborate with the competent authorities of the other Member States for the purpose of facilitating—

(a) the supervision of reinsurance business carried on by reinsurance undertakings and the operations of SPRVs within the European Communities, and

(b) the application of the Reinsurance Directive and these Regulations.

(2) The Bank shall collaborate closely with the European Commission for the purposes of—

(a) facilitating the supervision of the activities of reinsurance undertakings and SPRVs undertaken within the European Communities, and

(b) addressing any difficulties that may arise in the implementation of the Reinsurance Directive or these Regulations.

Bank to consult with other competent authorities before granting authorisation or when assessing compliance with conditions

55.

(1) The Bank shall consult the relevant competent authority of the other Member State responsible for the supervision of insurance undertakings, reinsurance undertakings credit institutions or investment firms before granting an authorisation to a reinsurance undertaking or SPRV that is—

(a) a subsidiary of an insurance or reinsurance undertaking authorised in another Member State, or

(b) a subsidiary of the parent undertaking of such an insurance or reinsurance undertaking, or

(2) The Bank shall consult the competent authority of the other Member State responsible for the supervision of credit institutions or investment firms before granting an authorisation to a reinsurance undertaking or SPRV that is—

(a) a subsidiary of a credit institution or investment firm that is authorised in another Member State, or

(b) a subsidiary of the parent undertaking of such a credit institution or investment firm, or

(3) In particular, the Bank shall—

(a) when assessing the suitability of the shareholders, and the reputation and experience of directors involved in the management, of another entity of the same group, consult with the authorities referred to in paragraphs (1) and (2), and

(b) either when involved in granting an authorisation to a reinsurance undertaking or SPRV or in assessing compliance by such an undertaking or SPRV with the conditions under which it is authorised to operate, inform each of the other competent authorities of the other Member States concerned of any information regarding the suitability of shareholders, and the reputation and experience of directors, that is of relevance to those authorities.

Bank to notify competent authority of other Member State of belief that reinsurance undertaking or SPRV of that State may be financially unsound

56.

(1) If—

(a) an authorised reinsurance undertaking that is established in another Member State is carrying on reinsurance business in the State, and

(b) the Bank forms the belief on reasonable grounds that the conduct of the undertaking's activities in the State might affect the undertaking's financial soundness,

the Bank shall, without delay, notify its belief to the competent authority of the Member State in which the undertaking is established. The competent authority of that other Member State is responsible for determining whether that undertaking is complying with the prudential rules laid down in or required by the Reinsurance Directive.

(2) If—

(a) an authorised SPRV that is established in another Member State is operating in the State, and

(b) the Bank forms the belief on reasonable grounds that the conduct of the SPRV's activities in the State might affect the SPRV's financial soundness,

the Bank shall, without delay, notify its belief to the competent authority of the Member State in which the SPRV is established. The competent authority of that other Member State is responsible for determining whether that SPRV is complying with the prudential rules laid down in or required by the Reinsurance Directive.

Limitations on Bank with respect to its supervisory functions under these Regulations

57.

(1) In performing its supervisory functions under these Regulations, the Bank may not, except as provided by rules in force under Regulation 39 or 61, require an authorised reinsurance undertaking or SPRV to submit for prior authorisation or to systematically notify—

(a) general and special policy conditions, or

(b) scales of premiums, or

(c) forms or other printed documents that the undertaking or SPRV intends to use when entering into cessions with insurance or reinsurance undertakings.

(2) Nothing in these Regulations prevents the Bank from requiring a reinsurance undertaking or SPRV—

(a) to produce to the Bank for approval the memorandum and articles of association of the undertaking or SPRV, or

(b) to produce documents that the Bank requires in the ordinary course of performing its supervisory functions under these Regulations.

PART 12 SPECIAL POWERS OF BANK TO DEAL WITH CERTAIN MATTERS

Consequences of failing to comply with provision of Part 4

58.

