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Central Bank (Supervision and Enforcement) Act 2013

Type Act

Publication 2013-07-11

Last updated 2026-07-07

State Partially repealed

Text Latest available text

Source Irish Statute Book

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articles 97

This is the most recent text the official source publishes. It is not a snapshot of the law as it stood on the date of each change.

29 amending acts · 2026-07-07, revised-IE-2013-act-26@2026-07-07

Act to further provide for the regulation and supervision of financial service providers and financial services; to further provide for the enforcement of financial services legislation; to provide for the protection of persons reporting breaches; for those and other purposes to provide for amendments to, and to further amend and extend, the Central Bank Acts 1942 to 2012 and certain other acts and statutory instruments, and to provide for related matters

Reform history JSON API

(6) A decision by the Bank to give a direction under subsection (1) is an appealable decision for the purposes of Part VIIA of the Act of 1942.

(7) The provisions of a direction given under subsection (1) have effect from the date specified in the direction in relation to them.

(8) A direction given under subsection (1) shall set out—

(a) all terms of the direction, including any specification of a date by which, or a period within which, any provision made by it is to be complied with, and

(b) any incidental, consequential or supplemental provisions for implementing the direction and securing that it is fully and effectively carried out.

(9) The Bank may publish a direction given under subsection (1) in any such manner as the Bank considers appropriate.

(10) Where the Bank is considering a complaint, or investigating any other matter, for the purpose of deciding whether to give a direction under subsection (1) it may publish notice that it is doing so in any such manner as the Bank considers appropriate.

(11) The duty imposed on the Bank by section 57BX(11) of the Act of 1942 to refer a complaint to the Financial Services Ombudsman does not apply in relation to a complaint if the Bank has dealt with the complaint by giving a direction under subsection (1) or during any period when the Bank is considering the complaint for the purpose of deciding whether to give such a direction.

(12) The duty imposed on the Financial Services Ombudsman to investigate a complaint does not apply if the Bank has dealt with the complaint by giving a direction under subsection (1) or during any period when the Bank is considering the complaint for the purpose of deciding whether to give such a direction.

44. Actions for damages.

44.— A failure by a regulated financial service provider to comply with any obligation under financial services legislation is actionable by any customer of the regulated financial service provider who suffers loss or damage as a result of such failure.

PART 7 Bank’s Power to Give Directions

45. Bank’s power to give directions.

45.— (1) Where the Bank is satisfied that one or more of the circumstances specified in subsection (2) exist in relation to a regulated financial service provider, or a related undertaking of a regulated financial service provider, the Bank may, in the interests of the proper and effective regulation of financial service providers, give a direction in writing to the regulated financial service provider or related undertaking to take such of the actions specified in subsection (3) as are mentioned in the direction.

(2) The circumstances referred to in subsection (1) are as follows:

(a) that the regulated financial service provider, or related undertaking, has become or is likely to become unable to meet its obligations to its creditors or its customers;

(b) that the regulated financial service provider, or related undertaking, is not maintaining or is unlikely to be in a position to maintain adequate capital or other financial resources having regard to the volume and nature of its business;

(c) that the regulated financial service provider, or related undertaking, has failed to comply with, is failing to comply with or is likely to fail to comply with any condition or requirement imposed by, or by virtue of, financial services legislation;

(d) that the regulated financial service provider, or related undertaking, is conducting business in such a manner as to jeopardise or prejudice—

(i) monies, securities or other investment instruments or other property held by or controlled by it on behalf of customers, or

(ii) the rights and interests of customers;

(e) that there may be grounds for revoking or not renewing the regulated financial service provider’s authorisation.

(3) The actions referred to in subsection (1) are as follows:

(a) to suspend, for such period not exceeding 12 months as is specified in the direction, any one or more of the following:

(i) the provision of any financial service, or description of financial service, specified in the direction;

(ii) the making of payments to which subparagraph (i) does not relate or any such payments or description of such payments specified in the direction;

(iii) the acquisition or disposal of any assets or liabilities, or description of assets or liabilities, specified in the direction;

(iv) entering into transactions or agreements, or description of transactions or agreements, specified in the direction, or entering into them except in specified circumstances or to a specified extent;

(v) soliciting business from persons of a class specified in the direction;

(vi) carrying on business in a manner specified in the direction or otherwise than in a manner so specified;

(b) to dispose of, on terms specified in the direction, assets or liabilities so specified, or a part or parts of its business so specified, within such period as may be so specified;

(d) to make such modifications to its systems and controls as may be specified in the direction;

(e) to make such modifications to its business practices and dealings with third parties as may be specified in the direction;

(f) to comply with the condition or requirement referred to in subsection (2)(c);

(g) to notify third parties of any such actions within paragraphs (a) to (f) as may be specified in the direction.

(4) Where the Bank gives a direction under subsection (1) to a regulated financial service provider or a related undertaking (in this subsection referred to as the “principal provider”), the Bank may, where it considers it necessary for the purpose of securing compliance with that direction, give a direction in writing to any regulated financial service provider at which the principal provider holds an account of any description to cease making payments from, or entering into or performing other transactions in respect of, such account without the prior authorisation of the Bank.

(5) The provisions of a direction under subsection (1) or (4) have effect from the date specified in the direction in relation to them.

(6) A direction under subsection (1) or (4) shall set out—

(a) all terms of the direction, including any specification of a date by which, or a period within which, any provision made by it is to be complied with, and

(b) any incidental, consequential or supplemental provisions for implementing the direction and ensuring that it is fully and effectively carried out.

(7) If the Bank gives a direction under subsection (1) or (4) the intention of which, or part of which, is the preservation or restoration of the financial position of a credit institution within the meaning of Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 ² and which is capable of affecting the rights of third parties existing before the direction comes into effect, the Bank shall declare in the direction that the direction or part of it is made with that intention, in accordance with that Directive.

