Investment Intermediaries Act, 1995

Revocation of authorisation.

16.—(1) A supervisory authority may revoke the authorisation of an authorised investment business firm where—

(a) a request is made to it in that behalf by the authorised investment business firm, or

(b) an authorised investment business firm—

(i) has failed to operate as an investment business firm within 12 months of the date on which it was authorised under this Act, or

(ii) has failed to operate as an investment business firm for a period of more than six months, or

(iii) is being wound up.

(2) Without prejudice to the power of a supervisory authority to revoke an authorisation under subsection (1) of this section, a supervisory authority may apply to the Court in a summary manner for an order revoking the authorisation of an authorised investment business firm in any or all of the following circumstances, namely, where—

(a) it is expedient to do so in the interests of the proper and orderly regulation and supervision of investment business firms or in order to protect investors or in any or all of these circumstances,

(b) an authorised investment business firm has been convicted on indictment of any offence under this Act or any Act under which a supervisory authority exercises statutory functions or any offence involving fraud, dishonesty or breach of trust,

(c) circumstances have materially changed since the granting of the authorisation such that, if an application for authorisation were made at the time of the application to the Court, a different decision would be taken in relation to the application for authorisation,

(d) the authorisation was obtained by knowingly or recklessly making false or misleading statements, or by knowingly or recklessly using false or misleading information,

(e) an authorised investment business firm has systematically failed to comply with a condition or requirement of this Act,

(f) an authorised investment business firm has failed to comply I to a material degree with a condition or requirement of this Act,

(g) an authorised investment business firm no longer fulfils any or all of the conditions or requirements which were imposed when the authorisation was granted or which were subsequently imposed,

(h) an authorised investment business firm—

(i) no longer complies with capital or any other financial requirements specified by the supervisory authority from time to time, or

(ii) is not maintaining, or is unlikely to be able to maintain, adequate capital resources or other financial resources having regard to the nature and volume of its business,

(i) an authorised investment business firm becomes unable or, in the opinion of the supervisory authority, is likely to become unable, to meet its obligations to its creditors or suspends payments lawfully due,

(j) an authorised investment business firm has infringed to a material degree a code of conduct or rules of conduct specified in or set out under section 37 of this Act,

(k) a director, manager or qualifying shareholder of an authorised investment business firm is no longer deemed by the supervisory authority to fulfil the conditions required by section 10 of this Act to be a director or manager or qualifying shareholder of an authorised investment business firm,

(l) an authorised investment business firm has failed to comply with a condition, requirement or direction, or any or all of these, imposed under this Act and the circumstances are such that the supervisory authority is of the opinion that the stability and soundness of the authorised investment business firm is or has been materially affected by such a failure,

(m) an authorised investment business firm has so organised its business or corporate structure such that the authorised investment business firm and, where appropriate, any related undertaking or associated undertaking, either collectively or individually, is no longer capable of being supervised to the satisfaction of the supervisory authority under this Act.

(3) When the supervisory authority proposes to revoke the authorisation of an authorised investment business firm or proposes to apply to the Court for an order to revoke the authorisation of an investment business firm, the following procedure shall apply, namely, the supervisory authority shall serve notice on the authorised investment business firm of its intention and shall state its reasons in the notice.

(4) Where an application is made to the Court under this section the Court may make such interim or interlocutory orders as the circumstances may require.

(5) Persons (being persons who were authorised investment business firms) whose authorisation has been revoked (in this section referred to as “former authorised investment business firms”) shall continue to be responsible for arranging the discharge of all contracts entered into before announcement of the revocation of the authorisation, unless the supervisory authority states otherwise.

