Central Bank Reform Act 2010

PART 1 Preliminary

1. Short title and collective citation.

1.— (1) This Act may be cited as the Central Bank Reform Act 2010.

(2) The Central Bank and Financial Services Authority of Ireland Acts 1942 to 2009 and this Act may be cited together as the Central Bank Acts 1942 to 2010.

2. Commencement.

2.— (1) This Act comes into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to a particular purpose or provision. Different days may be so appointed for different purposes or different provisions.

(2) An order under subsection (1) may, in relation to the amendments of Acts and statutory instruments set out in Schedules 1 to 3, appoint different days for the amendment of different Acts or statutory instruments or different provisions of them.

3. Interpretation.

3.— (1) In this Act—

“Act of 1942” means the Central Bank Act 1942;

F1["authorised officer" means an authorised officer appointed under Part 3 of the Central Bank (Supervision and Enforcement) Act 2013;]

“cessation date” means the last day on which section 33B of the Act of 1942 is in operation.

F2["financial services legislation" means—

(a) the designated enactments,

(b) the designated statutory instruments, and

(c) theCentral Bank Acts 1942 toF3[2013]and statutory instruments made under those Acts;]

(2) An expression used in this Act and also in the Act of 1942 has, unless the contrary intention appears, the same meaning in this Act as in the Act of 1942.

PART 2 Reform of the Central Bank of Ireland — transitional and saving provisions

4. Transitional arrangements in relation to certain office-holders.

4.— (1) The person who held, on the cessation date, the office of Chief Executive of the Regulatory Authority (within the meaning then given by the Act of 1942) shall be taken, on the following day, to be appointed as Head of Financial Regulation.

(2) Subject to subsection (5), the person referred to in subsection (1) holds the office of Head of Financial Regulation until the time at which his or her appointment as Chief Executive of the Regulatory Authority would have expired.

(3) The person who held, on the cessation date, the office of Director General of the Bank shall be taken, on the following day, to be appointed as Head of Central Banking.

(4) Subject to subsection (5), the person referred to in subsection (3) holds the office of Head of Central Banking until the time at which his or her appointment as Director General of the Bank would have expired.

(5) A person referred to in subsection (1) or (3) may be removed from office for the same reasons, and in the same way, as a person appointed to hold office as a Head of Function under section 23B of the Act of 1942.

(6) This section has effect notwithstanding sections 23B(2) and 23C(2) of the Act of 1942.

5. Preservation of rights of employees.

5.— Other than the holder of a statutory office that ceases to exist because of amendments to the Act of 1942 by this Act, nothing in this Act affects the terms and conditions of the employment of any officer or employee of the Bank.

6. Arrangements for secondment of certain employees.

6.— (1) In this section—

“secondee” means an employee seconded from the Bank to the Agency under arrangements referred to in subsection (2).

(2) The Bank and the Agency may make arrangements for the secondment of employees of the Bank to the Agency for the purposes of any function transferred from the Bank to the Agency pursuant to amendments to the Act of 1942 by this Act.

(3) A secondee may elect to become an employee of the Agency at any time until 29 February 2012.

(4) A secondee who does not make an election under subsection (3) continues to be an employee of the Bank until 29 February 2012. His or her terms of employment (including any term conferring a right to an increase in remuneration) continue to be those applicable to his or her employment by the Bank.

(5) On 1 March 2012, a secondee who has not made an election under subsection (3) shall be taken to have elected to continue to be an employee of the Bank.

(6) An election under subsection (3) to become an employee of the Agency has effect if and only if the chief executive officer of the Agency, the Minister for Finance and the Minister for Enterprise, Trade and Innovation all consent. If all of them so consent, the election has effect immediately after the latest of those consents is given. Until that time the employee concerned continues to be an employee of the Bank.

(7) If a secondee elects to become an employee of the Agency, the terms of employment by the Agency at the time the election has effect shall not be less favourable than the terms at that time of his or her employment by the Bank (subject to any provision in any enactment).