(8) The Bank may publish a direction under subsection (1) or (4) in any such manner as the Bank considers appropriate.

(9) A regulated financial service provider, or a related undertaking, to whom a direction is given under paragraph (a) or (b) of subsection (3) may apply to the High Court for an order setting aside the direction.

(10) A regulated financial service provider to whom a direction is given under subsection (4) may apply to the High Court for an order setting aside the direction.

(11) An application under subsection (9) shall be made to the High Court within 14 days beginning on the date of receipt of the direction by the regulated financial service provider, or the related undertaking, or such further period as the High Court considers just and equitable in the circumstances, and the High Court may make such interim or interlocutory order as it considers appropriate.

(12) An application under subsection (10) shall be made to the High Court within 14 days beginning on the date of receipt of the direction by the regulated financial service provider or such further period as the High Court considers just and equitable in the circumstances, and the High Court may make such interim or interlocutory order as it considers appropriate.

(13) Where the High Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings relating to an application under subsection (9) or (10) may be heard otherwise than in public.

(14) A decision by the Bank to issue a direction under any of paragraphs (c) to (g) of subsection (3) is an appealable decision for the purposes of Part VIIA of the Central Bank Act 1942.

46. Prior approval of High Court for certain proceedings.

46.— (1) Where a direction given under subsection (1) or (4) of section 45 in respect of a regulated financial service provider or related undertaking so provides—

(a) no relevant proceedings may be commenced or continued, and

(b) no assets of the regulated financial service provider or related undertaking may be attached, sequestered or otherwise distrained,

except with the prior approval of the High Court while the direction remains to be complied with.

(2) For the purposes of subsection (1) “relevant proceedings”, in relation to a regulated financial service provider or related undertaking, means—

(a) proceedings relating to the winding-up or dissolution of the regulated financial service provider or related undertaking,

(b) receivership or bankruptcy proceedings of which the regulated financial service provider or related undertaking is the subject, or

(c) any other proceedings under which an assignee or other person becomes responsible for the affairs of the regulated financial service provider or related undertaking pending the regulated financial service provider or related undertaking ceasing to carry on business.

47. Bank may apply to High Court for orders enforcing directions.

47.— (1) If the Bank is of the opinion that a direction given under subsection (1) or (4) of section 45 has not been or is not being complied with, the Bank may apply to the High Court for an order requiring a person to comply with the direction.

(2) If the High Court is satisfied that a person has refused or failed or is refusing or failing to take an action the person is required to take by or under a direction given under subsection (1) or (4) of section 45, the High Court may make an order requiring the person to take that action.

(3) On an application to it under subsection (1), the High Court may make any such interim or interlocutory order as it considers appropriate.

(4) An order under subsection (2) may include an order to take such ancillary or incidental steps as the High Court may consider appropriate to give full effect to the order.

(5) Where the High Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings under this section may be heard otherwise than in public.

47A. F26[Financial holding companies and mixed financial holding companies

47A. In this Part—

(a) a reference to a financial service provider shall include a reference to a financial holding company or a mixed financial holding company, and

(b) a reference to a regulated financial service provider shall include a reference to a financial holding company or a mixed financial holding company.]

PART 8 Bank’s Power to Make Regulations

48. Bank’s power to make regulations.

48.— (1) The Bank may make regulations for the proper and effective regulation of regulated financial service providers.

(2) The provision that may be made by the regulations referred to in subsection (1) is as follows:

(a) provision as to the procedures that regulated financial service providers are to adopt for identifying, monitoring, reporting on the risks to which they are or may be exposed (including those posed by the state of the economy) and for managing those to which they are exposed so as to minimise them;

(b) provision regulating the administrative, accounting, auditing and reporting arrangements of regulated financial service providers;

F27[(ba) provision specifying the aspects of a regulated financial service provider’s affairs for which a PCF holder has inherent responsibility for the purposes of section 53B of the Central Bank Reform Act 2010;

(bb) provision specifying the aspects of a regulated financial service provider’s affairs for which responsibility is to be allocated by the regulated financial service provider to a PCF holder for the purposes of section 53B of the Central Bank Reform Act 2010;

(bc) provision as to the arrangements described in subsection (2A) that a regulated financial service provider is to adopt;]

(c) provision for the monitoring and recording by regulated financial service providers of the training and qualifications of their officers, employees, agents and intermediaries;

(d) provision about the resources to be maintained, and the procedures, systems and checks to be adopted, by regulated financial service providers for meeting their obligations under financial services legislation, and their obligations to customers, in a manner consistent with complying with their other obligations and for ensuring that their obligations to their customers are discharged by their agents and intermediaries;

(e) provision for securing that regulated financial service providers do not prevent access to financial services which in the opinion of the Bank are necessary to enable customers to make and receive payments or engage in other financial transactions which form a necessary part of the customers’ participation in basic economic activity;

(f) provision specifying the information to be given to customers by regulated financial service providers, including provision requiring—

(i) marketing, advertising or other promotional material (in whatever media) associated with financial services to be identified as such,

(ii) the giving of specified information about the regulated financial service provider and the financial services provided by it,

(iii) the identification of risks associated with financial services,

(iv) the giving, in a specified manner, of warnings of any volatility of price or value in relation to any financial products provided, of any limitations on the available market for the financial products and of other specified matters,

(v) the giving to customers of information about incentives in relation to financial services, including as to the advantages and disadvantages of taking up the incentives, the duration of their availability, the assumptions on which they are based, their cost, any other material information which customers should have for deciding whether to take them up and the desirability of seeking of independent advice before taking them up,

(vi) the identification of any additional financial obligations or commitments which might arise for customers after receiving financial services,

(vii) the making of comparisons between financial services and other financial services and the application of specified alternative assumptions in relation to financial services,

(viii) the giving of information about costs and associated charges relating to financial services,

(ix) the making to customers of statements as to whether financial services are suitable,

(x) that any recommendations about, or endorsements of, financial services be given only in accordance with specified conditions, and

