Central Bank and Financial Services Authority of Ireland Act 2003

Central Bank and Financial Services Authority of Ireland Act 2003 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2003 Central Bank and Financial Services Authority of Ireland Act 2003 Central Bank and Financial Services Authority of Ireland Act 2003 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Revised Act Acht Athbh… Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 12 of 2003 CENTRAL BANK AND FINANCIAL SERVICES AUTHORITY OF IRELAND ACT 2003 ARRANGEMENT OF SECTIONS PART 1 Preliminary Section 1. Short title and commencement. PART 2 Amendment of Central Bank Act 1942 2. Interpretation: Part 2. 3. Substitution of section 2 of the Principal Act. 4. Substitution of section 5 of the Principal Act. 5. Substitution of section 5A of the Principal Act. 6. Substitution of section 6 of the Principal Act. 7. Insertion into the Principal Act of new sections 6A to 6K. 8. Repeal of section 7 of the Principal Act (certain particular powers of the Bank). 9. Repeal of section 8 of the Principal Act (certain further powers of the Bank). 10. Amendment of section 9 of the Principal Act (capital of the Bank). 11. Amendment of section 10 of the Principal Act (seal of the Bank). 12. Repeal of section 15 of the Principal Act (dissolution of the Commission). 13. Insertion into the Principal Act of new sections 18A to 18D. 14. Amendment of section 19 of the Principal Act (appointment, tenure of office, etc., of the Governor). 15. Insertion into the Principal Act of new section 19A. 16. Substitution of section 21 of the Principal Act. 17. Substitution of section 22 of the Principal Act. 18. Insertion into the Principal Act of new section 22A. 19. Amendment of section 23 of the Principal Act (remuneration, etc., of Directors). 20. Substitution of section 24 of the Principal Act. 21. Substitution of section 25 of the Principal Act. 22. Substitution of section 28 of the Principal Act. 23. Repeal of section 30 of the Principal Act (operation of disqualification of Governor or Director). 24. Substitution of section 32 of the Principal Act. 25. Repeal of section 33 of the Principal Act. 26. Insertion into the Principal Act of new Parts IIIA and IIIB. 27. Amendment of section 35 of the Principal Act (restrictions on amount of consolidated bank notes outstanding). 28. Insertion into the Principal Act of new Part VIIA. 29. Insertion into the Principal Act of new Part VIIIA. 30. Insertion into the Principal Act of new sections 61E and 61F. 31. Substitution of the First and Second Schedules to the Principal Act. 32. Amendment of Third Schedule to the Principal Act. 33. Insertion into the Principal Act of new Schedule 5. PART 3 Repeal and Amendment of Other Enactments, etc. 34. Repeal of certain enactments. 35. Consequential amendment of other legislation. PART 4 Savings and Transitional Provisions 36. Schedule 3 (savings and transitional provisions). SCHEDULE 1 Consequential Amendments to other Acts SCHEDULE 2 Amendment of European Communities Regulations SCHEDULE 3 Savings and Transitional Provisions Acts Referred to Asset Covered Securities Act 2001 2001, No. 47 Assurance Companies Act 1909 9 Edw. 7, c. 49 Building Societies Act 1989 1989, No. 17 Central Bank Act 1942 1942, No. 22 Central Bank Acts 1942 to 1998 Central Bank Acts 1942 to 2001 Central Bank Act 1961 1961, No. 8 Central Bank Act 1964 1964, No. 3 Central Bank Act 1971 1971, No. 24 Central Bank Act 1989 1989, No. 16 Central Bank Act 1997 1997, No. 8 Central Bank Act 1998 1998, No. 2 Civil Service Regulation Acts 1956 to 1996 Companies Act 1963 1963, No. 33 Companies Act 1990 1990, No. 33 Companies Acts 1963 to 2001 Companies (Amendment) Act 1990 1990, No. 27 Competition Act 1991 1991, No. 24 Competition Act 2002 2002, No. 14 Competition Acts 1991 and 1996 Consumer Credit Act 1995 1995, No. 24 Credit Union Act 1997 1997, No. 15 Criminal Justice Act 1994 1994, No. 15 Currency Act 1927 1927, No. 32 Dormant Accounts Act 2001 2001, No. 32 Housing (Miscellaneous Provisions) Act 1992 1992, No. 18 Insurance Act 1936 1936, No. 45 Insurance Act 1953 1953, No. 7 Insurance Act 1964 1964, No. 18 Insurance (Amendment) Act 1978 1978, No. 30 Insurance (No. 2) Act 1983 1983, No. 29 Insurance Act 1989 1989, No. 3 Insurance Act 1990 1990, No. 26 Insurance Act 2000 2000, No. 42 Interpretation Act 1937 1937, No. 38 Investment Intermediaries Act 1995 1995, No. 11 Investment Limited Partnership Act 1994 1994, No. 24 Investor Compensation Act 1998 1998, No. 37 Local Government Act 2001 2001, No. 37 Minimum Notice and Terms of Employment Act 1973 1973, No. 4 Ministers and Secretaries Act 1924 1924, No. 16 Netting of Financial Contracts Act 1995 1995, No. 25 Organisation of Working Time Act 1997 1997, No. 20 Parental Leave Act 1998 1998, No. 30 Pawnbrokers Act 1964 1964, No. 31 Pensions (Increase) Act 1964 1964, No. 10 Postal and Telecommunications Services Act 1983 1983, No. 24 Public Offices Fees Act 1879 42 & 43 Vict., c. 58 Redundancy Payments Acts 1967 to 1991 Solicitors (Amendment) Act 1994 1994, No. 27 Statistics Act 1993 1993, No. 21 Stock Exchange Act 1995 1995, No. 9 Superannuation Act 1892 55 & 56 Vict., c. 40 Taxes Consolidation Act 1997 1997, No. 39 Tribunals of Inquiry (Evidence) Acts 1921 to 2002 Trustee Savings Banks Act 1989 1989, No. 21 Unfair Dismissals Act 1977 1977, No. 10 Unit Trusts Act 1990 1990, No. 37 Number 12 of 2003 CENTRAL BANK AND FINANCIAL SERVICES AUTHORITY OF IRELAND ACT 2003 AN ACT TO AMEND THE CENTRAL BANK ACT 1942 FOR THE PURPOSE OF REORGANISING AND RENAMING THE CENTRAL BANK OF IRELAND; TO PROVIDE FOR THE ESTABLISHMENT AND FUNCTIONS OF THE IRISH FINANCIAL SERVICES REGULATORY AUTHORITY AS A CONSTITUENT PART OF THAT BANK; TO AMEND CERTAIN OTHER ACTS CONSEQUENTIAL ON THE REORGANISATION; AND TO PROVIDE FOR RELATED MATTERS. [22nd April, 2003] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART 1 Preliminary Short title and commencement. 1.—(1) This Act may be cited as the Central Bank and Financial Services Authority of Ireland Act 2003. (2) This Act comes into operation on such day or days as may be fixed by an order or orders made by the Minister for Finance, either generally or with reference to any particular purpose or provision. Different days may be fixed for different purposes and different provisions. PART 2 Amendment of Central Bank Act 1942 Interpretation: 2.—In this Part, “the Principal Act” means the Central Bank Act 1942 . Substitution of section 2 of the Principal Act. 3.—The Principal Act is amended by substituting the following section for section 2: “Interpretation. 2.