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Grant of approval to operate as an approved professional body.
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56.—(1) Subject to the provisions of this section, the Bank may grant or refuse to grant to any professional body an approval to operate as an approved professional body.
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(2) The grant of an approval under subsection (1) of this section may be given unconditionally or may be given subject to such conditions or requirements or both as the Bank considers fit.
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(3) Whenever the Bank refuses to approve of a professional body under this section, it shall serve notice on that professional body, and on the Minister, of its refusal to grant approval and state the reasons therefor.
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(4) An application for approval under subsection (1) of this section shall be in such form and contain such particulars as the Bank shall specify from time to time and, without prejudice to the generality of the aforesaid, shall include a copy of any charters, memorandum and articles of association, or other constitutional document, of the applicant and a copy of the rules and regulations under which the applicant proposes to conduct its business insofar as they affect or touch upon the regulation of investment business firms or investment business services or investment advice.
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(5) A professional body which applies for approval under this section shall not be approved of by the Bank unless—
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(a) it satisfies the Bank that any charters, memorandum of association and articles of association or other constitutional document and the rules of the applicant body together with any powers granted to the body or available to it under any enactment contain sufficient provisions so as to enable it to operate in accordance with this Act and in accordance with any conditions or requirements or both as the Bank may impose;
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(b) it satisfies the Bank as to the probity and competence of those of its managers who are primarily concerned with the regulation and supervision of certified persons;
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(c) (i) its rules or charters or other constitutional documents contain sufficient provision for the publication of information regarding inquiries or proceedings regarding any disciplinary matter investigated by the professional body concerned where the proceedings are concerned with the provision of investment business services; or
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(ii) such matters are regulated by any other enactment;
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(d) it has sufficient powers under its rules or otherwise for the regulation of the carrying on of investment business services or investment advice by persons certified by it for the purposes of this Act;
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(e) it has adequate arrangements and resources for the effective monitoring of the activities of certified persons and for the enforcement of rules and conditions regulating the persons regulated by it and there is sufficient provision in its rules or under any enactment to provide for the withdrawal or suspension of certificates issued;
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(f) where not based in the State it satisfies the Bank that it has a similar legal status in its home Member State or third country as that of approved professional bodies in the State, and that its members or persons regulated by it in that country are entitled to act as investment business firms.
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(6) The Bank may, at any time prior to the grant or refusal of approval, request further information from an applicant or may instruct an authorised officer to make such inquiries or carry out such investigation as may be necessary for the purpose of evaluating an application under this section and such inquiries or investigations shall be carried out in accordance with this Act.
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(7) Any proposed amendment or addition that relates directly or indirectly to regulation of investment business services or to investment advice to the memorandum of association or articles of association or other constitutional document or rules of an approved professional body shall be made only with the prior consent in writing of the Bank, insofar as they relate to the provision of investment business services or investment advice.
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(8) A professional body which has made an application under this section for approval shall be informed as soon as may be after the date of receipt of the application for approval or after the entry into force of this section, whichever is the later, whether or not the approval has been granted.
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(9) It shall be an offence for a professional body to apply for approval under this section knowingly or recklessly using false or misleading information or knowingly or recklessly making false or misleading statements.
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(10) Subject to any enactments governing its activities, an approved professional body shall establish and maintain procedures to investigate complaints against itself and certified persons in relation to the provision of investment business services or investment advice or to codes of practice established under this Act.
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(11) Any appointment to the post of manager of any person to be concerned primarily with the supervision of certified persons on or after the granting of an approval under this section shall be subject to the prior approval in writing of the Bank, which said approval shall not be given unless the approved professional body satisfies the Bank as to the probity and competence of the proposed appointee.
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