(xi) that all information provided be accurate (and not misleading) and clear and easily understood by the average customer;

(g) provision restricting the making by regulated financial service providers of unsolicited phone calls or visits to customers;

(h) provision requiring regulated financial service providers to seek and (where provided) take account of information from customers for the purposes of assessing—

(i) customers’ knowledge and understanding of, and experience in relation to, financial services, and

(ii) the suitability of financial services for customers (having regard to their requirements, personal circumstances, financial position and other relevant circumstances),

and provision about what shall or may be done by regulated financial service providers if information sought from customers is not provided;

(i) provision specifying requirements which are to apply in relation to the provision of financial services to customers for the purpose of determining the suitability of the financial services for the customers;

(j) provision about the management of conflicts of interest that may arise as between customers and regulated financial service providers, their officers, employees, agents or intermediaries or related undertakings, in the provision of financial services;

(k) provision about the standards (for example as to speed, cost and accuracy) to be met by regulated financial service providers in relation to the execution of customer orders or requests for the provision of financial services;

(l) provision about the making of loans and making available of other credit facilities or the provision of other financial services to customers by regulated financial service providers, including provision—

(i) restricting the provision of unsolicited loans or credit facilities to customers,

(ii) specifying processes by which regulated financial service providers are to assess and process applications for loans or other credit or other financial services,

(iii) setting out circumstances in which, and conditions subject to which, security or guarantees may be required in relation to customers to whom loans are made or credit made available or other financial services provided,

(iv) requiring the giving of notification to persons giving security or guarantees in respect of loans, other credit facilities or other financial services of changes in the terms of the loans, other credit facilities or other financial services,

(v) specifying processes by which regulated financial service providers may decline to make loans or make available or withdraw credit or to provide other financial services, including the giving of explanations,

(vi) specifying the conditions subject to which loans may be made, credit may be made available or other financial services may be provided, and

(vii) prohibiting the making of the provision of one financial service to a customer dependent on the provision to the customer of another, except where that is required by law;

(m) provision about the making of loans, the making available of other credit facilities and the provision of other financial services by a regulated financial service provider to a restricted person, including provision—

(i) imposing restrictions on the terms on which loans may be made, varied or managed, other credit facilities may be made available, varied or managed, or other financial services may be provided, to restricted persons,

(ii) about the systems to be adopted for the management of the making of loans, making available of other credit facilities, or provision of other financial services, to restricted persons,

(iii) specifying circumstances in which the Bank’s approval is required for the making of loans, making available of other credit facilities, or provision of other financial services, to restricted persons, and

(iv) requiring the reporting of loans made, other credit facilities made available, or other financial services provided, to restricted persons;

(n) provision requiring—

(i) the giving of reasons for refusals to provide quotations for insurance cover applied for and for not accepting claims under policies or contracts of insurance,

(ii) the giving of notification in relation to decisions on claims under policies and contracts of insurance and in relation to the carrying out of work to repair property under such policies and contracts including the cost and scope of such work and its certification, and

(iii) the giving of information in relation to appeals procedures;

(o) provision requiring the giving of statements of account by regulated financial service providers to customers in respect of financial services, including the information to be given in such statements, the form and frequency of such statements and the manner in which such statements are to be given;

(p) provision about the standards to be met, and the procedures, systems and checks to be adopted, by regulated financial service providers for dealing with and holding the assets and money of customers, including provision about—

(i) the safeguarding of customers’ rights, in particular in the event of insolvency,

(ii) the use to which customers’ assets and money may be put, and

(iii) the management of customer accounts;

(q) provision for requiring regulated financial service providers to facilitate the switching of business by customers to other financial service providers, including provision—

(i) for the giving of information to customers about switching, and

(ii) specifying the procedures and other arrangements to be put in place to enable switching;

(r) provision about how regulated financial service providers are to deal with customers who are or are likely to be in financial difficulty (including customers who are or are likely to be in arrears) including, in relation to such customers, provision—

(i) setting out the considerations to be taken into account in considering how to deal with such customers,

(ii) specifying the information to be provided to such customers about the management of the arrears and the consequences of default, and

(iii) specifying the resolution processes to be adopted in relation to arrears,

(s) provision for the processes and procedures to be adopted by regulated financial service providers in respect of the processing of rebates and refunds owed to customers;

(t) provision about the ways in which errors made by regulated financial service providers in respect of their customers are to be corrected;

(u) provision requiring the making available of simple and inexpensive resolution procedures for disputes between regulated financial service providers and customers and for securing that complaints by customers about regulated financial service providers are dealt with speedily, efficiently and fairly, including provision—

(i) about the first point of contact for complainants,

(ii) regulating the recording of complaints,

(iii) specifying timescales for responding to complaints,

(iv) about the remedies and redress, including reimbursement or compensation (or both), to be available in cases of complaints,

(v) for determining where responsibility for dealing with complaints lies in cases where more than one financial service provider is involved, and

(vi) about the keeping and retention of records relating to complaints;

(v) in relation to any proposed transfer or cessation of any relevant part of the business of any regulated financial service provider or the merger of that business with the business of another person—

(i) provision for the giving of information relating to such transfer, cessation or merger, and

(ii) provision for ensuring that customers’ interests are sufficiently protected in the event of such transfer, cessation or merger;

(w) provision enabling the Bank to require regulated financial service providers to establish and maintain—

(i) plans for recovery from any deterioration in specified financial circumstances, in particular by setting out actions that could be taken to facilitate the continuation of the business or part of the business when experiencing financial instability, and

(ii) plans for the orderly winding-up or transfer of business in specified financial circumstances;

(x) provision for the keeping by regulated financial service providers of such records as may be required for effective management and regulation, including provision—

(i) about the form and manner in which, and period for which, they are to be kept,

(ii) enabling their verification, and

(iii) for permitting access by the Bank.

(y) any other provision relating to any of the matters set out in paragraphs (a) to (x) which the Bank considers appropriate.

