Credit Institutions (Stabilisation) Act 2010

50.

Minister’s powers to impose requirements on relevant institutions.

50.— (1) The Minister may by notice in writing impose a requirement on a relevant institution if the Minister is of the opinion that it is necessary to do so to secure the achievement of any of the purposes of this Act (including reducing the reliance of that institution or another relevant institution on State financial support or assisting in the recapitalisation of a relevant institution, or providing necessary protection for the State in the context of such a recapitalisation).

(2) The requirements that may be imposed under this section include the following—

( a) to provide such information concerning the rights and liabilities of the relevant institution as the Minister requires to permit the effective and efficient making of a subordinated liabilities order;

( b) to provide such information concerning its assets and liabilities as the Minister requires to permit the effective and efficient making of a transfer order;

( c) to make a specified application to a specified authority or person on terms that the Minister specifies;

( d) to suspend for a specified period (not exceeding 6 months) a specified activity unless otherwise authorised by the Minister;

( e) to draw up or amend one or more restructuring plans to achieve the objectives of this Act and to make changes to such restructuring plans and implement the plans (including changes) within a specified timeframe;

( f) to change the management of the relevant institution by taking specified steps to restructure its executive management responsibilities (including by terminating the employment of a specified employee), strengthen its management capacity and improve its corporate governance;

( g) to comply with some or all of the provisions on conduct, transparency and reporting requirements set out in paragraphs 24 to 52 of the Schedule to the Credit Institutions (Financial Support) Scheme 2008 ( S.I. No. 411 of 2008) and paragraph 22 of the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 F53 [ ( S.I. No. 490 of 2009 ); ]

F54 [ ( h ) to dispose of some of the assets or part of the undertaking of the relevant institution, subject to such terms and conditions as are specified by the Minister, where, in the opinion of the Minister, the disposal is required in order for the relevant institution concerned to achieve

(i) a ratio the subject of a requisition under section 23 of the Central Bank Act 1971 ,

(ii) a requirement as to the composition of the assets or liabilities of the relevant institution as specified by the Bank under section 23A of that Act. ]

F55 [ (2A) If the Minister imposes a requirement on 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 requirement that the requirement or part is made with that intention, in accordance with the CIWUD Directive. ]

(3) A relevant institution shall comply with a requirement under this section in accordance with its terms, including any specification as to the time by which, or period within which, the requirement shall be complied with.

(4) In complying with a requirement under this section, a relevant institution shall disclose in utmost good faith all matters and circumstances in relation to that institution or a subsidiary that might materially affect, or might reasonably be expected to materially affect, any decision of the Minister in the performance of his or her functions under this Act.

(5) The Minister may direct a relevant institution that any information provided by that institution or any of its subsidiaries pursuant to a requirement under this section is to be certified as accurate and complete jointly by the chief executive officer and chief financial officer of the institution.

(6) The officers and employees of a relevant institution shall comply with a requirement under this section and shall cause any subsidiary of the relevant institution to comply with the requirement (including any specification as to the time by which, or period within which, the requirement shall be complied with) to the extent that the requirement applies to the subsidiary.

(7) The holding company of a relevant institution and its officers and employees shall comply with a requirement under this section in accordance with its terms including any specification as to the time by which, or period within which, the requirement shall be complied with.

(8) The obligation to comply with a requirement under this section—

( a) does not, notwithstanding any provision of any enactment or agreement or any rule of law, require the consent, approval or concurrence of any other person, and

( b) takes priority over any other duty or obligation to any person.

(9) If a relevant institution, an officer or employee of a relevant institution or a subsidiary or holding company of a relevant institution or an officer or employee of such a subsidiary or holding company does not comply with a requirement, the Minister may apply to the Court by motion on notice on affidavit for an order compelling compliance with that requirement.

(10) The Court may, in addition to the order compelling the relevant institution to comply with a requirement under this section, make any other order or direction it considers necessary in order to ensure that the relevant institution complies with the requirement.

(11) Nothing in this section authorises the Minister to—

( a) make a requirement under this section that would otherwise require the making of a direction order, or

( b) place a relevant institution under special management.

Annotations:

Amendments:

F53

Substituted (28.10.2011) by Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011), s. 110(5) and sch. 2 part 5 item 52, S.I. No. 548 of 2011.

F54

Inserted (28.10.2011) by Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011), s. 110(5) and sch. 2 part 5 item 52, S.I. No. 548 of 2011.

F55

Inserted (28.10.2011) by Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011), s. 110(5) and sch. 2 part 5 item 53, S.I. No. 548 of 2011.