Central Bank Reform Act 2010

22

Pre-approval controlled functions.

22.— (1) A function is a pre-approval controlled function F13[in relation to a regulated financial service provider] if—

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

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

F13[(1A) A function is a pre-approval controlled function in relation to a holding company if it is prescribed as such in regulations made pursuant to subsection (2A).]

F14[(2) The Bank may by regulations prescribe a function that is a controlled function in relation to a regulated financial service provider as a pre‑approval controlled function in relation to a regulated financial service provider, if the function is one by which a person may exercise a significant influence on the conduct of a regulated financial service provider’s affairs.]

F13[(2A) The Bank may by regulations prescribe a function that is a controlled function in relation to a holding company as a pre-approval controlled function in relation to a holding company, if the function is one by which a person may exercise a significant influence on the conduct of a holding company’s affairs.

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

F14[(3) Without prejudice to the generality of subsections (2) and (2A), the Bank may prescribe a controlled function as a pre-approval controlled function in relation to a regulated financial service provider, pursuant to subsection (2), or in relation to a holding company, pursuant to subsection (2A), if—

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

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

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

and

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

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

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

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

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

(i) the office of director;

(ii) the office of chief executive;

(iii) the office of secretary;

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

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

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

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

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

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

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

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

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

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

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

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

Annotations

Amendments:

F13

Inserted (19.04.2023) by Central Bank (Individual Accountability Framework) Act 2023 (5/2023), s. 11(a), (b), (c), S.I. No. 176 of 2023.

F14

Substituted (19.04.2023) by Central Bank (Individual Accountability Framework) Act 2023 (5/2023), s. 11(c), (d), S.I. No. 176 of 2023.

Editorial Notes:

E22

Prospective affecting provision: power pursuant to subs. (2) exercised (1.10.2024) by Central Bank Reform Act 2010 (Sections 20 and 22 Credit Unions) (Amendment) Regulations 2023 (S.I. No. 454 of 2023), in effect as per reg. 1(2).

E23

Power pursuant to subs. (2) exercised (29.12.2023) by Central Bank Reform Act 2010 (Sections 20 and 22 Holding Companies) Regulations 2023 (S.I. No. 664 of 2023), in effect as per reg. 13.

E24

Power pursuant to subs. (2) exercised (29.12.2023) by Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2023 (S.I. No. 663 of 2023), in effect as per reg. 4.

E25

Power pursuant to subs. (2) exercised (4.04.2022) by Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2022 (S.I. No. 169 of 2022).

E26

Power pursuant to subs. (2) exercised (5.10.2020) by Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2020 (S.I. No. 410 of 2020), in effect as per reg. 4.

E27

Power pursuant to subs. (2) exercised (1.07.2018) by Central Bank Reform Act 2010 (Sections 20 and 22 - Credit Unions) (Amendment) Regulations 2018 (S.I. No. 187 of 2018), in effect as per reg. 5.

E28

Power pursuant to subs. (2) exercised (1.01.2016) by Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2015 (S.I. No. 545 of 2015), in effect as per reg. 4.

E29

Power pursuant to subs. (2) exercised (1.08.2015) by Central Bank Reform Act 2010 (Sections 20 and 22 - Credit Unions that are also authorised as Retail Intermediaries) Regulations 2015 (S.I. No. 97 of 2015).

E30

Power pursuant to subs. (2) exercised (31.12.2014) by Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2014 (S.I. No. 394 of 2014).

E31

Power pursuant to subs. (2) exercised (28.05.2013) by Central Bank Reform Act 2010 (Sections 20 and 22 - Credit Unions) Regulations 2013 (S.I. No. 171 of 2013).

E32

Power pursuant to subs. (2) exercised (1.12.2011) by Central Bank Reform Act 2010 (Sections 20 and 22) Regulations 2011 (S.I. No. 437 of 2011), in effect as per reg. 13.

E33

Power pursuant to subs. (2) exercised (30.11.2011) by Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2011 (S.I. No. 615 of 2011).