F27[(2A) The arrangements referred to in subsection (2)(bc) are:

(a) arrangements for the regulated financial service provider to allocate to PCF holders for the purposes of section 53B of the Central Bank Reform Act 2010 responsibility for aspects of its affairs specified in regulations under subsection (2)(bb);

(b) arrangements for the regulated financial service provider, so as to ensure the proper conduct of its affairs, to allocate to a PCF holder for the purposes of section 53B of the Central Bank Reform Act 2010 responsibility for aspects of its affairs for which no PCF holder has inherent responsibility under regulations under subsection (2)(ba) or responsibility allocated under arrangements described in paragraph (a);

(c) arrangements for the regulated financial service provider to monitor the performance of pre-approval controlled functions in relation to it;

(d) arrangements to make clear the management structure that identifies the lines of authority and accountability, and specifies roles and responsibilities, in relation to the management of PCF holders and of other persons by PCF holders;

(e) arrangements to make clear the governance structure determining how the regulated financial service provider and PCF holders relate to persons concerned in the ownership or control of the regulated financial service provider or representing its customers or other stakeholders;

(f) arrangements for documenting arrangements referred to in paragraphs (a) to (e).]

(3) Regulations made under subsection (2)(m) may specify that a person is a restricted person—

(a) if he or she holds an office or employment, with the regulated financial service provider, of a description specified in the regulations,

(b) if he or she performs a function for, or provides a service, of a description specified in the regulations, to the regulated financial service provider, or

(c) in such circumstances as the regulations may specify, if he or she is related to, or a member of the same family as, a person within paragraph (a) or (b).

F27[(4) In this section—

"PCF holder" means a person performing a pre-approval controlled function in relation to the regulated financial service provider concerned;

"pre-approval controlled function" has the meaning given by section 18 of the Central Bank Reform Act 2010.]

49. Consultation before making regulations.

49.— (1) Before making regulations under section 48, the Bank—

(a) shall consult with the Minister and for that purpose shall provide to the Minister a draft of the proposed regulations,

(b) in the case of regulations under section 48(2)(b), shall also consult with the Minister for Enterprise, Jobs and Innovation and for that purpose shall provide to that Minister a draft of the proposed regulations, and

(2)
(a) This subsection applies to credit unions acting under an authorisation from the Bank under Part II of the Credit Union Act 1997.

(b) Before making regulations under section 48 in respect of credit unions to which this subsection applies, the Bank shall also consult with—

(i) the Credit Union Advisory Committee (within the meaning of the Credit Union Act 1997), and

(ii) any other body that appears to the Bank to have expertise or knowledge of credit unions.

50. Matters to which Bank to have regard when making regulations.

50.— When making regulations under section 48 the Bank shall have regard to the need to ensure that the requirements imposed by the regulations concerned 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 provider to whom the regulations apply.

F28[Assessment of costs and benefits of regulations

50A. (1) The Bank shall carry out an assessment of the costs and benefits of regulations it proposes to make under section 48 before making such regulations.

(2) An assessment referred to in subsection (1) shall include an assessment of the potential impacts of the proposed regulations on customers and fair competition in the financial markets in the State.

(3) The Bank shall, not later than the date of the making of any regulations under section 48, publish any assessment carried out under subsection (1) on a website maintained by it or on its behalf.]

51. Supplementary provisions relating to regulations.

51.— (1) Regulations made under section 48 may—

(a) contain any incidental, supplementary and consequential provisions that appear to the Bank to be necessary or expedient for the purposes of the regulations,

(b) apply either generally or to a specified class or classes of regulated financial service providers, F29[pre‑approval controlled functions,] customers or financial services,

(c) include different provisions in relation to different classes of regulated financial service providers, F29[pre‑approval controlled functions,] customers or financial services.

(2) Regulations made under section 48 shall be laid before each House of the Oireachtas as soon as may be after they are made.

PART 9 Enforcement

52. High Court enforcement orders on application by Bank.

52.— (1) If, in the opinion of the Bank, a person has engaged, is engaging or is about to engage in conduct that involved, involves or would involve contravening a provision of financial services legislation the Bank may apply to the Court for an order restraining the person from engaging in the conduct.

(2) If a person has refused or failed, is refusing or failing, or is about to refuse or fail, to do an act that the person is required to do by or under a provision of financial services legislation, the Court may make an order requiring the person to do that act.

(3) The Bank may apply ex parte to the Court for an order under this section and the Court may grant an order in such a case where the Court considers it necessary to do so in order to achieve the purposes of this section, including (in particular) in order to preserve the availability of any property, information, record or other thing.

(4) An order under this section may be made on such terms as the Court thinks appropriate.

(5) The Court may grant an interim order pending the determination of an application under this section.

(6) The Court may discharge or vary an order made under this section.

(7) The power of the Court to make an order restraining a person from engaging in conduct referred to in subsection (1) may be exercised—

(a) whether or not it appears to the Court that the person intends to repeat, or to continue, the conduct,

(b) whether or not the person has previously engaged in that kind of conduct, and

(8) The power of the Court to grant an order requiring a person to do an act may be exercised—

(a) whether or not it appears to the Court that the person intends to refuse or fail again, or to continue to refuse or fail, to do that act,

(b) whether or not the person has previously refused or failed to do that act, and

(9) Where the Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings before it under this section may be heard otherwise than in public.

(10) If the Bank applies to the Court to make an order under this section, the Court may not require the applicant or any other person to give an undertaking as to damages as a condition of granting an interim order.

(11) Whenever the Court has power under this section to make an order restraining a person from engaging in particular conduct, or requiring a person to do a particular act, it may, either in addition to or instead of making such an order, order the person to pay damages to another person.

(12) In this section “the Court” means the High Court.

