Central Bank (Individual Accountability Framework) Act 2023

Amendment of section 22 of Act of 2010

11. Section 22 of the Act of 2010 is amended—

(a) in subsection (1), by the insertion of “in relation to a regulated financial service provider” after “is a pre-approval controlled function”,

(b) by the insertion of the following subsection after subsection (1):

“(1A) A function is a pre-approval controlled function in relation to a holding company if it is prescribed as such in regulations made pursuant to subsection (2A).”,

(c) by the substitution of the following subsections for subsection (2):

“(2) The Bank may by regulations prescribe a function that is a controlled function in relation to a regulated financial service provider as a pre‑approval controlled function in relation to a regulated financial service provider, if the function is one by which a person may exercise a significant influence on the conduct of a regulated financial service provider’s affairs.

(2A) The Bank may by regulations prescribe a function that is a controlled function in relation to a holding company as a pre-approval controlled function in relation to a holding company, if the function is one by which a person may exercise a significant influence on the conduct of a holding company’s affairs.

(2B) In prescribing a function as a pre-approval controlled function pursuant to subsection (2) or (2A), the Bank may describe or identify the function by reference to a title commonly used for a person who performs the function.”,

and

(d) by the substitution of the following subsections for subsections (3) and (4):

“(3) Without prejudice to the generality of subsections (2) and (2A), the Bank may prescribe a controlled function as a pre-approval controlled function in relation to a regulated financial service provider, pursuant to subsection (2), or in relation to a holding company, pursuant to subsection (2A), if—

(a) the person who performs the function reports directly to—

(i) a person who holds an office or position mentioned in a subparagraph of subsection (4)(a) in the regulated financial service provider or holding company, or

(ii) in the case of a regulated financial service provider, a person referred to in paragraph (b) or (c) of subsection (4),

and

(b) the Bank is satisfied that the prescription of the function as a pre‑approval controlled function—

(i) is warranted on the grounds of the size or complexity of the regulated financial service provider or holding company or its business, and

(ii) is necessary or prudent in order to verify the compliance by the regulated financial service provider or holding company with its relevant obligations.

(4) For the purposes of subsections (2) and (2A), each of the following shall be taken to exercise a significant influence on the conduct of the affairs of the regulated financial service provider or holding company concerned (in this subsection referred to as ‘the entity’):

(a) where the entity is a body corporate of a prescribed class, a person who holds, or performs the duties of, any of the following offices or positions in the entity:

(i) the office of director;

(ii) the office of chief executive;

(iii) the office of secretary;

(iv) subject to subsection (3), an office or position the holder of which reports directly to—

(I) a person who holds an office referred to in subparagraph (i), (ii) or (iii) in the entity, or

(II) where the entity is a regulated financial service provider, a person referred to in paragraph (b) or (c);

(b) where the entity is a partnership that is a regulated financial service provider of a prescribed class, each member of the partnership;

(c) where the entity is a natural person that is a regulated financial service provider of a prescribed class, that person.”.