—(1) In this Act, unless the context otherwise requires— ‘Appeals Tribunal’ means the Irish Financial Services Appeals Tribunal established by section 57C; ‘appointed Director’ means a Director referred to in section 18B(1)(f); ‘approved stock exchange’ means a stock exchange approved under section 9 of the Stock Exchange Act 1995 ; ‘Bank’ means the Central Bank and Financial Services Authority of Ireland; ‘Board’ means the Board of Directors of the Bank; ‘Central Bank Acts’ means the Central Bank Acts 1942 to 1998 and includes any later Act that is to be construed as one with those or any of those Acts; ‘Chief Executive’ means the person holding office or acting as Chief Executive of the Regulatory Authority; ‘consolidated bank note’ has the same meaning as in the Currency Act 1927 ; ‘constituent part’, in relation to the Bank, means the Regulatory Authority, or any division, branch or office that forms part of the Bank, and includes any committee of the Board of the Bank; ‘Consumer Director’ means the person holding office or acting as Consumer Director of the Regulatory Authority; ‘credit union’ has the meaning given by the Credit Union Act 1997 ; ‘ Currency Act 1927 ’ means that Act as adapted in consequence of the Constitution; ‘designated enactments’ means the enactments specified in Part 1 of Schedule 2; ‘designated statutory instruments’ means the statutory instruments specified in Part 2 of Schedule 2; ‘Director’ means a Director of the Bank; ‘employee’, in relation to the Bank, includes the Secretary to the Bank; ‘enactment’ includes any instrument made under an enactment; ‘ESCB Statute’ means the Statute of the European System of Central Banks and of the European Central Bank as set out in Protocol (No. 3) (annexed by the Treaty on European Union done at Maastricht on February 1992) to the Rome Treaty; ‘financial futures and options exchange’ has the meaning given by section 97 of the Central Bank Act 1989 ; ‘financial services’ include financial products; ‘financial year’ means a period of 12 months ending on 31 December or, if the Minister, by order notified in Iris Oifigiúil, has prescribed a different period for the purposes of this Act, that other period; ‘function’ includes duty; ‘general fund’ means the general fund kept by the Bank under section 6G; ‘Governor’ means the person holding office as the Governor of the Bank, and includes— (a) any person appointed to act as Governor in accordance with section 22, and (b) the Director General of the Bank when carrying out responsibilities of the Governor in accordance with section 22A; ‘law’ includes the Rome Treaty and the ESCB Statute; ‘local authority’ means a local authority for the purposes of the Local Government Act 2001 ; ‘Minister’ means the Minister for Finance; ‘officer’, in relation to the Regulatory Authority, means the Chief Executive, the Consumer Director or the Registrar of Credit Unions; ‘official Director’ means a person who is a Director by virtue of being the holder of a specified office, and includes the Governor; ‘power’ includes right and privilege; ‘record’ means any record of information, however compiled, recorded or stored, and includes— (a) any book, a register and any other document containing information, and (b) any disc, tape or other article from which information is capable of being produced in any form capable of being reproduced visually or aurally; ‘the regulations’ means regulations made by the Minister under section 61A and in force under this Act; ‘Regulatory Authority’ means the Irish Financial Services Regulatory Authority established by section 33B; ‘Rome Treaty’ means the Treaty establishing the European Community done at Rome on 25 March 1957, as amended by the Treaty on European Union done at Maastricht on 7 February 1992. (2) In this Act— (a) a reference to an enactment is, unless the context otherwise requires, a reference to that enactment as amended or extended by or under any subsequent enactment (including this Act), and (b) a reference to a section is a reference to a section of this Act unless it is indicated that a reference to some other enactment is intended, and (c) a reference to a subsection, paragraph or subparagraph is a reference to the subsection, paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended. (3) A function or responsibility imposed, or a power conferred, on a person by a provision of this Act is not to be taken to be limited merely by implication from another provision, whether of this or any other Act, that imposes a function or responsibility, or confers a power, on that person.”. Substitution of section 5 of the Principal Act. 4.—The Principal Act is amended by substituting the following section for section 5: “Constitution, functions and powers of the Bank Constitution of Bank. 5.—(1) The body corporate formerly called ‘Banc Ceannais na hÉireann’ in Irish and the ‘Central Bank of Ireland’ in English is continued, but with the corporate name of ‘Banc Ceannais agus Údarás Seirbhísí Airgeadais na hÉireann’ in Irish and the ‘Central Bank and Financial Services Authority of Ireland’ in English. (2) The Bank— (a) has perpetual succession, and (b) may take legal proceedings and be proceeded against in its corporate name. (3) The Bank is required to have a seal. The seal is to be judicially noticed. (4) Except as expressly provided by this Act, the affairs and activities of the Bank are to be managed and controlled by the Board of Directors of the Bank.”. Substitution of section 5A of the Principal Act. 5.—The Principal Act is amended by substituting the following sections for section 5A (as inserted by section 4 of the Central Bank Act 1998 ): “General functions and powers of the Bank. 5A.—(1) The Bank has the following functions: (a) to carry out the efficient and effective co-ordination of— (i) the activities of the constituent parts of the Bank, and (ii) activities undertaken by any of those parts with persons who provide services to, or receive services from, the Bank, and (iii) the exchange of information among those parts and between any of those parts and any of those persons; (b) to promote the development within the State of the financial services industry (but in such a way as not to affect the objective of the Bank in contributing to the stability of the State's financial system); (c) where appropriate, to represent and co-ordinate the representation of the Bank on international financial bodies and at international meetings relating to financial or economic matters; (d) to establish and maintain, either directly or indirectly, contact with the monetary authorities established in other countries and in territories; (e) whenever it thinks fit, to provide to governments of, and financial institutions and other bodies established in, other countries and in territories advice or other assistance on matters within its expertise and, when appropriate, to co-ordinate application of the resources of its constituent parts for that purpose; (f) to provide banking services to its constituent parts; (g) to provide for the collection and study of data that deal with monetary and credit problems and to publish information about that data; (h) to provide advice and assistance to the Central Statistics Office about the collection, compilation, analysis and interpretation of statistics relating to the balance of payments, national accounts and other financial statistics and, where appropriate, to collect data for that purpose; (i) to perform such other functions as are imposed on it by or under this and any other Act or law. (2) The Bank has power to do whatever is necessary for or in connection with, or reasonably incidental to, the performance of its functions. (3) In particular, the powers of the Bank include powers of a kind that, in accordance with normal banking practice, may be exercised by a bank. (4) The Bank is required to perform its functions and exercise its powers in a manner consistent with the Rome Treaty and the ESCB Statute. (5) The Bank can perform its functions and exercise its powers both within the State and elsewhere. Specific powers of the Bank. 5B.