(1) If a reinsurance undertaking established in the State has failed, or is failing, to comply with a provision of Part 4, the Bank may, after notifying the supervisory authorities of the Member States in which the commitments underwritten by the undertaking exist, give the undertaking a direction in writing prohibiting or restricting it from disposing of its assets.

(2) If the Bank finds that the solvency margin of an authorised reinsurance undertaking established in the State has fallen below the minimum amount required by Schedule 1, the Bank may give the undertaking a direction in writing requiring the undertaking to submit to the Bank for its authorisation a plan for restoring the undertaking to a sound financial position.

(3) If, in a case where paragraph (2) applies, it appears to the Bank that the financial position of the reinsurance undertaking will deteriorate further, the Bank may give a further direction in writing to the undertaking restricting or prohibiting it from disposing of its assets.

(4) On giving a direction under paragraph (3), the Bank—

(a) shall inform the competent authorities of the Member States in which the undertaking carries on reinsurance business that it has given the direction to the undertaking, and

(b) may ask those authorities to take measures in relation to the undertaking corresponding to those specified in this Regulation.

(5) If the Bank finds that the solvency margin of an authorised reinsurance undertaking established in the State has fallen below the minimum amount required by Schedule 2 for a guarantee fund, the Bank—

(a) may give to the undertaking a further direction in writing requiring the undertaking to submit for the Bank's authorisation a short-term finance scheme, and

(b) may include in the direction, or in another direction, a requirement restricting or prohibiting the undertaking from disposing of its assets.

(6) On giving a direction under paragraph (5), the Bank—

(a) shall inform the competent authorities of the Member States in which the undertaking carries on reinsurance business that it has given the direction to the undertaking, and

(b) may ask those authorities to take measures in relation to the undertaking corresponding to those specified in this Regulation.

(7) If the Bank has given a direction to a reinsurance undertaking in accordance with a provision of paragraphs (1) to (6), the Bank may give the undertaking such further directions as it thinks necessary to safeguard the interests of the undertaking's clients.

(8) If the competent authority of another Member State in which an authorised reinsurance undertaking is established requests the Bank to take measures to restrict or prohibit the undertaking from disposing of assets held by the undertaking in the State, the Bank may give a direction in writing prohibiting or restricting the undertaking from disposing of those assets.

(9) A reinsurance undertaking that fails without reasonable excuse to comply with a direction given under this Regulation commits an offence.

Reinsurance undertaking to provide financial recovery plan if required to do so by the Bank

59.

(1) If the Bank considers that the obligations arising out of the reinsurance contracts entered into by a reinsurance undertaking are being jeopardised, it can, by notice in writing, require the undertaking to provide it with a financial recovery plan to restore the undertaking to a sound financial position.

(2) As soon as practicable after receiving a notice under paragraph (1), the undertaking shall provide the Bank with a financial recovery plan. The plan must cover the 3 financial years of the undertaking following the date of the notice and include particulars or proof of the following:

(a) estimates of the undertaking's management expenses, and in particular its current general expenses and commissions;

(b) detailed estimates of the undertaking's income and expenditure in respect of reinsurance acceptances and reinsurance cession transactions;

(d) estimates of financial resources intended to cover the undertaking's underwriting liabilities and its required solvency margin;

(e) the undertaking's overall policy with respect to retrocessions;

(f) such other matters as the Bank considers appropriate.

(3) If the Bank considers that the obligations arising out of the reinsurance contracts entered into by the undertaking are being jeopardised because its financial position is deteriorating, it may, by notice in writing, require the undertaking to maintain a higher required solvency margin so as to ensure that the undertaking is able to comply with the relevant solvency requirements. The higher required solvency margin must be based on the financial recovery plan.

(4) As soon as practicable after being notified of a requirement under paragraph (3), the undertaking shall comply with the requirement.

(5) The Bank may revalue downwards all elements eligible for the undertaking's available solvency margin, in particular, if the market value of those elements has changed significantly since the end of the undertaking's last financial year.