53. Notices to the public.

53.— (1) The Bank may publish a notice in accordance with subsection (3) where the Bank reasonably believes that a company registered in the State, or any other person operating in the State, is—

(a) providing any financial service, without such authorisation as is required under any provision of financial services legislation in respect of the provision of such financial service, or

(b) claiming, or holding itself out, to be a regulated financial service provider, without such authorisation as is required under any provision of financial services legislation in respect of any financial service that the financial service provider claims or holds itself out to be providing.

(2) The Bank shall endeavour to provide the company or person referred to in subsection (1) with 7 days notice of the Bank’s intention to publish a notice under this section.

(3) The Bank may publish a notice under this section in any such manner as the Bank considers appropriate.

54. Restitution orders.

54.— (1) This section applies to a person—

(a) on whom any sanction has been imposed under section 33AQ, 33AR or 33AV of the Act of 1942,

(b) on whom any sanction has been imposed under:

(i) Regulation 99 of the Prospectus (Directive 2003/71/EC) Regulations 2005 (S.I. No. 324 of 2005),

(ii) Regulation 41 of the Market Abuse (Directive 2003/6/EC) Regulations 2005 (S.I. No. 342 of 2005), or

(iii) Regulation 67 of the Transparency (Directive 2004/109/EC) Regulations 2007 (S.I. No. 277 of 2007),

or,

(2) The High Court may, on the application of the Bank, make an order under subsection (3) in respect of a person to whom this section applies where the High Court is satisfied that as a result of the prescribed contravention or offence concerned—

(a) the person has been unjustly enriched, or

(b) one or more than one other person has suffered loss or other adverse effect.

(3) The High Court may order the person in respect of whom an application is made under subsection (2) to pay to the Bank such sum as appears to the High Court to be just having regard—

(a) in a case within subsection (2)(a), to the extent to which it appears to the High Court that the person concerned was unjustly enriched,

(b) in a case within subsection (2)(b), to the extent of the loss or other adverse effect,

(c) in a case within subsection (2)(a) and (b), to the extent to which it appears to the High Court that the person was unjustly enriched and to the extent of the loss or other adverse effect.

(4) Any amount paid to the Bank pursuant to an order under subsection (3) shall be paid by it to such persons or distributed by it among such persons as the High Court may direct.

(5) On an application under subsection (2) the High Court may require the person concerned to provide it with such accounts or other information as it may require for any one or more of the following purposes:

(a) establishing whether and, if so, to what extent the person has been unjustly enriched as mentioned in paragraph (a) of that subsection;

(b) establishing whether any person or persons have suffered any loss or other adverse effect as mentioned in paragraph (b) of that subsection and, if so, the extent of that loss or other adverse effect;

(6) The High Court may require any accounts or other information provided under subsection (5) to be verified in such manner as it may direct.

(7) Nothing in this section affects the right of any person other than the Bank to bring proceedings in respect of the matters to which this section applies.

55. Prosecution of offences.

55.— (1) In this section “relevant offence under financial services legislation” means an offence under financial services legislation to which section 10(4) of the Petty Sessions (Ireland) Act 1851 applies.

(2) Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act 1851 and any provision of financial services legislation, summary proceedings for a relevant offence under financial services legislation may be instituted—

(a) at any time within 3 years from the date on which the offence was committed, or

(b) if, at the expiry of that period, the person against whom the proceedings are to be brought is outside the State, within 6 months of the date on which he or she next enters the State, or

(c) at any time within 3 years from the date on which evidence that, in the opinion of the person by whom the proceedings are brought, is sufficient to justify the bringing of the proceedings, comes to that person’s knowledge,

whichever is the later, provided that no such proceedings shall be commenced later than 5 years from the date on which the offence concerned was committed.

(3) For the purpose of this section, a certificate signed by or on behalf of or jointly with the person bringing the proceedings as to the date on which evidence relating to the offence concerned came to his or her knowledge shall be prima facie evidence and in any legal proceedings a document purporting to be a certificate issued for the purpose of this subsection and to be so signed shall be deemed to be so signed and shall be admitted as evidence without proof of the signature of the person purporting to sign the certificate.

56. Copies of documents for juries.

56.— (1) In a trial on indictment of an offence under financial services legislation, the trial judge may order copies of any of the following documents to be given to the jury in such form as the judge considers appropriate:

(a) any document admitted in evidence at the trial;

(b) the transcript of the opening speeches of counsel;

(d) the transcript of the whole or any part of the evidence given at the trial;

(e) the transcript of the closing speeches of counsel;

(f) the transcript of the trial judge’s charge to the jury;

(g) any other document that, in the opinion of the trial judge, would be of assistance to the jury in its deliberations including, where appropriate, an affidavit by an accountant or other suitably qualified person summarising, in a form which is likely to be comprehended by the jury, any transactions by the accused or other persons which are relevant to the offence.

(2) If the prosecutor proposes to apply to the trial judge for an order that a document mentioned in subsection (1)(g) shall be given to the jury, the prosecutor shall give a copy of the document to the accused in advance of the trial and, on the hearing of the application, the trial judge shall take into account any representations made by or on behalf of the accused in relation to it.

(3) Where the trial judge has made an order that an affidavit by an accountant or other person mentioned in subsection (1)(g) shall be given to the jury, the accountant or, as the case may be, the other person so mentioned—

(a) shall be summoned by the prosecutor to attend at the trial as an expert witness, and

(b) may be required by the trial judge, in an appropriate case, to give evidence in regard to any relevant procedures or principles within his or her area of expertise.

57. Convicted person liable for costs and expenses of investigation and proceedings.

57.— (1) Where a person is convicted of an offence under financial services legislation, the court shall, unless it is satisfied that there are special and substantial reasons for not so doing, order the person to pay to the Bank the costs and expenses, measured by the court, incurred by the Bank in relation to the investigation, detection and prosecution of the offence, including the expenses of and incidental to an examination of any information provided to the Bank or an authorised officer.

(2) An order for costs and expenses under subsection (1) is in addition to and not instead of any fine or other penalty the court may impose.