—Without limiting section 5A, the powers of the Bank include power to do all or any of the following: (a) subject to paragraph (b), acquire, hold, dispose of or otherwise deal in all kinds of property (including real property, securities, coins, gold or silver bullion and other precious metals, and any kinds of currency or currency units); (b) acquire, hold or dispose of shares in a bank or other institution formed wholly or mainly by banks that are the principal currency authority in their respective countries, but only with the approval of the Minister; (c) enter into, carry out, assign or accept the assignment of, vary or rescind, any contract, agreement or other obligation; (d) provide loans and other kinds of financial accommodation to credit institutions and other persons on the security of such assets and on such terms and conditions as the Board considers appropriate; (e) give guarantees and make payments under them; (f) receive funds on deposit; (g) open accounts in other countries or act as agent, depository, or correspondent of any credit institution carrying on business in or outside the State; (h) re-discount exchequer notes or bills, local authority bills, bills of exchange and promissory notes on such terms and conditions as the Board considers appropriate; (i) keep registers of securities generally; (j) operate or participate in a depository of securities or other instruments; (k) keep the accounts for the clearing and settlement of securities or payment instruments; (l) become a member of, or a party to, the establishment or operation of one or more payment systems; (m) operate or participate in a system that provides a settlement service for transactions in securities or other instruments for its members; (n) enter into agreements with depositories of securities or of other instruments, and carry out transactions under the terms of those agreements so far as necessary for the settlement of transactions between members of those depositories and the members of any depository operated by the Bank; (o) transfer assets, income or liabilities to the European Central Bank where required under the ESCB Statute.”. Substitution of section 6 of the Principal Act. 6.—The Principal Act is amended by substituting the following section for section 6 (as substituted by section 5 of the Central Bank Act 1998 ): “Bank to perform functions of European System of Central Banks. 6.—(1) The Bank shall perform all functions imposed, and exercise all powers conferred, on the Bank by or under the Rome Treaty or the ESCB Statute. (2) This section is subject to section 19A. (3) Section 9 of the Ministers and Secretaries Act 1924 does not apply to the Bank.”. Insertion into the Principal Act of new sections 6A to 6K. 7.—The Principal Act is amended by inserting the following sections after section 6 (as substituted by section 6 ): “Objectives of Bank in discharging ESCB functions, etc. 6A.—(1) In discharging its functions and exercising its powers as part of the European System of Central Banks, the primary objective of the Bank is to maintain price stability. (2) The Bank also has the following objectives: (a) contributing to the stability of the financial system; (b) promoting the efficient and effective operation of payment and settlement systems; and (c) discharging such other functions and powers as are conferred or imposed on it by the Rome Treaty, the ESCB Statute or any enactment. (3) The Minister may, from time to time, request the Governor, the Board or the Regulatory Authority to consult with the Minister, in relation to their respective functions, as regards the performance by the Bank of any function of the Bank (other than one imposed on it by the Rome Treaty or the ESCB Statute). (4) The Minister may, from time to time, request the Governor to inform the Minister with respect to the pursuit of the primary objective of the Bank. (5) The Governor, or the Board, shall comply with a request made to the Governor or the Board under this section in so far as the request is consistent with the Rome Treaty, the ESCB Statute or any law of the State. (6) Without prejudice to the objective of maintaining price stability, the Bank is required to support the general economic policies of the European Union with a view to contributing to the achievement of the objectives of that Union as laid down in Article 2 of the Rome Treaty. Offices of the Bank. 6B.—Where the Board considers— (a) that it is necessary for the purpose of the due performance by the Bank of its functions, the Board may build, purchase, lease or otherwise acquire, establish, equip and maintain offices and other premises of the Bank in such places, whether in the State or elsewhere, or (b) that it is no longer necessary for that purpose, sell or let any such premises. Power of the Bank to establish divisions, etc. within the Bank. 6C.—(1) The Bank may, from time to time, establish divisions, branches or offices as part of the Bank's structure. (2) The Board is responsible for administering the staff of the Bank and its constituent parts and for administering the provision of accommodation and office and other equipment with a view to enabling the Bank and its constituent parts to perform and exercise their respective functions and powers. Staff of Bank. 6D.—(1) Subject to this section, the Board shall appoint a Secretary to the Bank and such other employees of the Bank as it considers necessary for the effective performance and exercise of the functions and powers of the Bank and each of its constituent parts. (2) The Regulatory Authority shall appoint a Secretary to that Authority. (3) Except as regards the appointment of a Secretary to the Bank and the Secretary to the Regulatory Authority— (a) the Governor has the same power to appoint employees of the Bank as the Board has under subsection (1), but that power is only exercisable in respect of responsibilities specified in section 19A(1)(a) and (b) and (2), (b) the Chief Executive has the same power to appoint employees of the Bank as the Board has under subsection (1), but that power is only exercisable with the agreement of the Regulatory Authority. (4) The Secretary to the Regulatory Authority and employees appointed under subsection (3) are taken, for the purposes of this Act, to have been appointed under subsection (1). (5) The employees of the Bank are to be employed on such conditions (including conditions as to remuneration and allowances) as the Board fixes from time to time. However, in fixing the conditions of employment of the Secretary to the Regulatory Authority and employees appointed by the Chief Executive under subsection (3), the Board shall obtain the concurrence of the Regulatory Authority or Chief Executive (as the case requires) with respect to those conditions of employment. (6) Subject to subsection (8), an appointment under this section is to be made by competition to be conducted in accordance with rules made by the Board. (7) The Board may, in relation to a particular competition, impose conditions of entry, limitations and safeguards. If the competition relates to an appointment to be made under subsection (2) or (3), the Board may impose such conditions only with the concurrence of the Regulatory Authority or the Chief Executive, as the case requires. (8) Subsection (6) does not apply to an appointment to a position if the Board, or, in relation to appointments under subsection (2) or (3), if the Regulatory Authority or Chief Executive (as the case requires), decides that appointment to the position by competition would be inappropriate. (9) The Board shall establish and operate a policy under which provision is made for employees of the Bank to be given opportunities for training and experience in various activities, and in different constituent parts, of the Bank. Assignment of employees of Bank. 6E.