(6) The Bank may reduce the reduction, based on retrocessions, to the required solvency margin as determined in respect of the undertaking in accordance with these Regulations if—

(a) the nature or quality of the undertaking's retrocessions has changed significantly since its last financial year, and

(b) no risk, or only an insignificant risk transfer, arises under the undertaking's retrocessions.

(7) If the Bank has required a reinsurance undertaking to provide a financial recovery plan in accordance with these Regulations, it may not issue a certificate verifying compliance with the required solvency margin so long as it continues to believe that the obligations arising out of the reinsurance contracts of the undertaking are being jeopardised.

(8) A reinsurance undertaking that fails without reasonable excuse to comply with a requirement imposed by or under this Regulation commits an offence.

Consequences of failure of SPRV to comply with certain provisions

60.

(1) If an authorised SPRV established in the State has failed, or is failing, to comply with a condition of its authorisation or with a rule in force under Regulation 39 the Bank may give the SPRV a direction in writing requiring it, except with the consent of the Bank, not to do any one or more of the following things during such period (not exceeding 12 months) as is specified in the direction:

(a) issue shares or other securities;

(b) pay interest to the holders of securities issued by the SPRV;

(d) make any other payment, or dispose of any of its assets, otherwise than as provided for by the relevant SPRV contract.

(2) If the Bank gives a SPRV a direction under paragraph (1), it shall also give the SPRV a direction requiring it to submit to the Bank for its approval a plan for the SPRV to comply with the conditions of its authorisation or with the rules (if any) in force under Regulation 39.

(3) On giving a direction under paragraph (1), the Bank—

(a) shall inform the competent authorities of the Member States in which the SPRV is operated that it has given the direction to the SPRV, and

(b) may request those authorities to take measures in relation to the SPRV corresponding to those specified in this Regulation.

(4) If the Bank has given a direction under paragraph (1), it may give the SPRV concerned such further directions as it thinks necessary to safeguard the interests of any counterparty to a SPRV contract to which the SPRV is a party.

(5) If the competent authority of another Member State in which an authorised SPRV is established requests the Bank to do so, the Bank may give directions in writing to the SPRV corresponding to those specified in paragraphs (1) and (2).

(6) A SPRV that fails without reasonable excuse to comply with a direction given under this Regulation commits an offence.

(7) A direction given to a SPRV under this Regulation does not affect the accrued rights and obligations (if any) that any party may have under a contract entered into with the SPRV.

PART 13 SPECIAL PROVISIONS WITH RESPECT TO FINITE REINSURANCE CONTRACTS

Powers of Bank with respect to finite reinsurance activities undertaken by reinsurance undertakings and SPRVs

61.

(1) The Bank may from time to time make rules providing for the available solvency margin, the required solvency margin and the guarantee fund that an authorised reinsurance undertaking or SPRV established in the State is required to establish and maintain in respect of its finite reinsurance activities.

(2) An authorised reinsurance undertaking or SPRV established in the State that undertakes finite reinsurance activities shall comply with the rules (if any) in force under paragraph (1).

(3) An authorised reinsurance undertaking or SPRV that, without reasonable excuse, fails to comply with paragraph (2) commits an offence.

Regulation of finite reinsurance contracts

62.

(1) Subject to paragraph (2), a reinsurance undertaking or SPRV may enter into a finite reinsurance contract with a cession undertaking only if the contract—

(a) states that, except for any related contract disclosed in accordance with subparagraph (b), the contract constitutes all of the contractual arrangements between the reinsurance undertaking or SPRV and the cession undertaking, and

(b) if any other contract has been entered into that is related to the principal contract, discloses the related contract, and

(c) states that the cession undertaking undertakes to comply with the notification requirements(if any) imposed by the competent authority of the Member State or third country in which that undertaking is established, and

(d) states that, if the contract has (by reference to the most recent audited financial statements of the cession undertaking) the effect of altering the funds of shareholders of the cession undertaking by more than 5 per cent, or representing a cession of more than 3 per cent of the annual gross written premium or gross incurred losses of that undertaking, that undertaking undertakes, within a reasonable period after the contract is entered into—

