S.I. 734 of 2004

European Communities (Licensing and Supervision of Credit Institutions) (Amendment) Regulations 2004

I, Brian Cowen, Minister for Finance, in exercise of the powers conferred on me by the European Communities Act 1972 (No. 27 of 1972), as amended by the European Communities (Amendment) Act 1993 , and for the purpose of giving effect to Directive 2002/87/EC, dated 16 December 2002, of the European Parliament and of the Council, hereby make the following regulations:

Citation and commencement

1.       (1)   These Regulations may be cited as the European Communities (Licensing and Supervision of Credit Institutions) (Amendment) Regulations 2004.

(2)   These Regulations come into operation on 1 January 2005.

Interpretation

2.       In these Regulations, “Principal Regulations” means the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. 395 of 1992).

Amendment of Regulation 2 of the Principal Regulations

3.       Regulation 2(1) of the Principal Regulations is amended as follows:

(a)      by substituting the following definition for the definition of “competent authority”

“‘competent authority’--

(a)      in relation to the State, means the Bank, and

(b)      in relation to every other Member State, means the authority of that State whose function it is to supervise credit institutions, insurance undertakings or investment firms (either on an individual or groupwide basis), or any two or more of those kinds of entities;”;

(b)      by inserting the following definition after the definition of “functions”:

“‘group’ means--

(a)      a group that comprises a parent undertaking and subsidiaries of the undertaking and any entities in which the parent undertaking or any of its subsidiaries participate, or

(b)      a group of undertakings linked to each other by a relationship as defined by Article 12(1) of Directive 83/349/EEC;”.

Substitution of Regulation 8 of the Principal Regulations

4.       The Principal Regulations are amended by inserting the following Regulation after Regulation 8:

“Bank to consult competent authorities of other Member States in certain circumstances

8A. (1) The Bank shall consult the competent authorities of the other Member States concerned before granting an authorisation to an insurance undertaking that is--

(a)      a subsidiary of an insurance undertaking authorised in another Member State, or

(b)      a subsidiary of the parent undertaking of such an insurance undertaking, or

(c)      controlled by the same person who controls such an insurance undertaking.

(2) The Bank shall consult the competent authority of the other Member State responsible for the supervision of credit institutions or investment firms before granting an authorisation to an insurance undertaking that is--

(a)      a subsidiary of a credit institution or investment firm authorised in another Member State, or

(b)      a subsidiary of the parent undertaking of such a credit institution or investment firm, or

(c)      controlled by the same person who controls such a credit institution or investment firm.

(3) In particular, the Bank shall--

(a)      when assessing the suitability of the shareholders, consult with the competent authorities referred to in paragraphs (1) and (2) of this Regulation and the reputation and experience of directors involved in the management, of another entity of the same group, and

(b)      either when involved in granting an authorisation to an insurance undertaking or in assessing compliance by such an undertaking with the conditions under which it is authorised to operate, inform each of the other competent authorities of the other Member States concerned of any information regarding the suitability of shareholders, and the reputation and experience of directors, that is of relevance to those authorities.”.

Amendment of Regulation 14 of the Principal Regulations

5.       Regulation 14 of the Principal Regulations is amended by substituting the following paragraph for paragraph (5):

“(5) If--

(a)      a person to whom any paragraph of paragraphs (1) to (4) applies proposes to acquire 50 per cent or more of the shares or voting rights attaching to shares in a credit institution or, being a body corporate, proposes to acquire an interest in a credit institution that would make the credit institution a subsidiary, or subject to the control, of the person, and

(b)      the person is--

(i)       an insurance undertaking, a credit institution or an investment firm authorised by a competent authority of another Member State, or

(ii)      the parent undertaking of such an undertaking, institution or firm, or

(iii)      a person (whether natural or legal) that controls such an undertaking, institution or firm,

the Bank shall consult that authority before communicating its decision under paragraph (4).”.

Amendment of Regulation 15 of Principal Regulations

6.       Regulation 15 of the Principal Regulations is amended by substituting the following paragraph for paragraph (7):

“(7) In this Regulation, ‘relevant body corporate’ does not include a body corporate that is a credit institution or a financial institution or, unless the Bank otherwise directs, an undertaking that is duly authorised under the law of any other country or territory to carry on life insurance business or non-life insurance or reinsurance business.”.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation).

These Regulations give effect to a number of provisions in Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council, which apply specifically to credit institutions.