—The Board shall arrange for employees of the Bank to be assigned to the Regulatory Authority and to any divisions, branches or offices established under section 6C. However, any assignment of an employee to or from the Regulatory Authority shall take place only with the agreement of the Chief Executive. Bank may engage agents and act as agent for others. 6F.—The Bank may engage agents, and act as agent for other persons. Financial and administrative matters General fund of the Bank. 6G.—(1) The Bank shall continue to keep and operate the fund called the general fund. (2) The Bank shall pay into the general fund all money received by the Bank and shall pay from that fund all amounts that it is required to pay. (3) The Bank shall pay its surplus income as and when determined under this section into the Exchequer in such manner as the Minister directs and may at any time pending such determination pay into the Exchequer such sums on account of surplus income as may be agreed on by the Minister and the Bank. (4) The expenses incurred by the Bank in performing functions or exercising powers under this or any other Act or law are payable out of the general fund of the Bank, except where otherwise provided by or under this or any other Act. (5) Any claims on or liabilities to the European Central Bank are to be treated as assets or liabilities of the general fund or any other fund established by order made by the Minister for that purpose. (6) The Minister may, after consultation with the Bank, make regulations providing for the periodic determination of the Bank's surplus income and, in particular, such regulations may— (a) enable provision to be made for reserves, depreciation and other similar matters before the surplus income is determined, and (b) provide for any matter arising from the implementation of Chapters VI, VIII and IX of the ESCB Statute. (7) In exercising the powers conferred by this section, the Minister is required to have regard to the functions imposed and the powers conferred on the Bank by or under the Rome Treaty and the ESCB Statute. (8) Any regulations in force under section 23 of the Central Bank Act 1989 , immediately before the commencement of this section are taken to have been made under section 61A(1), and may be amended or revoked accordingly. Accounting and other records of Bank. 6H.—(1) The Bank shall keep all proper accounting records in respect of all of its transactions. (2) Within 6 months after the end of each financial year, the Bank shall prepare and transmit to the Comptroller and Auditor General a statement of accounts for the year concerned. The statement must be in a form approved by the Minister after consulting the Bank. A form of statement approved under this subsection remains in force until superseded by another form of statement so approved. (3) The Comptroller and Auditor General shall audit, certify and report on the statement of accounts and, as soon as practicable after completing the report, give the report and the statement to the Minister. (4) As soon as practicable after being given the report and statement of account, the Minister shall arrange for copies of those documents to be laid before each House of the Oireachtas. (5) The accounts of the Bank may be audited in accordance with Article 27 of the ESCB Statute and, for that purpose, the Bank shall provide any auditors appointed in accordance with that Article with full information, books and records. (6) The Bank shall keep its accounting records for at least 6 years. Report and returns by Bank. 6I.—(1) Within 6 months after the end of each financial year, the Bank shall prepare a report of its operations during the year and present the report to the Minister. (2) As soon as practicable after receiving such a report, the Minister is required to arrange for copies of the report to be laid before each House of the Oireachtas, together with any other reports required to be included in or attached to the report. (3) The Bank shall give to the Minister for publication in Iris Oifigiúil such periodical returns concerning the transactions of the Bank as the Minister directs from time to time. Exemption of Bank from taxes. 6J.—Profits, income and chargeable gains of the Bank are exempt from corporation tax, income tax and capital gains tax despite any contrary provisions of any enactment providing for corporation tax, income tax or capital gains tax. Provisions relating to documents of the Bank. 6K.—(1) The Bank may keep its documents wholly or partly in a non-legible form so long as they are capable of being reproduced in a legible form. (2) The Bank is not required to keep any of its documents (including accounting records) for longer than 6 years after the latest date of the period to which such documents relate. This subsection has effect despite any other enactment to the contrary. (3) In any legal proceedings, a copy or reproduction in legible form of a document, or an entry in a document, kept or formerly kept by the Bank is admissible as evidence of the entry and the matters contained in it where the document has been destroyed or is kept by the Bank in a non-legible form. (4) In this section, ‘document’ means any record of information, and includes— (a) anything on which there is writing, or (b) anything on which there are marks, figures, symbols or perforations having a meaning for persons qualified to interpret them, or (c) anything from which sounds, images or writings can be reproduced with or without the aid of anything else, or (d) a map, plan, drawing or photograph.”. Repeal of section 7 of the Principal Act (certain particular powers of the Bank). 8.—The Principal Act is amended by repealing section 7 (as substituted by section 21 of the Central Bank Act 1997 ). Repeal of section 8 of the Principal Act (certain further powers of the Bank). 9.—The Principal Act is amended by repealing section 8. Amendment of section 9 of the Principal Act (capital of the Bank). 10.—Section 9 of the Principal Act is amended by deleting subsection (4). Amendment of section 10 of the Principal Act (seal of the Bank). 11.