(i) to notify in writing its auditor of the terms and conditions of the contract and provide to such auditor an explanation of the financial effect of the contract on that undertaking's capital resources together with the proposed accounting treatment, and

(ii) if the competent authority referred to in subparagraph (c) imposes no disclosure requirements, to notify in writing that authority of the terms and conditions of the contract and provide an explanation of the financial effect of the contract on that undertaking's capital resources, and

(e) provides—

(i) that all amendments to the contract or any related contract require the consent of the reinsurance undertaking or SPRV and the cession undertaking, and

(ii) that the cession undertaking undertakes that it will notify all such amendments to all persons whom it has undertaken to notify in accordance with subparagraphs (c) and (d), and

(f) specifies any other conditions determined by the Bank for the purposes of this subparagraph and notified in writing to the reinsurance undertaking or SPRV.

(2) A finite reinsurance contract entered into on or after 15 July 2006 but before 1 January 2007 is not required to state the matters referred to in paragraph (1)(d).

(3) In making a determination for the purposes of paragraph (1)(f), the Bank shall have regard to the following factors:

(a) the need for all relevant material information to be disclosed;

(b) the need to avoid misinterpretation and to prevent abuse;

(d) the need to preserve the integrity of the market.

(4) A reinsurance undertaking or SPRV that, without reasonable excuse, enters into a finite reinsurance contract in contravention of paragraph (1) commits an offence.

(5) In this Regulation—

“cession undertaking”, in relation to a finite reinsurance contract, means the insurance undertaking making a cession, or the reinsurance undertaking making a retrocession, under the contract;

“related contract” means a contract that alters the commercial effect of a finite reinsurance contract and is entered into between the parties to the finite reinsurance contract, or between those parties and a person with whom either of those parties has a close link

PART 14 RELATIONS INVOLVING REINSURANCE UNDERTAKINGS AND SPRVs ESTABLISHED IN OTHER MEMBER STATES

Competent authority of other Member State empowered to undertake verification of information about reinsurance undertakings and SPRVs established in the State

63.

If an authorised reinsurance undertaking or authorised SPRV established in another Member State carries on business in the State, the competent authority of that other Member State may, after having notified the Bank of its intention to do so, undertake in the State verification of information necessary to ensure that the finances of the undertaking or SPRV are adequately supervised. The Bank is entitled to participate in such a verification.

Bank entitled to take measures to prevent irregularities involving reinsurance undertakings and SPRVs established in other Member States

64.

(1) This Regulation applies—

(a) to an authorised reinsurance undertaking established in another Member State that carries on reinsurance business in the State, and

(b) to an authorised SPRV established in another State that operates in the State.

(2) A reinsurance undertaking or SPRV to which this Regulation applies shall, if required to do so by the Bank, submit to the Bank all documents that the Bank considers necessary for the purposes of giving effect to these Regulations. However, the Bank may only require the undertaking or SPRV to submit documents of a kind that it could require an authorised reinsurance undertaking or authorised SPRV established in the State to submit.

(3) If a reinsurance undertaking or SPRV to which this Regulation applies—

(a) is contravening a provision of these Regulations, or

(b) has contravened such a provision of these Regulations and has not remedied the effect of the contravention, or

the Bank shall, in writing, direct the undertaking or SPRV to cease the contravention, to remedy the effect of the contravention or to comply with the requirement, as the case requires.

(4) If such an undertaking or SPRV fails to comply with a direction given to it under paragraph (3), the Bank shall notify the failure to the competent authority of the Member State in which the undertaking or SPRV is established so that that authority can take all appropriate measures to deal with the undertaking or SPRV under the relevant laws of that Member State.

(5) If, after the Bank has taken action under paragraph (4)—

(a) the measures (if any) taken against the undertaking or SPRV by the competent authority of the other Member State appear to the Bank to be ineffective, and

(b) the undertaking or SPRV is continuing to fail to comply with the direction given to it under paragraph (3),

the Bank may, after informing that authority of its intention to do so, apply to the Court for an order directing the undertaking or SPRV to comply with the direction.