(8) If a person’s employment is transferred under this section, the person’s previous service with the Bank is to be counted as service for the purposes of the following Acts:

(a) the Redundancy Payments Acts 1967 to 2007;

(b) the Protection of Employees (Part-Time Work) Act 2001;

(c) the Protection of Employees (Fixed-Term Work) Act 2003;

(d) the Organisation of Working Time Act 1997;

(e) the Terms of Employment (Information) Acts 1994 and 2001;

(f) the Minimum Notice and Terms of Employment Acts 1973 to 2005;

(g) the Unfair Dismissals Acts 1977 to 2007;

(h) the Maternity Protection Acts 1994 and 2004;

(i) the Parental Leave Acts 1998 and 2006;

(j) the Adoptive Leave Acts 1995 and 2005;

(k) the Carer’s Leave Act 2001.

7. Saving of certain regulations, rules, codes, etc.

7.— (1) Any instrument (whether described as a rule, regulation, order or code of practice or in any other way, and whether or not a statutory instrument to which the Statutory Instruments Act 1947 primarily applies) made or issued by or on behalf of the Regulatory Authority or the Consumer Director and in force on the cessation date has, after that date, the same force and effect as it had on that date.

(2) An instrument referred to in subsection (1) may be revoked or amended by the Bank as if made by the Bank.

8. Saving of certain schemes.

8.— (1) The repeal of section 33 of the Act of 1942 by this Act does not affect the operation of any scheme made by the Bank or the Governor under that section and still in operation, or any rights of any person under such a scheme.

(2) A scheme referred to in subsection (1) may be amended by the Bank as if section 33 of the Act of 1942 had not been repealed.

9. Applications, etc., made to Regulatory Authority.

9.— (1) An application for a licence, authorisation or permission (however described) made to the Regulatory Authority on or before the cessation date has, after that date, the effect that it would have if made to the Bank.

(2) Nothing in subsection (1) is taken to alter the date on which an application referred to in that subsection was made.

10. Information in possession of Regulatory Authority.

10.— (1) On the day after the cessation date, the records of the Regulatory Authority and information that was, on the cessation date, in the possession of the Regulatory Authority come into the possession of the Bank.

(2) The Bank has the same rights, powers, duties and obligations in relation to records and information referred to in subsection (1) as the Regulatory Authority had on the cessation date.

(3) In particular, without prejudice to the generality of subsection (2), the Bank—

(a) may have regard, in carrying out its regulatory functions under the Act of 1942 as amended by this Act, to any record or information referred to in subsection (1),

(b) specifically, may have regard to any such record or information for the purpose of deciding whether a person may have committed an offence (whether against the Central Bank Acts 1942 to 2010 or any other law), and

(c) has the same powers and obligations to deal with such records and information (including that of disclosing such information to another authority in accordance with section 33AK of the Act of 1942) as the Regulatory Authority had on the cessation date.

11. Regulatory action taken by Regulatory Authority.

11.— (1) A regulatory action taken by the Regulatory Authority on or before the cessation date, and not already spent, continues to have effect according to its terms. The Bank may enforce such a regulatory action.

(2) In subsection (1) “regulatory action” includes any direction, order, requirement, sanction, condition, appointment or request (however described) of a regulatory nature made, given or imposed by the Regulatory Authority.

12. Inquiries, etc., undertaken by Regulatory Authority.

12.— (1) An inquiry undertaken by the Regulatory Authority under Chapters 2 and 3 of Part IIIC of the Act of 1942 on or before the cessation date, and not already completed, may be continued by the Bank. The Bank may take regulatory action on the basis of such an inquiry.

