Central Bank Reform Act 2010

AN ACT TO ESTABLISH THE CENTRAL BANK OF IRELAND AS A SINGLE FULLY-INTEGRATED STRUCTURE WITH A UNITARY BOARD — THE CENTRAL BANK COMMISSION — REPLACING THE BOARDS OF THE CENTRAL BANK AND IRISH FINANCIAL SERVICES REGULATORY AUTHORITY; TO ENHANCE THE SYSTEM OF REGULATORY CONTROL AND TO CONFER ADDITIONAL POWERS ON THE CENTRAL BANK, THE GOVERNOR AND THE HEAD OF FINANCIAL REGULATION TO PREVENT POTENTIAL SERIOUS DAMAGE TO THE FINANCIAL SYSTEM IN THE STATE, SUPPORT THE STABILITY OF THAT SYSTEM AND TO PROTECT USERS OF FINANCIAL SERVICES; TO TRANSFER CERTAIN FUNCTIONS OF THE CENTRAL BANK TO THE NATIONAL CONSUMER AGENCY; TO AMEND THE ENACTMENTS RELATING TO THE CENTRAL BANK AND CERTAIN OTHER ACTS CONSEQUENTIAL ON THAT REORGANISATION; TO AMEND THE LAW RELATING TO THE REGULATION OF LENDING BY CREDIT UNIONS; TO EXTEND THE RANGE OF PERSONS WHO CAN BE AUTHORISED TO INVESTIGATE THE AFFAIRS OF AN INSURER; AND TO PROVIDE FOR RELATED MATTERS.

[17th July, 2010]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

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) the Central Bank Acts 1942 to F3[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 under subsection (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—

• (a) does not mislead a customer as to the advantages or disadvantages of any financial service,

• (b) maintains adequate financial resources,

• (c) controls and manages its affairs and systems (including risk management systems, internal control mechanisms and governance arrangements) sustainably, responsibly, and in a sound and prudent manner,

• (d) prevents, or identifies and appropriately manages, conflicts of interest,

• (e) arranges adequate protection for assets held by the regulated financial service provider on behalf of a customer,

• (f) engages and cooperates in good faith and without delay with the Bank, and with authorities that perform functions in a jurisdiction other than the State that are comparable to one or more of the functions performed by the Bank under financial services legislation, and

• (g) discloses to the Bank promptly, and in a manner appropriate to the circumstances, any matter relating to the regulated financial service provider of which the Bank would reasonably expect notice.

• (4) The Bank may prescribe in regulations under this section the systems and controls, processes, policies and procedures that regulated financial service providers are to adopt for the purpose of ensuring that they comply with the business standards.

• (5) Before making regulations under this section, the Bank—

• (a) shall consult with the Minister, and

• (b) may consult with such other persons as the Bank considers appropriate in the circumstances.

• (6) When making regulations under this section, the Bank shall have regard to the need to ensure that the business standards are effective and proportionate having regard to the nature, scale and complexity of the activities of regulated financial service providers or the class or classes of regulated financial service providers to whom the regulations apply.

• F5[(6A)
• (a) Before making regulations under this section, the Bank shall carry out an assessment of the costs and benefits of the business standards it proposes to prescribe.

• (b) An assessment referred to in paragraph (a) shall include an assessment of the potential impacts of the proposed regulations on customers and fair competition in the financial markets in the State.

• (c) The Bank shall, not later than the date of the making of any regulations under this section, publish any assessment carried out under paragraph (a) on a website maintained by it or on its behalf.]

• (7) Regulations made under this section may—

• (a) apply either generally or to a specified class or classes of regulated financial service providers, customers or financial services, and

• (b) include different provisions in relation to different classes of regulated financial service providers, customers or financial services.

• (8) The Bank shall give to the Minister a copy of any regulations made by it under this section as soon as practicable after the regulations are made.

• (9) Sections 61C and 61D of the Act of 1942 apply to regulations made under this section.]