(6) On hearing an application made under paragraph (5), the Court may make—

(a) an order ordering the undertaking or SPRV to comply with the direction concerned, and

(b) if it thinks appropriate, a further order preventing that undertaking from transacting further reinsurance business, or that SPRV from continuing to operate, in the State, and

(7) Nothing in this Regulation affects any other power of the Bank that enables it—

(a) to take action against a reinsurance undertaking or SPRV that contravenes or fails to comply with a provision of, or a direction or requirement made under, these Regulations, or

(b) to take steps to prevent the undertaking or SPRV from continuing to enter into new reinsurance contracts.

(8) If the Court makes an order against a reinsurance undertaking or SPRV under paragraph (6) and the undertaking or SPRV is not a party to the proceedings in which the order was made, the Bank shall, by notice in writing, inform the undertaking or SPRV of the order.

(9) If the Bank takes any measure under this Regulation in respect of a reinsurance undertaking or SPRV, it shall, by notice in writing, inform the undertaking or SPRV of that measure. The notice must be supported by the precise grounds for taking the measure.

Competent authority of other Member State entitled to request Bank to respond appropriately against reinsurance undertakings and SPRVs established in the State

65.

(1) If—

(a) an authorised reinsurance undertaking established in the State carries on reinsurance business, or an authorised SPRV established in the State operates, in another Member State, and

(b) the competent authority of that other Member State requests the Bank to take appropriate measures to require the undertaking or SPRV to comply with, or to cease contravening, a specified law of that other Member State that corresponds to these Regulations, or to comply with a direction or requirement made by that authority under such a law,

the Bank may apply to the Court for an order under paragraph (2).

(2) On hearing an application made under paragraph (1), the Court may make an order requiring the undertaking or SPRV to comply with, or to cease contravening, the law to which the application relates, or to comply with a direction or requirement made under that law.

(3) As soon as practicable after receiving a request from the competent authority as referred to in paragraph (1)(b), the Bank shall inform that authority of the action (if any) that it has taken in consequence of the request.

(4) Nothing in this Regulation prevents the Bank, as an alternative to making an application under paragraph (1), from exercising any other enforcement powers conferred on it by these Regulations, the Central Bank Act 1942 or any other law.

PART 15 RELATIONS INVOLVING THIRD COUNTRIES

Treatment of reinsurance undertakings established in third countries

66.

(1) If a third country reinsurance undertaking commences or carries on reinsurance business in the State, the Bank shall not impose requirements or conditions under these Regulations, either on the third country undertaking or on any other reinsurance undertakings, that would result in the third country undertaking being treated more favourably than an authorised reinsurance undertaking established in the State or in another Member State would be treated.

(2) In paragraph (1), “third country reinsurance undertaking” means a reinsurance undertaking that has its head office in a third country.

Bank to ensure obligations of European Communities under international agreements are complied with

67.

The Bank shall ensure that action taken under these Regulations accords with the obligations of the European Communities under every international agreement (whether bilateral or multilateral) that governs the conduct of reinsurance business or reinsurance undertakings.

Bank may enter into agreement with responsible authority of third country

68.

(1) The Bank may enter into an agreement with the responsible authority of a third country with a view to defining the means of supervision over reinsurance undertakings that carry on reinsurance business both in the State and in that country.

(2) In this Regulation, “responsible authority”, in relation to a third country means the authority established in that country to supervise or regulate the conduct of those who carry on insurance or reinsurance business in that country.

Bank to notify European Commission of authorisations and acquisitions of reinsurance undertakings governed by laws of third country

69.

(1) The Bank shall give written notice to the European Commission and the competent authorities of the other Member States—

(a) whenever it grants an authorisation to a subsidiary of one or more parent undertakings that are governed by the laws of a third country, and

(b) whenever such a parent undertaking acquires a holding in a reinsurance undertaking authorised by the Bank with the result that the latter undertaking becomes a subsidiary of the parent undertaking.