—Section 10 of the Principal Act is amended— (a) by substituting the following subsection for subsection (1): “(1) The seal of the Bank is to be kept in such custody as the Board directs and may be used only as authorised— (a) if the seal is to be used in relation to a function or power of the Bank that is to be performed or exercised by the Board, by the Board, or (b) if the seal is to be used in relation to a function or power of the Bank that is to be performed or exercised by the Governor, by the Governor, or (c) if the seal is to be used in relation to a function or power of the Bank that is to be performed or exercised by the Regulatory Authority, by that Authority.”, and (b) by deleting subsections (4) and (5). Repeal of section 15 of the Principal Act (dissolution of the Commission). 12.—The Principal Act is amended by repealing section 15. Insertion into the Principal Act of new sections 18A to 18D. 13.—The Principal Act is amended by inserting in Part III the following sections before section 19: “Interpretation: Part III. 18A.—In this Part, unless the context otherwise requires— ‘credit institution’ means an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credit on its own account but does not include the European Central Bank; ‘financial institution’ means an undertaking, other than a credit institution, that provides one or more of the kinds of financial services that are set out in the Schedule to the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 ( S.I. No. 395 of 1992 ); ‘insurance undertaking’ has the meaning given by the Insurance Act 1989 . Bank to have Board of Directors. 18B.—(1) The Board of Directors of the Bank comprises the following persons: (a) the Governor; (b) the Director General of the Bank; (c) the Secretary General of the Department of Finance; (d) the Chairperson of the Regulatory Authority; (e) the Chief Executive of that Authority; (f) 7 other Directors appointed by the Minister. (2) Of the other Directors, 4 are to be members of the Regulatory Authority. (3) A person is not eligible for appointment as a Director if the person— (a) is a member of either House of the Oireachtas or is, with the person's consent, nominated as a candidate for election as such a member or is nominated as a member of Seanad Éireann, or (b) is a member of the European Parliament or is, with the person's consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of that Parliament, or (c) is a member of a local authority or is, with the person's consent, nominated as a candidate for election as such a member. (4) The performance and exercise of the functions and powers of the Board are not affected by there being one or more vacancies in the membership of the Board. (5) The Governor is the Chairperson of the Board. Acts, etc. of the Board to be acts, etc. of the Bank. 18C.—Any act, matter or thing done in the name of, or on behalf of, the Bank by the Board in the performance or exercise of the Board's functions or powers is to be taken to have been done by the Bank. Functions and powers of the Board. 18D.—(1) The Board has the following functions: (a) to perform the functions of the Bank under sections 6B to 6K; (b) to perform such other functions as are expressly imposed on it by this or under any other Act or law. (2) The Board has power to do whatever is necessary for or in connection with, or reasonably incidental to, the performance of its functions. (3) Without limiting subsection (2), the Board may do all or any of the following: (a) establish committees of the Board consisting of one or more members of the Board either solely or together with one or more officers of the Bank; (b) determine the procedure and define the functions and powers of any such committees; (c) delegate to a specified person or body (including a committee established under paragraph (a)) the performance or exercise of any one or more of the functions and powers of the Bank or of the Board; (d) impose conditions, limitations, or restrictions on the performance or exercise by any such person or body of functions or powers delegated under this subsection; (e) provide in appropriate cases for the review by the Board of decisions taken or things done by any such person or body in the performance or exercise of any function or power delegated under this subsection. (4) Subsection (3) does not authorise the Board to delegate to a committee, or to a person or body, any function of the Bank that must, by a provision of this Act, be performed by either the Governor or the Regulatory Authority. (5) If the Board establishes a committee of the Board called the ‘Monetary Committee of the Board’ (or a similar name) and the committee consists only of those members of the Board who are not members of the Regulatory Authority, the Governor is taken to have complied with section 19A(3) if the Governor provides the committee with information about the carrying out by the Governor of the responsibilities referred to in section 19A(2).”. Amendment of section 19 of the Principal Act (appointment, tenure of office, etc., of the Governor). 14.—Section 19 of the Principal Act is amended by substituting the following subsections for subsections (2) to (5): “(2) A person is not eligible for appointment as Governor if the person— (a) is a member of either House of the Oireachtas or is, with the person's consent, nominated as a candidate for election as such a member or is nominated as a member of Seanad Éireann, or (b) is a member of the European Parliament or is, with the person's consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of that Parliament, or (c) is a member of a local authority or is, with the person's consent, nominated as a candidate for election as such a member. (3) A person appointed as Governor holds office for 7 years from the date of the person's appointment, unless the person previously ceases to hold that office as provided by this Part. (4) The President, on the advice of the Government, may appoint a person holding office as Governor for a further period of 7 years to take effect at the end of the person's current period of appointment. This subsection applies whether the person was appointed under subsection (1) or this subsection. (5) A person holding office as Governor is disqualified from being a director of a credit institution, financial institution or insurance undertaking. (6) If a person who is appointed to the office of Governor is a director of a credit institution, financial institution or insurance undertaking, the person ceases to hold that office at the end of 10 days after the date of the appointment unless, within that period, the person ceases to be such a director. (7) A person ceases to hold office as Governor if the person— (a) dies, or (b) completes a term of office and is not re-appointed, or (c) resigns by notice in writing given to the President, or (d) is, with the person's consent, nominated as a candidate for election as a member of either House of the Oireachtas or is nominated as a member of Seanad Éireann, or (e) is, with the person's consent, nominated as a candidate for election as a member of the European Parliament or to fill a vacancy in the membership of that Parliament, or (f) is, with the person's consent, nominated as a candidate for election as a member of a local authority, or (g) is adjudged bankrupt (either in the State or elsewhere) or enters into a composition with the person's creditors, or (h) becomes physically or mentally incapable of performing the duties of Governor, or (i) is convicted of an offence (either in the State or elsewhere) and sentenced to serve a term of imprisonment for the offence, or (j) ceases to hold the office because of subsection (6), or (k) becomes disqualified from holding the office under section 20, or (l) is removed from the office under section 21.”