PART 3 Powers of Bank in relation to officers, etc., of financial service providers

Chapter 1 Preliminary

18. Definitions (Part 3).

18.— (1) In this Part—

“Court” means the High Court;

F6["ECB" means the European Central Bank;]

“evidentiary notice” means a notice under section 32;

F7[“controlled function”—

• (a) in relation to a regulated financial service provider, means a function prescribed in regulations made under section 20 as a controlled function in relation to a regulated financial service provider, and

• (b) in relation to a holding company, means a function prescribed in regulations made under section 20 as a controlled function in relation to a holding company;]

F8["holding company" means any of the following established in the State:

• (a) a financial holding company, within the meaning given by point (20) of Article 4(1) of the Capital Requirements Regulation;

• (b) a mixed financial holding company, within the meaning given by point (21) of Article 4(1) of the Capital Requirements Regulation;

• (c) an insurance holding company, within the meaning given by Regulation 215(1) of the European Union (Insurance and Reinsurance) Regulations 2015 (S.I. No. 485 of 2015);

• (d) an investment holding company, within the meaning of the European Union (Investment Firms) Regulations 2021 (S.I. No. 355 of 2021);

"prohibition notice" means a notice under section 43;]

F7[“pre-approval controlled function”—

• (a) in relation to a regulated financial service provider, shall be construed in accordance with section 22(1), and

• (b) in relation to a holding company, shall be construed in accordance with section 22(1A);]

F6["SSM Regulation" means Council Regulation (EU) No. 1024/2013 of 15 October 2013¹³ conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions;]

F6["SSM Framework Regulation" means Regulation (EU) No. 468/2014 of the European Central Bank of 16 April 2014¹⁴ establishing the framework for co-operation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities;]

“suspension notice” means a notice under section 26.

• (2) F9[…]

• (3) F9[…]

Chapter 2 Controlled functions

19. Definition (Chapter 2).

F10[19.— In this Chapter, "relevant obligations", in relation to a regulated financial service provider or holding company, means the obligations of the regulated financial service provider or holding company under—

• (a) all designated enactments and all designated statutory instruments that apply to it,

• (b) all codes, guidelines and notices issued by the Bank that apply to it, and

• (c) all other enactments and statutory instruments with which it must comply.]

20. Controlled functions.

20.— (1) The Bank may make regulations prescribing functions that are to be controlled functions F11[in relation to regulated financial service providers or in relation to holding companies].

• (2) The Bank may prescribe a function under subsection (1) F11[to be a controlled function in relation to a regulated financial service provider] if and only if the function is a function in relation to the provision of a financial service and—

• (a) is likely to enable the person responsible for its performance to exercise a significant influence on the conduct of the affairs of a regulated financial service provider,

• (b) is related to ensuring, controlling or monitoring compliance by a regulated financial service provider with its relevant obligations, or

• (c) is likely to involve the person responsible for its performance in the provision of a financial service by a regulated financial service provider in one or more of the following ways:

• (i) the giving of advice or assistance to a customer of the regulated financial service provider in the course of providing, or in relation to the provision of, the financial service;

• (ii) dealing in or having control over property of a customer of the regulated financial service provider to whom a financial service is provided or to be provided, whether that property is held in the name of the customer or some other person;

• (iii) dealing in or with property on behalf of the regulated financial service provider, or providing instructions or directions in relation to such dealing.

• F11[(2A) The Bank may prescribe a function under subsection (1) to be a controlled function in relation to a holding company if and only if the function—

• (a) is likely to enable the person responsible for its performance to exercise a significant influence on the conduct of the affairs of the holding company, or

• (b) is related to ensuring, controlling or monitoring compliance by the holding company with its relevant obligations.]

• (3) F12[A function that is prescribed under subsection (1) as a controlled function in relation to a regulated financial service provider and] is carried on by a person who, or a partnership or an entity that, is not a regulated financial service provider remains a controlled function.

• (4) F12[A function that is prescribed under subsection (1) as a controlled function in relation to a regulated financial service provider or in relation to a holding company] remains a controlled function even if—

• (a) it is carried on at an office or location outside the State,

• (b) it is carried on at the office or location of another person, whether or not the other person is a regulated financial service provider, F11[or holding company] or

• F12[(c) it relates to affairs of a regulated financial service provider or holding company established in the State conducted by the regulated financial service provider or holding company outside the State.]

• (5) A function may be prescribed as a controlled function in relation to a specified class or classes of regulated financial service providers F11[or holding companies] or in relation to regulated financial service providers F11[or holding companies] generally.

• (6) The Bank shall give to the Minister a copy of any regulations made by it under this section as soon as practicable after the regulations are made and the Minister shall, as soon as may be, cause a copy of the regulations to be laid before each House of the Oireachtas.

21. Application of standards of fitness and probity.

F13[21.—(1) A regulated financial service provider shall not permit a person to perform a controlled function in relation to it unless a certificate of compliance with standards of fitness and probity, given by the regulated financial service provider in accordance with this section, is in force in relation to the person.