(2) On granting an authorisation to the subsidiary of one or more parent undertakings governed by the law of a third country, the Bank shall specify the structure of the group in the notice to be given under paragraph (1).

Minister to notify European Commission of difficulties encountered by reinsurance undertakings in establishing or carrying on business in third country

70.

(1) As soon as practicable after becoming aware that an authorised reinsurance undertaking established in the State is encountering difficulties in establishing itself, or to carrying on reinsurance business, in a third country, the Bank shall notify those difficulties to the Minister.

(2) The Minister shall, without delay, inform the European Commission of any difficulties notified in accordance with paragraph (1).

PART 16 ENFORCEMENT OF REGULATIONS

Enforcement powers of the Bank

71.

The Bank may exercise all or any of the following powers in relation to an authorised reinsurance undertaking or SPRV:

(a) require the undertaking or SPRV to provide the Bank with information or documents (or both) concerning the business of the undertaking or SPRV;

(b) take such steps as it considers necessary to ensure that the undertaking or SPRV, and the officers of the undertaking or SPRV, comply with these Regulations and any rules or requirements made under them;

Appointment of authorised officers

72.

(1) The Bank may, in writing, appoint employees of the Bank or other suitably qualified persons to be authorised officers for the purpose of securing compliance with these Regulations or with any specified provisions of these Regulations.

(2) The Bank may, in writing, revoke the appointment of an authorised officer whenever it considers it appropriate to do so.

Powers of authorised officers

73.

(1) Subject to Regulation 74, an authorised officer may, at all reasonable times on production of evidence of the officer's appointment, enter any premises at which the officer reasonably believes that a reinsurance business is being carried on or a SPRV is being operated.

(2) An authorised officer who has entered premises in accordance with paragraph (1) may exercise all or any of the following powers:

(a) inspect the premises;

(b) require any person on the premises who apparently has control of, or access to, records that relate to a reinsurance business or the operation of a SPRV to produce the records for inspection or to search the premises for any such records;

(d) take copies of those records or of any part of them;

(e) if those records are kept electronically, require them to be reproduced in hard copy, or copied on to computer diskette or reduced to some other portable form suitable for removal and capable of reproducing the record for viewing;

(f) secure for later inspection any part of the premises in which the authorised officer reasonably believes that any such records are kept;

(g) require any person who appears to the authorised officer to have information relating to the records, or to the reinsurance business or operation of the SPRV, to answer questions with respect to the records or that business or operation;

(h) require any such person to give to the authorised officer any other information that the authorised officer reasonably requires with respect to the reinsurance business or the operation of the SPRV;

(i) require any person apparently employed on the premises to prepare a report on any specified aspect of the reinsurance business or the operation of the SPRV, or to explain entries in any records produced or found as result of an inspection of the premises.

(3) A person to whom a requirement is made in accordance with paragraph (2 shall—

(a) comply with the requirement in so far as it is possible to do so, and

(b) provide such other assistance and information to the authorised officer with respect to the reinsurance business, or the operation of the SPRV as is reasonable in the circumstances.

(4) The powers conferred by paragraph (2) may also be exercised in relation to any other person who, in the opinion of the Bank or an authorised officer, has information that is materially relevant to the exercise of those powers in relation to the reinsurance business or the operation of the SPRV.

(5) The production of a record in compliance with a requirement made under this Regulation or Regulation 71 does not prejudice a person's lien over the record.

(6) Nothing in this Regulation requires a legal practitioner to produce a record that contains a privileged communication made by or to the practitioner or to disclose any information that relates to the communication.

(7) In this Regulation—

“legal practitioner” means a barrister, solicitor or other person authorised by or under a law of the State to undertake legal work in the State;

“suitably qualified person” means any person (other than an employee of the Bank who, in the opinion of the Bank, has the qualifications and experience necessary to exercise the powers conferred on authorised officers by this Regulation.