. Insertion into the Principal Act of new section 19A. 15.—The Principal Act is amended by inserting the following section after section 19: “Responsibilities and powers of the Governor. 19A.—(1) The Governor is responsible for— (a) holding and managing by the Bank of the foreign reserves of the State, and (b) promoting the efficient and effective operation of payment and settlement systems, and (c) performing such other functions as are imposed on the Governor by or under this Act or by or under another law. (2) The Governor has sole responsibility for the performance of the functions imposed, and the exercise of powers conferred, on the Bank by or under the Rome Treaty or the ESCB Statute. (3) Subject to the requirements of the Rome Treaty and the ESCB Statute, the Governor shall provide the Board with information about, and may discuss with the Board, the performance by the Governor of the functions and powers referred to in subsections (1) and (2). (4) The Governor has power to do whatever is necessary for or in connection with, or reasonably incidental to, carrying out the Governor's responsibilities. (5) In carrying out or exercising the Governor's responsibilities or powers, the Governor shall, as far as reasonably practicable, ensure that the resources of the Bank allocated for carrying out those responsibilities or exercising powers are used effectively, efficiently and economically. (6) Any act, matter or thing done in the name of, or on behalf of, the Bank by the Governor in the performance or exercise of the Governor's responsibilities or powers is to be taken to have been done by the Bank.”. Substitution of section 21 of the Principal Act. 16.—The Principal Act is amended by substituting the following section for section 21: “Removal of Governor from office. 21.—(1) The President may, on the advice of the Government, remove the Governor from office on the ground that the Governor has, because of ill-health, become permanently incapacitated from carrying out the responsibilities of Governor. (2) The President may, on the advice of the Government, remove the Governor from office if the other members of the Board have passed a unanimous resolution requesting the President to remove the Governor from office on one or more specified grounds of serious misconduct. (3) A decision of the President removing a Governor from office under this section takes immediate effect from the date on which the decision is notified to the Governor or the date on which the decision is first published, whichever date first occurs. (4) A decision of the President removing a Governor from office under this section can be referred to the European Court of Justice in such manner and on grounds consistent with Article 14.2 of the ESCB Statute.”. Substitution of section 22 of the Principal Act. 17.—The Principal Act is amended by substituting the following section for section 22: “Acting Governor. 22.—(1) The Governor may appoint one of the other Directors to act as Governor to carry out the designated responsibilities of the Governor's office whenever the Governor is temporarily unable to carry out those responsibilities, whether because of absence or ill-health or for any other reason. (2) If the Governor fails to make an appointment in the circumstances specified in subsection (1), the other Directors may appoint one of them to carry out the designated responsibilities. (3) Whenever the office of Governor becomes vacant, the Board may appoint any one of the Directors to act as Governor to carry out the designated responsibilities of that office during such vacancy but no Director so appointed shall so act after the expiration of 3 months from the occurrence of the vacancy which occasioned his or her appointment. (4) A Director appointed under this section, while acting as Governor has the designated responsibilities of the office of Governor and also the powers relating to the carrying out of those responsibilities. (5) A Director appointed under this section to act as Governor is entitled to be paid such remuneration (including travelling and subsistence allowances) as the Board determines from time to time. (6) A Director appointed under this section to act as Governor shall not, by reason of such appointment, vacate office as a Director. (7) This section does not apply to responsibilities of the Governor that are required, by virtue of section 22A, to be carried out by the Director General of the Bank in any of the circumstances specified in that section. (8) In this section, ‘designated responsibilities’, in relation to the office of Governor, means those responsibilities of the Governor other than those specified in section 19A(1)(a) and (b) and (2).”. Insertion into the Principal Act of new section 22A. 18.—The Principal Act is amended by inserting the following section after section 22: “Director General of the Bank to carry out certain responsibilities of the Governor. 22A.—The Director General of the Bank is required to carry out the responsibilities of the Governor under section 19A (other than under subsection (1)(c)) and paragraph 3(3) of Schedule 1 whenever— (a) the Governor is, because of absence or ill-health or for any other reason, unable to carry out those responsibilities, or (b) the office of Governor is vacant.”. Amendment of section 23 of the Principal Act (remuneration, etc., of Directors). 19.—Section 23 of the Principal Act is amended by deleting subsections (1) and (3) and by inserting in subsection (4) the words “, other than the Governor,” after the word “Director”. Substitution of section 24 of the Principal Act. 20.—The Principal Act is amended by substituting the following section for section 24 (as substituted by section 14 of the Central Bank Act 1989 ): “Tenure of office of Directors. 24.—(1) A person who is an official Director holds office as such for as long as the person holds the office by virtue of which the person is such a Director. (2) An appointed Director holds office as such for a period of 5 years unless the Director previously ceases to hold that office as provided by a provision of this Part. (3) Subsection (2) applies only to a Director whose appointment takes effect on or after the commencement of section 20 of the Central Bank and Financial Services Authority of Ireland Act 2003.”. Substitution of section 25 of the Principal Act. 21.—The Principal Act is amended by substituting the following section for section 25: “Vacation of office of Director. 25.