• (2) A holding company shall not permit a person to perform a controlled function in relation to it unless a certificate of compliance with standards of fitness and probity, given by the holding company in accordance with this section, is in force in relation to the person.

• (3) A certificate may be given for the purposes of subsection (1) or (2) only if—

• (a) the regulated financial service provider or holding company giving the certificate is satisfied on reasonable grounds that the person concerned complies with any standard of fitness and probity in a code issued under section 50, and

• (b) the person has agreed in writing to comply with any such standard.

• (4) A regulated financial service provider or holding company that has given a certificate for the purposes of subsection (1) or (2) shall revoke the certificate if it ceases to be satisfied on reasonable grounds that the person concerned complies with any standard of fitness and probity referred to in subsection (3).

• (5) The Bank may take into account standards of fitness and probity referred to in subsection (3) when performing its functions and exercising its powers.

• (6) The Bank may make regulations—

• (a) as to the giving of certificates for the purposes of subsections (1) and (2), and

• (b) as to the making of reports to the Bank by regulated financial service providers or holding companies in connection with their obligations under this section (including, in particular, reports on disciplinary action relevant to compliance with standards of fitness and probity).

• (7) Without prejudice to the generality of subsection (6)(a), regulations under subsection (6) may make provision as to—

• (a) the form and content of a certificate,

• (b) the period of validity of a certificate,

• (c) procedures, systems and checks to be adopted by regulated financial service providers or holding companies for the purposes of subsections (3)(a) and (4) or otherwise in connection with the giving or revoking of a certificate, and

• (d) the form and content of the agreement required by subsection (3)(b).

• (8) The Bank shall give to the Minister a copy of any regulations made by it under subsection (6) as soon as practicable after the regulations are made.]

22. Pre-approval controlled functions.

22.— (1) A function is a pre-approval controlled function F14[in relation to a regulated financial service provider] if—

• (a) it is prescribed as such in regulations made pursuant to subsection (2), or

• (b) it has been declared by the Bank to be a pre-approval controlled function by written notice pursuant to subsection (8).

• F14[(1A) A function is a pre-approval controlled function in relation to a holding company if it is prescribed as such in regulations made pursuant to subsection (2A).]

• F15[(2) The Bank may by regulations prescribe a function that is a controlled function in relation to a regulated financial service provider as a pre‑approval controlled function in relation to a regulated financial service provider, if the function is one by which a person may exercise a significant influence on the conduct of a regulated financial service provider’s affairs.]

• F14[(2A) The Bank may by regulations prescribe a function that is a controlled function in relation to a holding company as a pre-approval controlled function in relation to a holding company, if the function is one by which a person may exercise a significant influence on the conduct of a holding company’s affairs.

• (2B) In prescribing a function as a pre-approval controlled function pursuant to subsection (2) or (2A), the Bank may describe or identify the function by reference to a title commonly used for a person who performs the function.]

• F15[(3) Without prejudice to the generality of subsections (2) and (2A), the Bank may prescribe a controlled function as a pre-approval controlled function in relation to a regulated financial service provider, pursuant to subsection (2), or in relation to a holding company, pursuant to subsection (2A), if—

• (a) the person who performs the function reports directly to—

• (i) a person who holds an office or position mentioned in a subparagraph of subsection (4)(a) in the regulated financial service provider or holding company, or

• (ii) in the case of a regulated financial service provider, a person referred to in paragraph (b) or (c) of subsection (4),

and

• (b) the Bank is satisfied that the prescription of the function as a pre‑approval controlled function—

• (i) is warranted on the grounds of the size or complexity of the regulated financial service provider or holding company or its business, and

• (ii) is necessary or prudent in order to verify the compliance by the regulated financial service provider or holding company with its relevant obligations.

• (4) For the purposes of subsections (2) and (2A), each of the following shall be taken to exercise a significant influence on the conduct of the affairs of the regulated financial service provider or holding company concerned (in this subsection referred to as "the entity"):

• (a) where the entity is a body corporate of a prescribed class, a person who holds, or performs the duties of, any of the following offices or positions in the entity:

• (i) the office of director;

• (ii) the office of chief executive;

• (iii) the office of secretary;

• (iv) subject to subsection (3), an office or position the holder of which reports directly to—

• (I) a person who holds an office referred to in subparagraph (i), (ii) or (iii) in the entity, or

• (II) where the entity is a regulated financial service provider, a person referred to in paragraph (b) or (c);

• (b) where the entity is a partnership that is a regulated financial service provider of a prescribed class, each member of the partnership;

• (c) where the entity is a natural person that is a regulated financial service provider of a prescribed class, that person.]

