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Amendment of section 22 of Act of 2010
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11. Section 22 of the Act of 2010 is amended—
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(a) in subsection (1), by the insertion of “in relation to a regulated financial service provider” after “is a pre-approval controlled function”,
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(b) by the insertion of the following subsection after subsection (1):
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“(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).”,
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(c) by the substitution of the following subsections for subsection (2):
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“(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.
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(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.
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(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.”,
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and
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(d) by the substitution of the following subsections for subsections (3) and (4):
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“(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—
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(a) the person who performs the function reports directly to—
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(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
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(ii) in the case of a regulated financial service provider, a person referred to in paragraph (b) or (c) of subsection (4),
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and
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(b) the Bank is satisfied that the prescription of the function as a pre‑approval controlled function—
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(i) is warranted on the grounds of the size or complexity of the regulated financial service provider or holding company or its business, and
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(ii) is necessary or prudent in order to verify the compliance by the regulated financial service provider or holding company with its relevant obligations.
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(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’):
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(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:
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(i) the office of director;
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(ii) the office of chief executive;
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(iii) the office of secretary;
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(iv) subject to subsection (3), an office or position the holder of which reports directly to—
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(I) a person who holds an office referred to in subparagraph (i), (ii) or (iii) in the entity, or
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(II) where the entity is a regulated financial service provider, a person referred to in paragraph (b) or (c);
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(b) where the entity is a partnership that is a regulated financial service provider of a prescribed class, each member of the partnership;
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(c) where the entity is a natural person that is a regulated financial service provider of a prescribed class, that person.”.
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