Warrant required to enter private dwelling

74.

(1) If premises or a part of premises sought to be entered under Regulation 73 are a private dwelling, the authorised officer concerned may enter the premises or part only—

(a) with the consent of the occupier, or

(b) in accordance with a warrant issued by a judge of the District Court under paragraph (2).

(2) If a judge of the District Court is satisfied on the sworn information of an authorised officer that there are reasonable grounds for suspecting that information required by that or another authorised officer under Regulation 73 is held on premises, or a part of premises, that are a private dwelling, the judge may issue a warrant authorising an authorised officer, at any time or times within 1 month after the date of issue of the warrant, on production of the warrant if so requested, to enter the premises, if necessary by reasonable force, and to exercise all or any of the powers conferred on an authorised officer under paragraph (3).

(3) At any time within 1 month after the issue of a warrant under paragraph (2) the authorised officer named in the warrant may, on production of the warrant if so requested—

(a) enter the premises specified in the warrant, using such force as is reasonably necessary, and

(b) exercise all or any of the powers conferred on authorised officers by Regulation 73.

That officer is entitled to be accompanied by other authorised officers or by members of the Garda Síochána, or both.

Offence to obstruct authorised officers

75.

(1) A person who—

(a) obstructs an authorised officer in the exercise of a power conferred on authorised officers by these Regulations, or

(b) without reasonable excuse, fails to comply with a requirement made by an authorised officer under these Regulations, or

(c) in purported compliance with such a requirement, provides information that the person knows to be false or misleading,

commits an offence.

(2) A person is not guilty of an offence of failing to comply with such a requirement unless, when the requirement was made, the person was warned that a failure to comply is an offence.

(3) A person is not excused from complying with a requirement under Regulation 73 to provide information or records, or to answer a question, on the ground that the information, record or answer might incriminate the person or make the person liable to a penalty.

(4) However, any information or answer provided by a natural person in compliance with such a requirement is not admissible in evidence against the person in criminal proceedings (except proceedings for an offence under this Regulation) if—

(a) the person objected at the time of giving it to doing so on the ground that it might be incriminating, or

(b) the person was not warned on that occasion that the person had a right to object to giving the information or answer on the ground that it might be incriminating.

(5) Any record provided by a person in compliance with a requirement made under Regulation 73 is not inadmissible in evidence against the person in criminal proceedings on the ground that the record might incriminate the person.

(6) Further information obtained as a result of information or a record or an answer provided in compliance with a requirement made under Regulation 73 is not inadmissible on the ground—

(a) that the information, record or answer had to be provided, or

(b) that the information, record or answer provided might incriminate the person.

Offence to provide false or misleading information in purported compliance with direction or requirement under these Regulations

76.

(1) A person who, knowing the information to be false or misleading, provides the Bank or the co-ordinator of a financial conglomerate with information in purported compliance with a direction or requirement notified to the person by the Bank or by that co-ordinator in accordance with these Regulations commits an offence.

(2) In this Regulation, “financial conglomerate” has the same meaning as in the European Communities (Financial Conglomerates) Regulations 2004 ( S.I. No. 727 of 2004 ).

Liability of officers of undertaking for offences committed by the undertaking

77.

(1) If an undertaking commits an offence against these Regulations and the offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, an officer of the undertaking, the officer commits a separate offence and is liable to be proceeded against and punished as if the officer had been found guilty of the first-mentioned offence.

(2) A person may be proceeded against and convicted of an offence under paragraph (1) whether or not the undertaking concerned has been proceeded against or been convicted of the offence first mentioned in that paragraph.

(3) Nothing in this section affects any liability imposed on a body corporate for an offence committed by the body under these Regulations.

(4) Without limiting any other law or practice regarding the admissibility of evidence, evidence that a person who is an officer of a body corporate, while acting in the person's capacity as such, had, at a relevant time, a particular intention is evidence that the body had that intention.

(5) In this Regulation, “undertaking” includes a SPRV.

Penalties for offences under these Regulations

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