(2) An assessor appointed by the Regulatory Authority on or before the cessation date under—

(a) Part 5 of the Market Abuse (Directive 2003/6/EC) Regulations 2005,

(b) Part 5 of the Prospectus (Directive 2003/71/EC) Regulations 2005, or

(c) Part 10 of the Transparency (Directive 2004/109/EC) Regulations 2007,

may continue, if the assessment for which he or she was appointed is not completed at that date, to carry out that assessment. The Bank may take regulatory action on the basis of such an assessment.

(3) In subsections (1) and (2) “regulatory action” includes any direction, order, requirement, sanction, condition, appointment or request (however described) of a regulatory nature that the Bank may make, give or impose.

13. Legal proceedings to which Regulatory Authority is party.

13.— (1) If on the cessation date the Regulatory Authority is a party to any legal proceedings, then the Bank is taken, immediately after that date, to be substituted for the Regulatory Authority as such a party.

(2) Nothing in subsection (1) makes available against the Bank any right (including, in particular, any right to seek discovery of documents) that was not or is no longer available against the Regulatory Authority.

(3) An order by a court or the Appeal Tribunal against the Regulatory Authority has effect, after the cessation date, as an order against the Bank.

(4) In this section “legal proceedings” includes—

(a) an appeal to the Appeal Tribunal, and

(b) a prosecution where the Regulatory Authority is prosecutor.

14. Amendments of Central Bank Acts.

14.— (1) The Act of 1942 is amended as set out in Part 1 of Schedule 1.

(2) Parts IIIC, VIIA and VIIB of the Act of 1942 are further amended as follows:

(a) by deleting “Regulatory Authority” and substituting “Bank” in each place where it occurs;

(b) by deleting “that Authority” and substituting “the Bank” in each place where it occurs.

(3) The provisions of the Act of 1942 set out in Part 2 of Schedule 1 are repealed.

(4) The Central Bank Act 1971 is amended as set out in Part 3 of Schedule 1.

(5) The Central Bank Act 1989 is amended as set out in Part 4 of Schedule 1.

(6) The Central Bank Act 1997 is amended as set out in Part 5 of Schedule 1.

(7) The Central Bank Act 1998 is amended as set out in Part 6 of Schedule 1.

15. Amendments of other Acts.

15.— (1) The Anglo Irish Bank Corporation Act 2009 is amended as set out in Part 1 of Schedule 2.

(2) The Companies (Auditing and Accounting) Act 2003 is amended as set out in Part 2 of Schedule 2.

(3) The Company Law Enforcement Act 2001 is amended as set out in Part 3 of Schedule 2.

(4) The Consumer Credit Act 1995 is amended as set out in Part 4 of Schedule 2.

(5) The Consumer Protection Act 2007 is amended as set out in Part 5 of Schedule 2.

(6) The Credit Institutions (Financial Support) Act 2008 is amended as set out in Part 6 of Schedule 2.

(7) The Credit Union Act 1997 is amended as set out in Part 7 of Schedule 2.

(8) The Disability Act 2005 is amended as set out in Part 8 of Schedule 2.

(9) The Health (Repayment Scheme) Act 2006 is amended as set out in Part 9 of Schedule 2.

(10) The Insurance Act 1989 is amended as set out in Part 10 of Schedule 2.

(11) The National Asset Management Agency Act 2009 is amended as set out in Part 11 of Schedule 2.

(12) The Official Languages Act 2003 is amended as set out in Part 12 of Schedule 2.

(13) The Personal Injuries Assessment Board Act 2003 is amended as set out in Part 13 of Schedule 2.

(14) Each enactment specified in Part 14 of Schedule 2 is amended by deleting “Central Bank and Financial Services Authority of Ireland” and substituting “Central Bank of Ireland”.

16. Amendments of statutory instruments.

16.— (1) The Ethics in Public Office (Prescribed Public Bodies, Designated Directorships of Public Bodies and Designated Positions in Public Bodies) Regulations 2004 (S.I. No. 699 of 2004) are amended as set out in Part 1 of Schedule 3.

(2) The European Communities (Consumer Credit Agreements) Regulations 2010 (S.I. No. 281 of 2010) are amended as set out in Part 2 of Schedule 3.