• (5) For the purposes of subsection (4)(a), the Bank may prescribe bodies corporate of a specified class or may prescribe all bodies corporate to be a class. In prescribing bodies corporate of a particular class, the Bank may define the class by reference to any common characteristic of the class, including in particular the kind of business engaged in or the size of the balance sheets of the bodies corporate.

• (6) For the purposes of paragraph (b) or (c) of subsection (4), the Bank may prescribe regulated financial service providers that are partnerships or natural persons, as the case may be, of a specified class or may prescribe all regulated financial service providers that are partnerships or natural persons to be a class. In prescribing regulated financial service providers that are partnerships or natural persons of a particular class, the Bank may define the class by reference to any common characteristic of the class, including in particular the kind of business engaged in or the annual turnover of the partnerships or natural persons concerned.

• (7) Regulations made under this section may be made in the same instrument as regulations made under section 20.

• (8) The Bank may declare by notice in writing served on a regulated financial service provider that a function performed by, for or on behalf of the regulated financial service provider is a pre-approval controlled function if—

• (a) the person who performs the function is concerned in the management of the regulated financial service provider,

• (b) the function is not prescribed as a pre-approval controlled function in regulations made pursuant to subsection (2), and

• (c) no other person in the regulated financial service provider performs a pre-approval controlled function.

23. Appointment of persons to perform pre-approval controlled functions.

23.—F16[(1) F17[Subject to section 23A, a regulated financial service provider] F18[or holding company] shall not appoint a person to perform a pre-approval controlled function F18[in relation to it] unless the Bank has approved in writing the appointment of the person to perform the function.]

• (2) For the purposes of considering whether or not to approve F18[the appointment of] a person under subsection (1), the Bank may request the person, or a specified officer or employee of the regulated financial service provider F18[or holding company] that proposes to appoint the person to perform a F18[pre-approval] controlled function, by notice in writing to do any one or more of the following:

• (a) produce a specified document or documents to the Bank;

• (b) provide specified information to the Bank;

• (c) produce to the Bank documents of a kind described in the notice;

• (d) answer a question or questions set out in the notice;

• (e) attend before a specified officer or employee of the Bank for interview.

• (3) A notice under subsection (2) shall specify a date and time by which, and a place at which, the person shall provide the document or documents or information, provide answers to the question or questions, or attend for interview, as the case may be.

• (4) Nothing in subsection (2) or any notice given by the Bank under that subsection requires a person—

• (a) to produce to the Bank a document that the person could not have been compelled to produce to a court,

• (b) to give the Bank information that the person could not have been compelled to give a court, or

• (c) to answer a question (either in writing or at interview) that the person could not have been compelled to answer in a court.

• (5) The Bank may refuse to approve the appointment of a person for the purposes of subsection (1) where—

• (a) the Bank is of the opinion that the person is not of such fitness and probity as is appropriate to perform the function for which he or she is proposed to be appointed, or

• (b) the Bank is unable to decide, on the basis of the information available to it, whether the person is of such fitness and probity.

• (6) Without prejudice to the generality of subsection (5), the Bank may refuse to approve the appointment of a person under subsection (1) if—

• (a) the person, or an officer or employee of the regulated financial service provider F18[or holding company] concerned, has failed to comply with a request under subsection (2), or

• (b) any of the grounds set out in paragraphs F16[(a) to (h)] of section 25(3) apply.

• (7) A refusal pursuant to subsection (5) is an appealable decision for the purposes of Part VIIA of the Act of 1942.

• F18[(8) Where—

• (a) the Bank is considering under subsection (1) whether to approve an appointment,

• (b) the appointment will be to perform a pre-approval controlled function in relation to a regulated financial service provider, and

• (c) the person proposing to make the appointment is not yet a regulated financial service provider,

subsection (2) applies as if references in that subsection to a regulated financial service provider were references to that person.]

23A. F19[Notification and approval of appointment

23A.—F20[(1) A significant supervised entity (within the meaning of the SSM Framework Regulation) which is a regulated financial service provider or holding company shall not—

• (a) appoint a person to its management body (within the meaning of the European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014)), or

• (b) make any other appointment the approval of which is subject to the exclusive competence of the ECB under Article 4(1)(e) of the SSM Regulation,

unless the entity has been notified in writing by the ECB that it has approved the appointment.]

• (2) Where the Bank receives an application from an entity for the purposes of seeking approval from the ECB under subsection (1), it shall send that application to the ECB without delay.

