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16 1989

CENTRAL BANK ACT, 1989

Chapter VII

Supervision of Certain Financial Institutions for the purposes of an International Financial Services Centre

Definitions ( Chapter VII ).

89. —In this Chapter—

the Area” means the Customs House Docks Area, as defined in section 41 of the Finance Act, 1986 ;

enactment” includes any act of the European Communities which has the force of law in the State;

financial institution” has the meaning assigned to it by section 90 ;

self-regulatory body” has the meaning assigned to it in section 94 (1).

Application ( Chapter VII ).

90. —This Chapter shall apply to every company to which a certificate has been given by the Minister under section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 (in this Chapter referred to as a “financial institution”) other than every financial institution which is the holder of a licence under section 9 of the Act of 1971 or a moneybroker for the purposes of Chapter IX or is subject to supervision or is capable of being inspected by virtue of—

(a) the Building Societies Act, 1976 , and every other Act which is to be construed together with that Act as one Act,

(b) the Friendly Societies Act, 1896, and every other Act which is to be construed together with that Act as one Act,

(c) the Assurance Companies Act, 1909, and every other Act which is to be construed together with that Act as one Act, or

(d) any other enactment which for the time being stands specified by order under section 91 .

Orders ( Chapter VII ).

91. —(1) Where the Minister is of the opinion, after consulting the Bank and such other Ministers (if any) as he considers it appropriate to consult with, that there are adequate supervisory and inspection provisions contained in any enactment relating to a financial institution or a class or type of institution to which, but for an order under this section for the purposes of section 90 (d), the provisions of this Chapter would apply, then the Minister may by order specify the enactment concerned and, where necessary in the context of that enactment, the institution or class or type of institution to which the order relates and, accordingly, those provisions shall not apply to an institution to which the order relates.

(2) The Minister may, after consulting the Bank and such other Ministers (if any) as he considers it appropriate to consult with, by order revoke an order under subsection (1).

Supervision, etc. of financial institutions by Bank.

92. —(1) Every financial institution to which this Chapter applies shall comply with such supervisory and reporting requirements or conditions relating to its business which the Bank considers prudent to impose on it from time to time for the purposes and in the interest of the proper and orderly regulation of the institution or a group of institutions (including the institution) or for the purpose of the development of the Area as an International Financial Services Centre.

(2) The imposition of prudential, supervisory and reporting requirements and conditions by the Central Bank shall not constitute a warranty as to the solvency of entities covered by this section or entities forming part of groups covered by this section and the Bank shall not be liable in respect of any loss incurred through the insolvency or default of any of those parties.

Application of sections 17 and 18 of Act of 1971.

93. —Without prejudice to the provisions of section 92 , the provisions of section 17 (which relates to books and records of holders of licences) and section 18 (which relates to furnishing of information to the Bank) of the Act of 1971 (as amended by this Part) shall apply to every financial institution to which this Chapter relates and to every associated enterprise (within the meaning of those sections) of such an institution as if each such institution were the holder of a licence for the purposes of the Central Bank Acts, 1942 to 1989.

Establishment of self-regulatory bodies.

94. —(1) The Bank may, in writing and after consulting the Minister, direct any group of financial institutions to which this Chapter applies and which are specified in the direction to establish a body (in this Chapter referred to as “a self-regulatory body”) of such legal character as the Bank may specify to regulate the business conduct, or any aspect of the business conduct as may be specified, of the financial institutions to which the direction relates.

(2) The rules (including management and future membership) of a self-regulatory body shall be submitted jointly by the financial institutions concerned to the Bank for its approval.

(3) The approval of the rules of a self-regulatory body under this section is without prejudice to the power of the Bank to impose requirements or conditions by virtue of section 92 , or further direction under subsection (1), on any of the financial institutions concerned.

(4) Where a self-regulatory body has been established for the purposes of this section, the provisions of sections 92 , 93 , 95 , and 96 shall apply to the body as if it were, and in the same manner as they apply to, a financial institution to which this Chapter applies.

(5) Nothing in this section shall be construed as preventing any financial institution from being a member of any organisation which supervises or controls business conduct otherwise than by virtue of this section.

Power of Court to prohibit failure to comply with requirement or condition under Chapter VII .

95. —(1) Where, on an application made in a summary manner by the Bank, the Court is of the opinion that there has occurred or is occurring a failure by a financial institution or institutions to comply with a requirement or condition imposed by virtue of section 92 or with a direction under section 94 , the Court may, by order, prohibit the continuance of the failure by the institution or institutions concerned.

(2) The Court when considering the matter may make such interim or interlocutory order as it considers appropriate.

(3) 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 under this section may be heard otherwise than in public.

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

Report of non-compliance to Minister.

96. —Where the Bank—

(a) is satisfied that a financial institution to which this Chapter applies is not complying with any obligation imposed on it by or under this Chapter (including any rule of a self-regulatory body of which the institution is a member), and

(b) is of the opinion that the nature of the non-compliance is such that it requires notification to the Minister,

then the Bank shall notify the Minister of that non-compliance.