58. Limitation of liability.

58.— (1) A person who gives information to the Bank pursuant to a requirement imposed by the Bank in the performance of its functions under financial services legislation or to an authorised officer in the exercise of his or her powers under Part 3 shall be taken not to have contravened any duty of confidentiality owed to any person as a result of so giving information.

(2) A person who is or was an auditor of, or an actuary acting for, a regulated financial service provider and who gives to the Bank—

(a) information on a matter of which he or she has, or had, become aware in his or her capacity as auditor of, or actuary acting for, the regulated financial service provider, or

(b) his or her opinion of such a matter,

shall be taken not to have contravened any duty of confidentiality owed to any person as a result of so giving information if he or she is acting in good faith and has reasonable grounds for believing that the information or opinion is relevant to any functions of the Bank.

PART 10 Extension of Part V of Central Bank Act 1997 to Debt Management Firms, etc.

59. Amendment of section 28 of Central Bank Act 1997.

59.— Section 28 of the Central Bank Act 1997 is amended—

(a) by substituting the following for the definition of “authorisation”—

“ ‘authorisation’ means an authorisation of a person to carry on a regulated business and, if an authorisation is amended in accordance with section 34, means the authorisation as amended;”,

(b) by inserting the following definitions—

“ ‘consumer’ means—

(a) an individual acting otherwise than in the course of business, or

(b) a micro enterprise within the meaning given by Commission Recommendation 2003/361/EC of 6 May 2003 ³ concerning the definition of micro, small and medium sized enterprises;

‘debt management firm’ means a person who for remuneration provides debt management services to one or more consumers, other than an excepted person;

‘debt management services’ means—

(a) giving advice about the discharge of debts (in whole or in part), including advice about budgeting in connection with the discharge of debts,

(b) negotiating with a person’s creditors for the discharge of the person’s debts (in whole or in part), or

(c) any similar activity associated with the discharge of debts;

‘excepted person’ means—

(a) any charitable organisation within the meaning of section 2(1) of the Charities Act 2009,

(b) the Money Advice and Budgeting Service,

(c) any licensed bank, building society, credit union or friendly society,

(d) a barrister, solicitor or accountant who provides debt management services only in an incidental manner and is subject to regulation by a professional body,

(e) a person who is a party to the Protocol for Independent Advice to Borrowers Availing of Long Term Mortgage Forbearance made on 2 August 2012 (as amended from time to time) and provides advice in accordance with that Protocol,

(f) the Insolvency Service of Ireland, any approved intermediary authorised under section 47 of the Personal Insolvency Act 2012 acting as such or any personal insolvency practitioner authorised under Chapter 1 of Part 5 of that Act carrying on practice as such,

(g) personal representatives (within the meaning of section 3 of the Succession Act 1965),

(h) trustees of a trust, other than a trust which is established to provide debt management services,

(i) the Bank,

(j) An Post,

(k) the National Asset Management Agency,

(l) the National Treasury Management Agency,

(m) the National Consumer Agency, and

(n) any other person constituted, or holding office, under an enactment or funded (in whole or in part) by a Minister of the Government;

‘qualifying shareholder’, in relation to another person, means a person with a direct or indirect holding in the other person—

(a) that represents 10 per cent or more of the capital of, or the voting rights in, the other person, or

(b) that makes it possible to exercise a significant influence over the management of the other person;

‘remuneration’, in relation to debt management services, means any commission or other payment, whether paid directly or indirectly, in respect of the debt management services and includes a payment made in respect of the provision of services other than debt management services as a result of which debt management services are provided otherwise than for payment;”,

“ ‘money transmission service’ means a service that involves transmitting money by any means, other than a service—

(a) that is a payment service to which the European Communities (Payment Services) Regulations 2009 (S.I. No. 383 of 2009) apply,

(b) that is provided to customers on a basis that is ancillary to any other services apart from debt management services,

(c) that is provided by—

(i) any charitable organisation within the meaning of section 2(1) of the Charities Act 2009,

(ii) the Money Advice and Budgeting Service,

(iii) any licensed bank, building society, credit union or friendly society,

(iv) a barrister, solicitor or accountant who provides money transmission services only in an incidental manner and is subject to regulation by a professional body,

(v) the Insolvency Service of Ireland, any approved intermediary authorised under section 47 of the Personal Insolvency Act 2012 acting as such or any personal insolvency practitioner authorised under Chapter 1 of Part 5 of that Act carrying on practice as such,

(vi) personal representatives (within the meaning of section 3 of the Succession Act 1965),

(vii) trustees of a trust, other than a trust which is established to provide money transmission services,

(viii) the Bank,

(ix) An Post,

(x) the National Asset Management Agency,

(xi) the National Treasury Management Agency,

(xii) the National Consumer Agency, and

(xiii) any other person constituted, or holding office, under an enactment or funded (in whole or in part) by a Minister of the Government.”,

and

(d) in the definition of “regulated business” by substituting “, a retail credit firm or a debt management firm” for “or a retail credit firm”.

60. Amendment of section 31 of Central Bank Act 1997.

60.— Section 31 of the Central Bank Act 1997 is amended in subsection (2)(b) by inserting “or any other designated enactment and or any designated statutory instrument” after “this Part”.

61. Amendment of section 31A of Central Bank Act 1997.

61.— Section 31A of the Central Bank Act 1997 is amended—

(a) by substituting “person proposing to carry on, or carrying on, regulated business” for “retail credit firm or home reversion firm”,

(b) in paragraph (a) by substituting “its memorandum and articles of association” for “the memorandum and articles of association of the firm”,

(d) in paragraphs (d) and (e) by substituting “person” for “firm”,

(e) in paragraph (f) by substituting “person’s” for “firm’s”, and

(f) in paragraph (g)—

(i) by substituting “person’s” for “firm’s”, and

(ii) by substituting “regulated business” for “authorised firms”.