• (3) For the purposes of the making of a decision by the ECB as to whether or not to approve F21[the appointment of] a person under subsection (1), the Bank may request the person, or a specified officer or employee of the entity that proposes to appoint the person F22[…], by notice in writing to do any one or more of the following:

• (a) produce a specified document or documents to the Bank;

• (b) provide specified information to the Bank;

• (c) produce to the Bank documents of a kind described in the notice;

• (d) answer a question or questions set out in the notice;

• (e) attend before a specified officer or employee of the Bank for interview.

• (4) A notice under subsection (3) shall specify a date and time by which, and a place at which, the person shall provide the document or documents or information, provide answers to the question or questions, or attend for interview, as the case may be.

• (5) Nothing in subsection (3) or any notice given by the Bank under that subsection requires a person—

• (a) to produce to the Bank a document that the person could not have been compelled to produce to a court,

• (b) to give the Bank information that the person could not have been compelled to give a court, or

• (c) to answer a question (either in writing or at interview) that the person could not have been compelled to answer in a court.

• (6) An application for approval under subsection (1) shall be determined by the ECB in accordance with relevant European Union law.

• (7) F22[…]]

Chapter 3 Suspension and investigation of fitness and probity of persons performing controlled functions, etc.

24. Definition (Chapter 3).

24.— In this Chapter “suspended person” means a person who is the subject of a suspension notice.

25. Head of Financial Regulation may investigate persons’ fitness and probity.

25.— (1) If in relation to a person to whom subsection (2) applies, the Head of Financial Regulation is of the opinion that—

• (a) there is reason to suspect the person’s fitness and probity to perform the relevant controlled function, and

• (b) in the circumstances an investigation is warranted into the person’s fitness and probity,

the Head of Financial Regulation may conduct an investigation, in accordance with this Chapter, in relation to the fitness and probity of the person to perform the controlled function.

• (2) This subsection applies to a person—

• (a) if the person performs a controlled function in relation to a regulated financial service provider F23[or holding company],

• F23[(aa) subject to subsection (2A), if the person has performed a controlled function in relation to a regulated financial service provider or holding company within the period of 6 years immediately preceding the commencement of the investigation referred to in subsection (1),]

• (b) if, to the knowledge of the Head of Financial Regulation, a regulated financial service provider F23[or holding company] proposes to appoint the person to carry out a controlled function (other than a pre-approval controlled function) F23[in relation to it], or

• (c) if the Head of Financial Regulation has reason to believe that a regulated financial service provider F23[or holding company] is considering the appointment of the person to perform a controlled function (other than a pre-approval controlled function) F23[in relation to it].

• F23[(2A) Where the period from the date of commencement of paragraph (aa) of subsection (2) to the beginning of an investigation under subsection (1) is less than 6 years, that paragraph applies as if the reference to the period of 6 years were a reference to that shorter period.]

• (3) Without prejudice to the generality of subsection (1), the Head of Financial Regulation may form the opinion referred to in that subsection if there is reason to suspect that—

• (a) the person does not have the experience, qualifications or skills necessary to perform properly and effectively the controlled function, F24[…]

• (b) the person does not satisfy an applicable standard of fitness and probity in a code issued pursuant to section 50,

• F25[(c) the person has committed or participated in serious misconduct in relation to the affairs of a regulated financial service provider or holding company,]

• F26[(ca) the person, being a person who has been appointed to perform a pre-approval controlled function, has failed to make a disclosure to the Bank under section 38(2) of the Central Bank (Supervision and Enforcement) Act 2013 or has made such a disclosure knowing it to be false or misleading in a material respect,]

• (d) the person has directly or indirectly provided information to the Bank, the Governor or the Head of Financial Regulation (whether pursuant to this Part or otherwise) that the person knew or ought to have known was false or misleading,

• (e) the person has directly or indirectly provided information that the person knew or ought to have known was false or misleading to another person in order for it to be provided to the Bank, the Governor or the Head of Financial Regulation,

• (f) the person has caused or sought to cause information requested by the Head of Financial Regulation by evidentiary notice from a regulated financial service provider F23[or holding company] or a person who is carrying out a controlled function not to be provided by the due date,

• (g) the person has failed to comply with an evidentiary notice, or

• (h) the person has been convicted of an offence (whether in the State or outside the State) of money laundering or terrorist financing or an offence involving fraud, dishonesty or breach of trust.