—(1) A person ceases to be an official Director if the person ceases to hold the office by virtue of which the person is such a Director. (2) A person who is an appointed Director by virtue of being a member of the Regulatory Authority ceases to be an appointed Director if the person— (a) dies, or (b) completes a term of office and is not re-appointed, or (c) resigns by notice in writing given to the Governor, or (d) ceases to be a member of that Authority, or (e) is removed from office under subsection (4). (3) A person who is an appointed Director otherwise than by virtue of being a member of the Regulatory Authority ceases to be an appointed Director if the person— (a) dies, or (b) completes a term of office and is not re-appointed, or (c) resigns the office by notice in writing addressed to the Governor, or (d) has, without the permission of the other Directors, been absent from meetings of the Board for a consecutive period of 6 months, or (e) is, with the person's consent, nominated as a candidate for election as a member of either House of the Oireachtas or is nominated as a member of Seanad Éireann, or (f) is, with the person's consent, nominated as a candidate for election as a member of the European Parliament or to fill a vacancy in the membership of that Parliament, or (g) is, with the person's consent, nominated as a candidate for election as a member of a local authority, or (h) is adjudged bankrupt (either in the State or elsewhere) or enters into a composition with the person's creditors, or (i) becomes physically or mentally incapable of performing the duties of a Director, or (j) is convicted of an offence (either in the State or elsewhere) and sentenced to serve a term of imprisonment for the offence, or (k) is removed from office under subsection (4). (4) The Minister may remove an appointed Director from office— (a) for proven misconduct or incompetence, or (b) in order to enable the Board to function effectively.”. Substitution of section 28 of the Principal Act. 22.—The Principal Act is amended by substituting the following section for section 28: “Filling of vacancy in office of Director. 28.—As soon as practicable after an appointed Director ceases to hold office, the Minister shall appoint a person to fill the vacancy.”. Repeal of section 30 of the Principal Act (operation of disqualification of Governor or Director). 23.—The Principal Act is amended by repealing section 30. Substitution of section 32 of the Principal Act. 24.—The Principal Act is amended by substituting the following section for section 32: “Meetings and procedure of the Board. 32.—Schedule 1 has effect with respect to meetings and procedure of the Board.”. Repeal of section 33 of the Principal Act. 25.—The Principal Act is amended by repealing section 33. Insertion into the Principal Act of new Parts IIIA and IIIB. 26.—The Principal Act is amended by inserting the following Parts before Part IV: “PART IIIA Irish Financial Services Regulatory Authority Chapter I Constitution, functions and powers of Regulatory Authority Interpretation: Part IIIB and Schedule 3. 33A.—In this Part and Schedule 3— ‘Chairperson’ means Chairperson of the Regulatory Authority; ‘member’ means a member of the Regulatory Authority; ‘other members of the Regulatory Authority’— (a) when used in a provision relating to the Chief Executive — means a majority of the members of the Regulatory Authority other than the Chief Executive or a person acting as such, and (b) when used in a provision relating to the Consumer Director — means a majority of the members of the Regulatory Authority other than the Consumer Director or a person acting as such. Establishment of Regulatory Authority. 33B.—(1) There is established by this section a body called ‘Údarás Rialála Seirbhísí Airgeadais na hÉireann’ or in the English language the ‘Irish Financial Services Regulatory Authority’. (2) The Regulatory Authority is a constituent part of the Bank. (3) The Regulatory Authority is separate from its members and continues in existence despite any vacancy or change in its membership. Functions and powers of Regulatory Authority. 33C.—(1) The Regulatory Authority has the following functions: (a) to perform the functions the Bank has under or in respect of the enactments and statutory instruments specified in Schedule 2; (b) in respect of functions of the Bank under sections 18 and 23 of the Central Bank Act 1971 — (i) in so far as relates to the performance of functions imposed on the Regulatory Authority by this section, to perform those functions of the Bank, and (ii) in any other case and by agreement with the Governor, to contribute to the performance of those functions of the Bank; (c) whenever requested to do so, to provide the Governor and the Board with advice, information and assistance with respect to the performance of their respective functions under the Central Bank Acts; (d) to perform such other functions as are expressly imposed on it by this or under any other Act or law. (2) (a) The Minister may, after consulting the Bank, by order notified in Iris Oifigiúil, add— (i) to Part 1 of Schedule 2 any specified enactment, or (ii) to Part 2 of that Schedule any specified statutory instrument, under or in respect of which functions of the Bank are to be performed by the Regulatory Authority. (b) An order under paragraph (a) may be limited to specified entities, or categories of entities, to which the enactments or statutory instruments apply. (3) In performing its functions and exercising its powers, the Regulatory Authority is required to promote the best interests of users of financial services in a way that is consistent with— (a) the orderly and proper functioning of financial markets, and (b) the orderly and prudent supervision of providers of those services. (4) Without limiting subsection (3), the Regulatory Authority shall take such action as it considers appropriate to increase awareness among members of the public of available financial services and the cost to consumers, risks and benefits associated with the provision of those services. None of the following is liable to pay damages arising out of a failure to comply with this subsection: (a) the Bank; (b) a member of the Board; (c) an employee of the Bank; (d) a member of the Regulatory Authority; (e) the Registrar of Credit Unions; (f) an agent of the Bank or of its constituent parts. (5) So far as consistent with Part II and this Part, the Regulatory Authority has power to do whatever is necessary for or in connection with, or reasonably incidental to, the performance of its functions. (6) The Regulatory Authority may, in relation to the functions and powers of the Bank that the Authority is to perform or may exercise, bring and defend legal proceedings, and do any other thing, in the name of the Bank. This subsection does not apply to prosecutions for offences arising under the designated enactments and designated statutory instruments or proceedings for the recovery of amounts of levies or fees prescribed under section 33J or 33K. (7) The Regulatory Authority is required to perform its functions and exercise its powers in a way that is consistent with the Rome Treaty and the ESCB Statute. (8) In performing its functions and exercising its powers, the Regulatory Authority has a duty to act in a way that is consistent with the performance by the Governor and the Board of their respective functions in relation to the Bank. For the purpose of verifying compliance with that duty, the Regulatory Authority shall provide the Governor or the Board with such information as the Governor or the Board reasonably require or as it considers appropriate. (9) If any matter relating to the financial stability of the State's financial