Central Bank and Financial Services Authority of Ireland Act 2003

Insertion into the Principal Act of new sections 18A to 18D.

13.—The Principal Act is amended by inserting in Part III the following sections before section 19:

“Interpretation: Part III.

18A.—In this Part, unless the context otherwise requires—

‘credit institution’ means an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credit on its own account but does not include the European Central Bank;

‘financial institution’ means an undertaking, other than a credit institution, that provides one or more of the kinds of financial services that are set out in the Schedule to the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 ( S.I. No. 395 of 1992 );

‘insurance undertaking’ has the meaning given by the Insurance Act 1989 .

Bank to have Board of Directors.

18B.—(1) The Board of Directors of the Bank comprises the following persons:

(a) the Governor;

(b) the Director General of the Bank;

(c) the Secretary General of the Department of Finance;

(d) the Chairperson of the Regulatory Authority;

(e) the Chief Executive of that Authority;

(f) 7 other Directors appointed by the Minister.

(2) Of the other Directors, 4 are to be members of the Regulatory Authority.

(3) A person is not eligible for appointment as a Director if the person—

(a) is a member of either House of the Oireachtas or is, with the person's consent, nominated as a candidate for election as such a member or is nominated as a member of Seanad Éireann, or

(b) is a member of the European Parliament or is, with the person's consent, nominated as a candidate for election as such a member or to fill a vacancy in the membership of that Parliament, or

(c) is a member of a local authority or is, with the person's consent, nominated as a candidate for election as such a member.

(4) The performance and exercise of the functions and powers of the Board are not affected by there being one or more vacancies in the membership of the Board.

(5) The Governor is the Chairperson of the Board.

Acts, etc. of the Board to be acts, etc. of the Bank.

18C.—Any act, matter or thing done in the name of, or on behalf of, the Bank by the Board in the performance or exercise of the Board's functions or powers is to be taken to have been done by the Bank.

Functions and powers of the Board.

18D.—(1) The Board has the following functions:

(a) to perform the functions of the Bank under sections 6B to 6K;

(b) to perform such other functions as are expressly imposed on it by this or under any other Act or law.

(2) The Board has power to do whatever is necessary for or in connection with, or reasonably incidental to, the performance of its functions.

(3) Without limiting subsection (2), the Board may do all or any of the following:

(a) establish committees of the Board consisting of one or more members of the Board either solely or together with one or more officers of the Bank;

(b) determine the procedure and define the functions and powers of any such committees;

(c) delegate to a specified person or body (including a committee established under paragraph (a)) the performance or exercise of any one or more of the functions and powers of the Bank or of the Board;

(d) impose conditions, limitations, or restrictions on the performance or exercise by any such person or body of functions or powers delegated under this subsection;

(e) provide in appropriate cases for the review by the Board of decisions taken or things done by any such person or body in the performance or exercise of any function or power delegated under this subsection.

(4) Subsection (3) does not authorise the Board to delegate to a committee, or to a person or body, any function of the Bank that must, by a provision of this Act, be performed by either the Governor or the Regulatory Authority.

(5) If the Board establishes a committee of the Board called the ‘Monetary Committee of the Board’ (or a similar name) and the committee consists only of those members of the Board who are not members of the Regulatory Authority, the Governor is taken to have complied with section 19A(3) if the Governor provides the committee with information about the carrying out by the Governor of the responsibilities referred to in section 19A(2).”.