25A. F27[Notice of investigation

25A.— (1) As soon as practicable after a decision is made by the Head of Financial Regulation to conduct an investigation in accordance with this Chapter, the Head of Financial Regulation shall serve on the person to whom the investigation relates notice in writing of the investigation.

• (2) A notice under subsection (1) shall include—

• (a) a statement of the reasons for holding the opinion referred to in section 25(1)(a),

• (b) a copy of such material on which that opinion is based as the Head of Financial Regulation considers appropriate, and

• (c) a statement that a response to the contents of the notice will be taken into account if made by the person in writing within the period stated in the notice, which shall be—

• (i) 7 days from the date on which the notice is served, or

• (ii) such longer period as the Head of Financial Regulation considers necessary to provide an opportunity to respond.

• (3) The Head of Financial Regulation shall take such steps as he or she considers reasonable to keep the person to whom an investigation relates informed as to the progress of the investigation.

• (4) If an investigation is discontinued, the Head of Financial Regulation shall, as soon as practicable, serve on the person to whom the investigation relates notice in writing which—

• (a) states that the investigation has been discontinued, and

• (b) gives one or more of the following reasons for the discontinuance:

• (i) that the Head of Financial Regulation is no longer of the opinion that there is reason to suspect the person’s fitness and probity to perform the relevant controlled function;

• (ii) that the Head of Financial Regulation is no longer of the opinion that any reason to suspect the person’s fitness and probity to perform the relevant controlled function is sufficient to warrant an investigation;

• (iii) that the investigation has been discontinued for reasons of resources;

• (iv) that the investigation has been discontinued for policy reasons;

• (v) that the investigation has been discontinued for reasons of any other description stated in the notice.]

26. Head of Financial Regulation may issue suspension notice, etc.

26.— F28[(1) The Head of Financial Regulation may issue a notice (in this Part called a "suspension notice") in relation to a person if—

• (a) subject to subsection (1A), the person’s fitness and probity is or has been the subject of an investigation under section 25, or

• (b) the Bank or the Governor has imposed a prohibition on the person under section 43 (whether or not there has been any investigation under section 25),

and the Head of Financial Regulation is satisfied that it is necessary in the interests of the proper regulation of a regulated financial service provider or holding company that the person not perform the relevant controlled function, a part of the relevant controlled function, or any controlled function, while the Head of Financial Regulation, the Bank or the Governor, as the case may be, is carrying out any function in relation to the person under this Chapter or Chapter 4.]

• F29[(1A) In paragraph (a) of subsection (1), the reference to an investigation under section 25 does not include an investigation in the circumstances referred to in paragraph (aa) of section 25(2), unless any other paragraph of section 25(2) also applies.

• (1B) Where paragraph (b) of subsection (1) applies, the reference in that subsection to the relevant controlled function, or a part of the relevant controlled function, is a reference to a controlled function, or a part of a controlled function, to which the prohibition applies.]

• (2) When considering whether to issue a suspension notice, the Head of Financial Regulation shall have particular regard, where appropriate, to—

• (a) the need to prevent potential serious damage to the financial system in the State and ensure the continued stability of that system, and

• (b) the need to protect users of financial services.

• (3) Before issuing a suspension notice in the circumstances referred to in section 25(2)(c), the Head of Financial Regulation shall ask the regulated financial service F28[provider or holding company concerned] in writing whether it is actually considering the appointment of the person concerned to perform the relevant controlled function. If the regulated financial service provider F29[or holding company] confirms in writing that it is not considering such an appointment, the Head of Financial Regulation shall not issue the notice unless there is reason to believe that such an appointment will nevertheless be made, or has been made.

• (4) A suspension notice—

• (a) is required to be in writing,

• (b) shall set out the grounds on which the Head of Financial Regulation holds the opinion referred to in F28[section 25(1)(a) or, where subsection (1)(b) of this section applies, details of the prohibition],

• (c) shall specify whether the suspended person is suspended from performing—

• (i) a particular specified controlled function,

• (ii) a specified part of a particular specified controlled function, or

• (iii) all controlled functions,

• F28[(d) shall require the suspended person and any regulated financial service provider or holding company on which a copy of the notice is served to show cause, in writing, within 5 days after service of the notice, why the suspension notice should not be confirmed, and]

• F28[(e) shall set out, for any regulated financial service provider or holding company on which any terms and conditions are imposed under subsection (8), the terms and conditions imposed.]