system arises in connection with the performance or exercise by the Regulatory Authority of its functions or powers, that Authority shall consult the Governor on that matter. Where the Regulatory Authority considers it prudent in the circumstances it may send a report to the Minister on any matter to which this subsection relates. The Regulatory Authority may otherwise act on that matter only with the agreement of the Governor. For the purpose of this subsection, ‘matter’ includes (but is not limited to) the issue, revocation and suspension of a licence or other authority. (10) The Regulatory Authority can perform its functions and exercise its powers both within the State and elsewhere. (11) If— (a) the performance of a function or the exercise of a power by the Bank is dependent on its opinion, belief or state of mind in relation to a matter, and (b) the function or power is, by this section, to be performed by the Regulatory Authority, that Authority is required to perform the function or exercise the power in relation to the matter on the basis of its own opinion, belief or state of mind. (12) Any act, matter or thing done in the name of, or on behalf of, the Bank by the Regulatory Authority in the performance or exercise of that Authority's functions or powers is taken to have been done by the Bank. (13) The fact that the Regulatory Authority is required to perform functions, and is authorised to exercise powers, of the Bank by virtue of this section does not affect the status of the Bank as a competent authority for the purposes of any European Union directive or regulation under which the Bank is such an authority. Regulatory Authority to comply with certain guidelines. 33D.—(1) Either the Governor or the Board may, with respect to the functions of the Governor or the Board, issue to the Regulatory Authority guidelines as to the policies and principles that that Authority is required to implement in performing functions, or exercising powers, of the Bank. (2) The Regulatory Authority is required to comply with guidelines issued to it under this section. (3) Guidelines issued by the Governor or the Board under this section shall be in writing and the Governor or the Board, as the case may be, shall cause them to be published in Iris Oifigiúil as soon as practicable after they are issued. Membership of Regulatory Authority. 33E.—(1) The Regulatory Authority comprises no fewer than 8 and no more than 10 members, of whom— (a) one is the Chief Executive, and (b) one is the Consumer Director, and (c) no fewer than 6 and no more than 8 are persons appointed by the Minister for Finance after consulting the Minister for Enterprise, Trade and Employment. (2) Instead of appointing a person under subsection (1)(c), the Minister may designate the holder of a specified office as an official member of the Regulatory Authority. Whoever is for the time being the holder of such an office is an official member of that Authority. (3) A person is not eligible for appointment under subsection (1)(c) if the person— (a) is a member of either House of the Oireachtas or is, with the person's consent, nominated as a candidate for election as such a member or is nominated as a member of Seanad Éireann, or (b) is a member of the European Parliament or is, with the person's consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of that Parliament, or (c) is a member of a local authority or is, with the person's consent, nominated as a candidate for election as such a member. (4) Schedule 3 has effect with respect to the Regulatory Authority and its members. Appointment of Chief Executive of the Regulatory Authority. 33F.—(1) The other members of the Regulatory Authority shall appoint a person as the Chief Executive of that Authority. Other than the appointment of the first Chief Executive (which is provided for by paragraph 4 of Schedule 3 to the Central Bank and Financial Services Authority of Ireland Act 2003), the appointment of a Chief Executive under this section shall only be made after the holding of a public open competition for that position. (2) A person appointed as Chief Executive holds office for such period, not exceeding 5 years, as is specified in the document of appointment, unless the person previously ceases to hold that office as provided by this section. (3) The other members of the Regulatory Authority may appoint a person holding office as the Chief Executive for a further period, not exceeding 5 years, to take effect at the end of the person's current period of appointment. This subsection applies whether the person was appointed under subsection (1) or this subsection. (4) An appointment under this section does not take effect until the Minister approves it. (5) A person is not eligible for appointment as Chief Executive if the person— (a) is a member of either House of the Oireachtas or is, with the person's consent, nominated as a candidate for election as such a member or is nominated as a member of Seanad Éireann, or (b) is a member of the European Parliament or is, with the person's consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of that Parliament, or (c) is a member of a local authority or is, with the person's consent, nominated as a candidate for election as such a member. (6) A person appointed under this section holds office on such conditions of employment as are specified in the person's document of appointment or are later agreed between the person and the other members of the Regulatory Authority. (7) The Chief Executive may engage in other remunerative employment only with the consent of the other members of the Regulatory Authority. (8) The Chief Executive is subject to the control of the other members of the Regulatory Authority and, except as regards voting at meetings of that Authority, is required to comply with any lawful directions given by those members with respect to the carrying out of the Chief Executive's responsibilities. (9) A person ceases to hold office as Chief Executive if the person— (a) dies, or (b) completes a term of office and is not re-appointed, or (c) resigns the office by notice in writing addressed to the Chairperson, or (d) is, with the person's consent, nominated as a candidate for election as a member of either House of the Oireachtas or is nominated as a member of Seanad Éireann, or (e) is, with the person's consent, nominated as a candidate for election as a member of the European Parliament or to fill a vacancy in the membership of that Parliament, or (f) is, with the person's consent, nominated as a candidate for election as a member of a local authority, or (g) is adjudged bankrupt (either in the State or elsewhere) or enters into a composition with the person's creditors, or (h) becomes physically or mentally incapable of performing the duties of Chief Executive, or (i) is convicted of an offence (either in the State or elsewhere) and sentenced to serve a term of imprisonment for the offence, or (j) is removed from office under subsection (10). (10) The other members of the Regulatory Authority may remove or suspend the Chief Executive from office, but only for reasons notified in writing to the Chief Executive. Appointment of acting Chief Executive in certain cases. 33G.—( …