Investor Compensation Act, 1998
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Amendment of section 26 of Act of 1995. |
59.—Section 26 (as amended by the Central Bank Act, 1997 ) of the Act of 1995 is hereby amended— | |
(a) in subsection (1)— | ||
(i) by the substitution for “or engaging in all or any of these services and, in the course of engaging in any of these services transmits orders only to all or any of the following, namely—” of “or engaging in all or any of these services or providing investment advice in relation to these services and, in the course of engaging in any of these services transmits orders only to all or any of the following product producers, namely—” and | ||
(ii) in subparagraph (i) by the substitution for “not being a restricted activity investment product intermediary, or a certified person,” of “not being a restricted activity investment product intermediary or a certified person,”, | ||
and the subsection as so amended is set out in the Table to this paragraph. | ||
TABLE | ||
(1) In this Act “restricted activity investment product intermediary” means a person whose only investment business service is receiving and transmitting orders in units or shares in undertakings for collective investments in transferable securities within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 ), and any subsequent amendments thereto, units in a unit trust, other collective scheme instruments, or receiving and transmitting— | ||
(a) orders in shares in a company which are listed on a stock exchange or bonds so listed, or | ||
(b) orders in prize bonds, or | ||
(c) acting as a deposit agent or as a deposit broker, | ||
or engaging in all or any of these services or providing investment advice in relation to these services and, in the course of engaging in any of these services transmits orders only to all or any of the following product producers, namely— | ||
(i) investment firms authorised in accordance with Directive 93/22/EEC of 10 May, 1993(1) by a competent authority of another Member State, or to an authorised investment business firm, not being a restricted activity investment product intermediary or a certified person, or to a member firm, within the meaning of the Stock Exchange Act, 1995 , in the State; | ||
(ii) credit institutions authorised in accordance with Directives 77/780/EEC of 12 December, 1977(2) and 89/646/EEC of 15 December, 1989(3) ; | ||
(iii) to such other branches of investment business firms or credit institutions authorised in a third country as the supervisory authority may approve from time to time; | ||
(iv) collective investment undertakings authorised under the law of a Member State of the European Union to market units in collective investments to the public, and to the managers of such undertakings; | ||
(v) investment companies with fixed capital as defined in Article 15(4) of Council Directive 77/91/EEC of 13 December, 1976(4) the securities of which are listed or dealt in on a regulated market in a Member State; | ||
(vi) the Prize Bond Company Ltd. or any successor to it as operator of the Prize Bond scheme, | ||
and which does not hold clients' funds or securities, so that in its dealings with clients it does not become a debtor to its clients, but this shall not prevent it from— | ||
(I) taking non-negotiable cheques or similar instruments made out to one of the undertakings mentioned at subparagraphs (i) to (vi) of this subsection, for the purposes of the receipt and transmission of orders, or | ||
(II) when acting as a deposit agent, taking cash from a client for the client's account with a credit institution. | ||
(b) in subsection (2) by the substitution for “A restricted activity investment product intermediary shall, while it remains a restricted activity investment product intermediary, and notwithstanding section 10 of this Act, be deemed to be an authorised investment business firm for the purposes of this Act,” of “A person who is a restricted activity investment product intermediary on a day specified by the Minister shall, while it remains a restricted activity investment product intermediary, and notwithstanding section 10 of this Act, be deemed to be an authorised investment business firm for the purposes of this Act,”, and the subsection as so amended is set out in the Table to this paragraph. | ||
TABLE | ||
(2) A person who is a restricted activity investment product intermediary on a day specified by the Minister shall, while it remains a restricted activity investment product intermediary, and notwithstanding section 10 of this Act, be deemed to be an authorised investment business firm for the purposes of this Act, provided that the restricted activity investment product intermediary has not had its authorisation revoked under section 16 (2) of this Act and not re-instated and that no director, officer or manager of the restricted activity investment produce intermediary has been such a director, officer or manager of an investment business firm which has had its authorisation under section 16 (2) of this Act revoked and not re-instated. | ||