• (5) The Head of Financial Regulation shall serve a copy of a suspension notice on each of the following:

• (a) the suspended person;

• (b) each regulated financial service provider F29[or holding company] for whom, to the knowledge of the Head of Financial Regulation, the suspended person performs the specified controlled function, the specified part of a controlled function, or any controlled function, as the case requires;

• (c) any regulated financial service provider F29[or holding company] that—

• (i) to the knowledge of the Head of Financial Regulation, proposes to appoint the suspended person to perform the specified controlled function, the specified part of a controlled function, or any controlled function, as the case requires, or

• (ii) the Head of Financial Regulation believes to be considering appointing the suspended person to perform the specified controlled function, the specified part of a controlled function, or any controlled function, as the case requires.

• (6) F30[…]

• (7) A regulated financial service provider F29[or holding company] on which a suspension notice is served shall immediately—

• (a) give a copy of the notice to the suspended person (unless it is impracticable to do so), and

• (b) after it has done so, certify in writing to the Head of Financial Regulation that it has done so.

• (8) In a suspension notice the Head of Financial Regulation may impose on F28[any regulated financial service provider or holding company on which a copy of the notice is served] any terms and conditions relating to the enforcement of, or compliance with, the notice that the Head of Financial Regulation thinks fit (F28[including any terms and conditions] as to the cessation, restriction or conduct of all or part of F28[its business until it complies with the notice]).

• (9) A suspended person, and a regulated financial service provider F29[or holding company] on which a suspension notice is served, may, within the period mentioned in subsection (4)(d), make a written submission to the Head of Financial Regulation F28[as to why the suspension notice should not be confirmed] or any terms or conditions imposed.

• (10) Where a person on whom a suspension notice has been served asks the Head of Financial Regulation to decide, before the end of the period provided by section 28 (b) (i), whether or not to confirm the suspension notice, and provides material that the Head of Financial Regulation is satisfied allows him or her to make a proper and fair decision, the Head of Financial Regulation shall make all reasonable efforts to make that decision as soon as reasonably practicable.

27. Effect of suspension notices.

27.— (1) A regulated financial service provider F31[or holding company] on whom a suspension notice is served—

• (a) shall immediately remove the suspended person concerned from performing—

• (i) the particular controlled function concerned,

• (ii) the specified part of the controlled function concerned, or

• (iii) all controlled functions,

as specified in the notice, or

• (b) shall not appoint the suspended person to carry out the controlled function or part, or any controlled function, as specified in the notice,

as the case requires.

• (2) A regulated financial service provider F31[or holding company] on whom a suspension notice is served shall comply with any F32[terms and conditions] imposed on the regulated financial service provider by the notice.

• (3) A suspended person on whom a suspension notice in relation to him or her is served, or who has been given a copy of such a notice by a regulated financial service provider F31[or holding company] shall cease performing, or (as the case requires) shall not begin to perform—

• (a) the particular controlled function concerned,

• (b) the specified part of the controlled function concerned, or

• (c) all controlled functions,

as specified in the relevant suspension notice.

• (4) A suspension notice does not alter the contractual rights of any person to remuneration or benefits. Those rights shall continue to be determined in accordance with the relevant contract.

28. Suspension notices that have not been confirmed — period of effect.

28.— A suspension notice that has not been confirmed by the Head of Financial Regulation pursuant to section 29—

• (a) takes effect on its service on the regulated financial service provider F33[or holding company] for whom the suspended person performs the relevant controlled function, and

• (b) ceases to have effect—

• (i) at the end of the 10th day after that service, unless within that period it is confirmed in accordance with section 29, or

• (ii) if before the end of that day the Head of Financial Regulation revokes the notice, when the notice is revoked.

29. Confirmation of suspension notices.

29.— (1) If the Head of Financial Regulation, having considered any written submissions made pursuant to section 26 within the period mentioned in section 26 (4) (d) by a person on whom, or a regulated financial service provider F34[or holding company] on which, a suspension notice has been served, is F35[satisfied]—

• F35[(a) (except where the suspension notice was issued in the circumstances mentioned in section 26(1)(b)) that there is still reason to suspect the person’s fitness and probity to perform the relevant controlled function, and

• (b) that it is necessary in the interests of the proper regulation of the regulated financial service provider or holding company that the person not perform the controlled function, the part of the controlled function, or any controlled function, while the Head of Financial Regulation, the Bank or the Governor is carrying out a function in relation to the person under this Chapter or Chapter 4,]

• (c) F36[…]

the Head of Financial Regulation may confirm the suspension notice.

• (2) To avoid any doubt, the Head of Financial Regulation may confirm a suspension notice at the end of the period mentioned in section 26(4)(d) even if no submission has been made in relation to it by either or both of the suspended person and any regulated financial service provider F34[or holding company] concerned.