62. Amendment of section 32A of Central Bank Act 1997.

62.— Section 32A of the Central Bank Act 1997 is amended—

(a) in subsection (1)—

(i) by substituting “person” for “retail credit or home reversion firm”, and

(ii) by substituting “the person” for “the firm”,

(b) in subsection (3)—

(i) by deleting “retail credit services or other”, and

(ii) by substituting “persons” for “firms”,

(d) in subsection (5) by substituting “person” for “firm” in both places, and

(e) in subsection (6)—

(i) by substituting “person” for “retail credit or home reversion firm”, and

(ii) by substituting “the person” for “the firm” in both places.

63. Amendment of section 33A of Central Bank Act 1997.

63.— Section 33A of the Central Bank Act 1997 is amended—

(a) in subsection (1) by substituting “, a person authorised to carry on a regulated business” for “an authorised retail credit firm or an authorised home reversion firm”,

(b) in subsection (1)(a)—

(i) by substituting “the person’s” for “the firm’s”, and

(ii) by substituting “persons authorised to carry on regulated business” for “retail credit firms or authorised home reversion firms”,

(i) by substituting “any relevant document” for “a credit agreement or home reversion agreement, or on any other relevant document,”, and

(ii) by substituting “the document” for “the agreement”,

(d) in paragraph (1)(d) by substituting “person” for “firm”,

(e) in subsections (2) and (3), by substituting “person” for “firm” and by substituting “persons” for “firms”, in each place, and

(f) by inserting the following subsections after subsection (3)—

“(4) The Bank may also impose on persons authorised to carry on a money transmission business a condition or requirement to raise and maintain such capital or other financial resources as may be specified by the Bank.

(5) The Bank may also impose on a debt management firm a condition or requirement to effect a policy of professional indemnity insurance—

(a) in such form,

(b) providing indemnification up to such sum and in respect of such matters, and

(c) valid for such minimum period,

as the Bank may specify from time to time.”.

64. Transitional provision for existing debt management firms.

64.— The Central Bank Act 1997 is amended by inserting the following section after section 34C—

“Transitional provision for existing debt management firms.

34D.— (1) Notwithstanding section 29, a person carrying on the business of a debt management firm immediately before the commencement of Part 10 of the Central Bank (Supervision and Enforcement) Act 2013 is taken to be authorised to carry on the business of a debt management firm until the Bank has granted or refused authorisation to the person, provided that the person applies to the Bank under section 30 for authorisation no later than 3 months after that commencement.

(2) If a person is taken to be authorised to carry on the business of a debt management firm under subsection (1), the Bank may do either or both of the following:

(a) impose on that person such conditions or requirements or both as the Bank considers appropriate relating to the proper and orderly regulation and supervision of debt management firms;

(b) direct that person not to carry on the business of a debt management firm for such period (not exceeding 3 months) as is specified in the direction.

(3) A condition or requirement imposed, or a direction given, under this section is an appealable decision for the purposes of Part VIIA of the Act of 1942.”.

65. Amendment of section 36 of Central Bank Act 1997.

65.— Section 36 of the Central Bank Act 1997 is amended by inserting “and such of the other designated enactments and designated statutory instruments as apply” after “this Part”.

66. Amendment of section 36A of Central Bank Act 1997.

66.— Section 36A(1) of the Central Bank Act 1997 is amended—

(a) in paragraph (d) by inserting “or any other designated enactment or designated statutory instrument” after “this Part” in both places,

(b) in paragraph (l)(ii) by substituting “terrorism, or” for “terrorism.”, and

“(m) the holder of the authorisation is not, in the opinion of the Bank, a fit and proper person to hold the authorisation, or

(n) any officer or qualifying shareholder of the holder of the authorisation is not, in the opinion of the Bank, a fit and proper person to be such an officer or shareholder, or

(o) it is necessary in the interests of the proper and orderly regulation and supervision of the regulated business concerned.”.

PART 11 Amendments to Part IIIC of Act of 1942

67. Amendment of section 33AO of Act of 1942.

67.— Section 33AO of the Act of 1942 is amended—

(a) in subsection (2) by deleting the second sentence, and

(b) by inserting the following subsection:

“(3) Without prejudice to the exercise of the Bank’s powers under subsection (2), an inquiry referred to in that subsection may form part of an inquiry held under this section in relation to the suspected commission of a prescribed contravention by the financial service provider.”.

68. Amendment of section 33AQ of Act of 1942.

68.— Section 33AQ of the Act of 1942 is amended—

(a) in subsection (3) by inserting the following after paragraph (c):

“(ca) suspension of its authorisation, in respect of any one or more of its activities, for such period, not exceeding 12 months, as the Bank considers appropriate;

(cb) revocation of its authorisation;”,

(b) by substituting the following for subsection (4):

“(4) For the purpose of subsection (3)(c), the prescribed amount is—

(a) if the financial service provider is a body corporate or an unincorporated body, the greater of—

(i) €10,000,000, and

(ii) an amount equal to 10 per cent of the turnover of the body for its last complete financial year before the finding is made,

(b) if the financial service provider is a natural person, €1,000,000, or

(c) if the regulations prescribe some other amount for paragraph (a) or (b), that other amount.”,

“(a) €1,000,000, or”,

and

(d) by inserting the following subsection:

“(9) In this section ‘authorisation’ means an authorisation, licence or any other permission required to carry on business as a regulated financial service provider granted by the Bank pursuant to any provision of financial services legislation, and includes registration.”.

69. Amendment of section 33AV of Act of 1942.

69.— Section 33AV of the Act of 1942 is amended by inserting the following after subsection (3):

“(3A) Subject to subsection (4), where the regulated financial service provider or person concerned in the management of the financial service provider with whom the Bank has entered into an agreement under this section fails to comply with any of the terms of the agreement, the Bank may apply to the High Court for an order under subsection (3B).