(3) The European Communities (Cooperation between National Authorities Responsible for the Enforcement of Consumer Protection Laws) Regulations 2006 (S.I. No. 290 of 2006) are amended as set out in Part 3 of Schedule 3.

(4) The European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003 (S.I. No. 211 of 2003) are amended as set out in Part 4 of Schedule 3.

(5) The Market Abuse (Directive 2003/6/EC) Regulations 2005 (S.I. No. 342 of 2005) are amended as set out in Part 5 of Schedule 3.

(6) The Prospectus (Directive 2003/71/EC) Regulations 2005 (S.I. No. 324 of 2005) are amended as set out in Part 6 of Schedule 3.

(7) The Transparency (Directive 2004/109/EC) Regulations 2007 (S.I. No. 277 of 2007) are amended as set out in Part 7 of Schedule 3.

(8) If a provision of an Order made pursuant to section 4 of the Financial Transfers Act 1992 provides that the Central Bank and Financial Services Authority of Ireland may give directions or issue instructions for any purpose, the provision is amended by deleting “Central Bank and Financial Services Authority of Ireland” and substituting “Central Bank of Ireland”.

(9) If a provision of Regulations made pursuant to section 3 of the European Communities Act 1972 (being Regulations made for the purpose of a Regulation of the European Commission or the Council of the European Union imposing financial sanctions) provides that the Central Bank and Financial Services Authority of Ireland may give directions or issue instructions for any purpose, the provision is amended by deleting “Central Bank and Financial Services Authority of Ireland” and substituting “Central Bank of Ireland”.

(10) If a provision of Regulations made pursuant to section 42(6) of the Criminal Justice (Terrorist Offences) Act 2005 provides that the Central Bank and Financial Services Authority of Ireland may give directions or issue instructions for any purpose, the provision is amended by deleting “Central Bank and Financial Services Authority of Ireland” and substituting “Central Bank of Ireland”.

(11) Each provision of a statutory instrument specified in Part 8 of Schedule 3 is amended by deleting “Central Bank and Financial Services Authority of Ireland” and substituting “Central Bank of Ireland” in each place where it occurs.

(12) The amendment of a statutory instrument by this section does not prevent or restrict the subsequent amendment or revocation of the instrument by another statutory instrument.

17. Construction of certain references.

17.— (1) After the cessation date, a reference in an enactment or a provision of a statutory instrument to the Board of the Central Bank and Financial Services Authority of Ireland shall be construed as a reference to the Commission.

(2) After the cessation date, a reference in an enactment or a provision of a statutory instrument to a member of the Board of the Central Bank and Financial Services Authority of Ireland shall be construed as a reference to a member of the Commission.

(3) After the cessation date, a reference in an enactment or a provision of a statutory instrument to the Chief Executive of the Irish Financial Services Regulatory Authority shall be construed as a reference to the Head of Financial Regulation.

(4) After the cessation date, any other reference in an enactment or a provision of a statutory instrument to the Central Bank and Financial Services Authority of Ireland shall be construed as a reference to the Bank.

(5) After the cessation date, any other reference in an enactment or a provision of a statutory instrument to the Irish Financial Services Regulatory Authority (as “the Regulatory Authority” or in any other way) shall be construed as a reference to the Bank.

PART 2A Powers of Bank in relation to financial service providers

17A. Business standards

17A.—(1) A regulated financial service provider shall comply with any standards prescribed by the Bank undersubsection (2)(in this section referred to as the "business standards").

(2) The Bank may make regulations prescribing standards for the purpose of ensuring that in the conduct of its affairs a regulated financial service provider—

(a) acts in the best interests of customers and of the integrity of the market,

(b) acts honestly, fairly and professionally, and

(c) acts with due skill, care and diligence.

(3) The business standards shall, in particular, include standards requiring that in the conduct of its affairs the regulated financial service provider—