Insurance Act, 2000

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Amendment of section 26 of Act of 1995 (Definition of restricted activity investment product intermediaries).

23.—Section 26 of the Act of 1995 is hereby amended—

(a) in subsection (1)—

(i) by the substitution of the following for everything before subparagraph (i):

“In this Act, ‘restricted activity investment product intermediary’ means a person whose only investment business service is engaging in, or providing investment advice in relation to, any or all of the following services:

(a) receiving and transmitting orders in units or shares in undertakings for collective investment in transferable securities within the meaning of the Regulations of 1989, units in a unit trust, other collective investment scheme instruments, or shares in a company which are listed on a stock exchange or bonds so listed or prize bonds, tracker bonds or insurance policies;

(b) acting as a deposit agent or deposit broker,

and who, in the course of engaging in any of those services, transmits orders only to all or any of the following product producers:”,

(ii) in subparagraph (vi) by the substitution for “scheme,” of “scheme;”,

(iii) by the insertion of the following after subparagraph (vi):

“(vii) insurance undertakings,”,

(iv) in clause (I)—

(I) by the substitution for “subparagraphs (i) to (vi)” of “subparagraphs (i) to (vii)”, and

(II) by the deletion after “of orders,” of “or”,

(v) in clause (II) by the substitution for “credit institution.” of “credit institution,” and

(vi) by the insertion of the following after clause II):

“(III) taking cash from a client in circumstances to which section 25G applies when acting as an insurance intermediary, or

(IV) taking cash from a client in circumstances to which section 25E applies when acting as a tied insurance agent.”,

(b) by the insertion of the following after subsection (2):

“(2A) A person who is an insurance intermediary on the day immediately prior to the coming into operation of section 16 (1)(b) of the Insurance Act, 2000, shall, while that person remains a restricted activity investment product intermediary and notwithstanding subsection (2) of this section and section 10 of this Act, be deemed to be an authorised investment business firm for the purposes of this Act provided that—

(a) the restricted activity investment product intermediary has not had its authorisation revoked under section 16(2) of this Act and not re-instated,

(b) no officer of the restricted activity investment product intermediary has been an officer of an investment business firm which has had its authorisation revoked under section 16(2) of this Act and not re-instated,

(c) the restricted activity investment product intermediary furnishes to the supervisory authority not later than 3 months from the commencement of this section, in such form as the authority may specify, such information as it may reasonably require, for the purposes of its functions under this section, in relation to such matters as the authority may specify, and

(d) there has not been a failure by—

(i) the restricted activity investment product intermediary or a related undertaking of the intermediary, or

(ii) an officer of the intermediary or the undertaking,

to comply with a condition, requirement or direction imposed by the supervisory authority under this Act that is, in the opinion of the supervisory authority, prejudicial to the proper and orderly regulation and supervision of investment business firms or the protection of investors or both.”,

(c) by the substitution of the following for subsection (3):

“(3) Nothing in this section shall prevent a restricted activity investment product intermediary from complying with the requirement of regulations made under section 43D to implement section 43E(1)(a)(iii) and (iv) of the Insurance Act, 1989 .”,

and

(d) by the insertion of the following subsection:

“(4) Subsections (2) and (2A) of this section shall apply without prejudice to any of the powers of a supervisory authority in relation to this Act.”.