(3B) If satisfied on application to it under subsection (3A) that the regulated financial service provider or person concerned has failed to comply with any of the terms of the agreement under this section, the High Court may make an order requiring that regulated financial service provider or person to comply with those terms or that term, as the case may be.”.

70. Amendment of section 33BA of Act of 1942.

70.— Section 33BA of the Act of 1942 is amended by inserting the following after subsection (5):

“(6) Without limiting subsections (1) to (4), the Bank has the same powers that a judge of the High Court has when hearing civil proceedings that are before that Court with respect to the examination of witnesses (including witnesses who are outside the State).

(7) A person who is summoned to appear before the Bank under this section is entitled to the same rights and privileges as a witness appearing in civil proceedings before the High Court.

(8) An answer to a question put to a person in response to a requirement under subsection (4)(a) or information provided by a person in response to a requirement under subsection (4)(b) is not admissible as evidence against the person in criminal proceedings, other than proceedings for perjury, if the information was provided on oath.
(9) A person who—

(a) obstructs the Bank in the exercise of a power conferred by this Part,

(b) without reasonable excuse, fails to comply with a requirement or request made by the Bank under this Part,

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

(d) refuses to comply with a summons to attend before, or to be examined on oath by, the Bank,

commits an offence and is liable—
- (i) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months, or both, or

- (ii) on conviction on indictment, to a fine not exceeding €250,000 or imprisonment for a term not exceeding 5 years, or both.”.

71. Amendment of section 33BC of Act of 1942.

71.— The following is substituted for section 33BC of the Act of 1942:

“Publication by Bank of certain information relating to imposition of administrative sanctions.

33BC.— (1) If on the holding of an inquiry under section 33AO the Bank has found that—

(a) a regulated financial service provider is committing or has committed a prescribed contravention, or

(b) a person concerned in the management of the financial service provider is participating or has participated in such a contravention,

it shall publish, subject to subsection (4), in such form and manner as it thinks appropriate, the finding and such (if any) of the particulars specified in subsection (3) as it thinks appropriate.

(2) If the Bank has, in accordance with section 33AR, imposed—

(a) a sanction on a regulated financial service provider in respect of the commission of a prescribed contravention, or

(b) a sanction on a person concerned in the management of a financial service provider in respect of the person’s participation in the commission by the financial service provider of such a contravention,

it shall publish, subject to subsection (4), in such form and manner as it thinks appropriate, such (if any) of the particulars specified in subsection (3) as it thinks appropriate.

(3) The particulars referred to in subsections (1) and (2) are as follows:

(a) the name of the regulated financial service provider or person concerned on whom a sanction has been imposed;

(b) details of the prescribed contravention in respect of which the sanction has been imposed;

(c) details of the sanction imposed;

(d) the grounds on which the finding is based.

(4) Subsections (1) and (2) do not apply to the finding or particulars specified in subsection (3)—

(a) if publication of the finding or particulars involves the disclosure of confidential information the disclosure of which is prohibited by the Rome Treaty, the ESCB Statute or the Supervisory Directives (within the meaning of section 33AK(10)), or

(b) if the Bank determines—

(i) that the finding or particulars are of a confidential nature or relate to the commission of an offence against a law of the State, or

(ii) that publication of the finding or particulars would unfairly prejudice a person’s reputation.

(5) The Bank shall publish annually, in a summary form, information on its actions under this Part.”.

PART 12 Other Amendments to Financial Services Legislation

72. Ombudsman’s report to include information about complaints.

72.— (1) Section 57BS of the Central Bank Act 1942 is amended by inserting the following after subsection (3):

“(4) If the Financial Services Ombudsman thinks that it would be in the public interest to do so, a report under subsection (1) may, in accordance with regulations made under section 57BF, include in respect of every regulated financial service provider falling within subsection (5) the information specified in subsection (6).

(5) A regulated financial service provider falls within this subsection if, in the preceding financial year, at least 3 complaints relating to the regulated financial service provider which have been made to the Financial Services Ombudsman have been found by that Ombudsman to be substantiated or partly substantiated.

(6) The information referred to in subsection (4) is—

(a) the name of the regulated financial service provider, including any trading name (if different),

(b) where applicable, the identity of any group of which the regulated financial service provider is a member, and

(c) the number of complaints found to be substantiated or partly substantiated in respect of the regulated financial service provider in the preceding financial year.

(7) For the purposes of the law of defamation the publication of the information referred to in subsection (4) in a report under subsection (1) shall be absolutely privileged.

(8) A report under subsection (1) shall not divulge the identity of any complainant nor shall anything be published in the report which may lead to the identification of any complainant unless the complainant consents in writing.

(9) For the purposes of this section if the regulated financial service provider has appealed against the Financial Services Ombudsman’s finding that a complaint has been found to be substantiated or partly substantiated the complaint is to be taken to have been so found only when—

(a) the finding is affirmed (with or without modification) on appeal, or

(b) the appeal is withdrawn, struck out by the High Court or abandoned.

(10) For the purposes of subsection (6)(b) a person is a member of a group if it is an undertaking dealt with in group accounts (within the meaning of section 150(1) of the Companies Act 1963).”.

(2) Section 57BF of the Central Bank Act 1942 is amended in subsection (2) by inserting the following after paragraph (c):

“(ca) for the purposes of a report under section 57BS(1) make provision for—

(i) the form and manner in which the information specified in the report is given, including provision for the categorisation of the different classes of regulated financial service providers identified in the report, the different classes of financial services to which the complaints by reason of which they are so identified relate and the different descriptions of those complaints, and

(ii) the form and manner in which the report may be published and the information made available;”.

73. Third country branches.

73.— The Central Bank Act 1971 is amended—

(a) in section 7—

(i) in subsection (1) by inserting “or authorisation under section 9A” after “licence”, and

(ii) in subsection (6)(b) by inserting “or authorisation under section 9A” after “licence”,

and

(b) by inserting the following sections after section 9:

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