• (3) If a suspended person makes a submission in relation to a suspension notice after the end of the period mentioned in section 26(4)(d), and the Head of Financial Regulation is satisfied that there was good reason why the submission could not have been made within that period, or that it is necessary to do so in the interests of justice, the Head of Financial Regulation shall—

• (a) consider the submission, and

• (b) if after doing so he or she is satisfied that F35[the condition in paragraph (a) of subsection (1), where it applies, or paragraph (b) of that subsection] is no longer satisfied, revoke the notice.

• F35[(4) A suspension notice that has been confirmed in accordance with subsection (1) has effect until—

• (a) the end of the period of 6 months from the date on which the suspension notice would otherwise have ceased to have effect under section 28(b), or

• (b) if sooner, the revocation of the notice or, where the suspension notice was issued in the circumstances mentioned in section 26(1)(b), the time when an application under section 45 for confirmation of the prohibition notice has been disposed of.]

• (5) The Head of Financial Regulation shall serve a notice of the confirmation of a suspension notice on each person on whom the suspension notice was served.

• F34[(5A) A notice served under subsection (5) shall state that the decision to confirm the suspension notice is an appealable decision for the purposes of Part VIIA of the Act of 1942.]

• F35[(6) The Head of Financial Regulation may revoke a suspension notice at any time if he or she considers that it is no longer necessary in the interests of the proper regulation of the regulated financial service provider or holding company concerned that the person not perform the relevant controlled function, the relevant part of a controlled function, or any controlled function, while the Head of Financial Regulation, the Bank or the Governor is carrying out a function in relation to the person under this Chapter or Chapter 4.]

• F34[(7) A decision by the Head of Financial Regulation to confirm a suspension notice is an appealable decision for the purposes of Part VIIA of the Act of 1942, and the Appeals Tribunal shall have particular regard to the need for expedition in hearing an appeal against such a decision.]

30. Enforcement of suspension notice.

30.— If—

• (a) a person performs a controlled function or part of a controlled function in contravention of a suspension notice, or

• (b) a regulated financial service provider F37[or holding company] permits a suspended person to perform a controlled function or part of a controlled function F37[in relation to it] in contravention of a suspension notice,

the Head of Financial Regulation may apply ex parte to the Court for an order directing the person F38[or the regulated financial service provider or holding company] to comply with the notice.

31. Court’s power to extend validity of suspension notices.

31.— (1) During the period of validity of a suspension notice that has been confirmed by the Head of Financial Regulation, the Head of Financial Regulation may apply to the Court, on notice to the suspended person and any regulated financial service provider F39[or holding company] on which the notice was served, for an order extending the period of validity of the notice.

• (2) If the Court is satisfied, having regard to the reasons for the issue and confirmation of the notice stated by the Head of Financial Regulation, that there are sufficient grounds to extend the period of validity of the notice, the Court may extend the notice for such further period (but not longer than a further F40[6 months]) as the Court orders.

• F39[(2A) The making of an order under subsection (2) does not prevent the making of a further order.

• (2B) Subject to subsection (2C), orders under subsection (2) shall not in total extend a suspension notice for more than 24 months from the end of the period of 6 months referred to in section 29(4).

• (2C) Where a prohibition is imposed on the suspended person under section 43, or where the suspension notice was issued following the imposition of a prohibition under section 43, subsection (2B) does not apply, but orders under subsection (2) shall not extend the suspension notice beyond the time when an application under section 45 for confirmation of the prohibition notice has been disposed of.]

• (3) When considering whether to make an order under subsection (2), the Court shall give particular regard to—

• (a) the need to prevent potential serious damage to the financial system in the State and ensure the continued stability of that system, and

• (b) the need to protect users of financial services.

32. Head of Financial Regulation may require persons to give evidence or produce documents.

32.— (1) The Head of Financial Regulation may serve a notice (in this Part called an “evidentiary notice”) on a person requiring the person—

• (a) to appear before the Head of Financial Regulation to give evidence about a matter,

• (b) to provide information to the Head of Financial Regulation, or

• (c) to produce a document for examination,

if—

• (i) the Head of Financial Regulation is investigating the person’s fitness and probity under this Chapter, or

• (ii) the Head of Financial Regulation believes on reasonable grounds that the person may be able to give evidence, or to produce a document, that relates to a matter concerning the fitness or probity of a person whose fitness and probity is being investigated under this Chapter.