(6) Where the authorisation of an authorised investment business firm is revoked and the former authorised investment business firm, if a company, is not being wound up, or, if an unincorporated body of persons, is not the subject of a dissolution order, or, if a natural person, is not the subject of an adjudication of bankruptcy:

(a) the former authorised investment business firm shall continue to be subject to the duties and obligations imposed by this Act and any codes of conduct or rules of conduct or client money requirements or any other conditions or requirements imposed by a supervisory authority under any section of this Act until all the liabilities, duties and obligations of the said investment business firm have been discharged to the satisfaction of the supervisory authority,

(b) the former authorised investment business firm shall, as soon as possible after the revocation of the authorisation, notify the supervisory authority and such other persons, if any, as the supervisory authority indicates are to be notified, of the measures being taken to discharge without undue delay the liabilities, duties and obligations of the said investment business firm, and

(c) in the case where—

(i) the former authorised investment business firm has notified the supervisory authority in accordance with paragraph (b) of this subsection, and the supervisory authority is of the opinion that the measures being taken or proposed to be taken for the purposes of this section are not satisfactory, or

(ii) the former authorised investment business firm has not so notified the supervisory authority and the supervisory authority is of the opinion that the former authorised investment business firm has failed to so notify as soon as possible after the authorisation is revoked, or

(iii) the supervisory authority is of the opinion that the former authorised investment business firm has failed to take all reasonable steps to notify persons which the supervisory authority has indicated, under paragraph (b) of this subsection, are to be notified,

then, subject to subsection (10) of this section, the supervisory authority may give a direction in writing to the former authorised investment business firm for such period, not exceeding six months, prohibiting the former authorised investment business firm so directed from any or all of the following, namely—

(I) creating any liabilities,

(II) dealing with or disposing of any assets or specified assets of the former authorised investment business firm in any manner,

(III) engaging in any transaction or class of transaction or specified transaction,

(IV) making payments,

without the prior authorisation of the supervisory authority and the supervisory authority may further direct that former authorised investment business firm within two months of the initial direction to prepare and submit to it for its approval a scheme for the orderly discharge in full of the liabilities, duties and obligations concerned.

(7) Where the authorisation of an investment business firm is revoked and the former authorised investment business firm, if a company, is being wound up, or, if constituted as an unincorporated body of persons, is the subject of a dissolution order, or if a natural person is subject to an adjudication of bankruptcy then—

(a) the liquidator or the official assignee or receiver of the former authorised investment business firm shall, in addition to his duties and obligations in respect of the winding-up, dissolution or bankruptcy, be subject to the duties and obligations to which the former authorised investment business firm would be subject if it were an authorised investment business firm to which subsection (6) of this section relates and that subsection shall for the purposes of this section be construed accordingly,

(b) the liquidator or the official assignee or receiver shall also be subject to any conditions or requirements imposed under this Act as if the liquidator or the official assignee or receiver were an authorised investment business firm, and

(c) notwithstanding paragraph (a) of this subsection, the supervisory authority may, where authorisation is revoked and where the supervisory authority considers it appropriate in the circumstances, remove, on giving notice in writing to the liquidator, receiver or assignee of the former authorised investment business firm or the official assignee, in the case of bankruptcy, the duties and obligations imposed on the liquidator, receiver or official assignee concerned to comply with paragraph (b) of subsection (6) of this section and may impose, in writing, on that liquidator, receiver or official assignee such further duty or obligation which corresponds to that set out in paragraph (b) of that subsection.

(8) The supervisory authority shall publish notice of revocation of an authorisation of an authorised investment business firm in the Iris Oifigiúil within 28 days of such revocation.

(9) A former authorised investment business firm shall cease to operate as an investment business firm and it shall be an offence for a former authorised investment business firm to operate as an investment business firm.

(10) Where the supervisory authority gives a direction under subsection (6) of this section, it may apply to the Court, on being satisfied that the direction has not been complied with, and the Court may confirm, vary or set aside the direction on such terms and for such period as the Court thinks fit.

(11) The supervisory authority shall not apply to the Court to revoke an authorisation on the grounds set out in subsection (2) (k) of this section unless it has given an authorised investment business firm an opportunity to remove the director, manager or qualifying shareholder or otherwise deal with the concerns of the supervisory authority in relation to the probity or competence of the person concerned within such period of time as the supervisory authority may specify.

(12) An application under this section may be heard otherwise than in public.