Credit Institutions (Stabilisation) Act 2010

13.

Proposed special management orders.

13.— (1) Subject to subsections (2), (3) and (5), the Minister may make a proposed special management order under this section where the Minister decides that a person who has, in the Minister’s opinion, the requisite knowledge, expertise and experience of the financial services sector to be the special manager of a relevant institution should be appointed as the special manager of that relevant institution.

(2) The Minister may make a proposed special management order only if the Minister, having consulted with the Governor, is of the opinion that making a special management order in the terms of the proposed special management order is necessary to secure the achievement of a purpose of this Act specified in the F17 [ proposed special management order ].

(3) If the Minister makes a proposed special management order in relation to a relevant institution and the intention of it or part of it is the preservation or restoration of the financial position of a credit institution, the Minister shall declare in the proposed special management order that the proposed special management order or part is made with that intention, in accordance with the CIWUD Directive.

(4) Unless the relevant institution concerned consents to the making of a special management order in the terms of the proposed special management order, or exceptional circumstances (within the meaning of subsection (5) ) exist, the Minister shall also, before making a special management order—

( a) deliver a written notice to the relevant institution setting out the terms of the proposed special management order, accompanied by a summary of the reasons why the Minister is of the opinion that a special management order in the terms of the proposed special management order is necessary,

( b) afford the relevant institution 48 hours, or a shorter period on which the Minister and the relevant institution agree, in which to make written submissions to the Minister, and

( c) consider any submissions made under paragraph (b).

(5) Exceptional circumstances for the purposes of subsection (4) exist where—

( a) there is an imminent threat to the financial stability of the relevant institution concerned and the Minister is of the opinion that compliance with that subsection would result in significant damage to the financial stability of that relevant institution,

( b) there is an imminent threat to the stability of the financial system in the State and the Minister is of the opinion that compliance with subsection (4) would result in significant damage to the stability of that financial system, or

( c) the Minister has reasonable grounds for believing that confidentiality with regard to the proposed special management order, or the possibility of the making of a special management order, would not be maintained and that the breach of such confidentiality would have significant adverse consequences.

(6) The proposed special management order shall—

( a) name the person to be appointed as the special manager, or

( b) name a firm all of whose members shall be taken to be appointed as special managers.

(7) The proposed special management order shall include the proposed terms of appointment of the special manager, and may—

( a) specify particular matters that are to be reserved for decision or approval by the Minister, or

( b) direct the special manager (subject to regulatory requirements) to take particular action or refrain from taking particular action.