Investment Intermediaries Act, 1995

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Revocation of approval.

61.—(1) The Bank may revoke its approval of an approved professional body in all or any of the following circumstances, namely, where—

(a) a request has been made to it in that behalf by an approved professional body,

(b) an approved professional body—

(i) has failed to operate as an approved professional body within 12 months of the date on which the approval to be an approved professional body was granted,

(ii) has failed to operate as an approved professional body for a period of more than 6 months,

(iii) is being wound up.

(2) Without prejudice to the power of the Bank to revoke an approval under subsection (1) of this section, the Bank may apply to the Court, in a summary manner, for an order revoking the approval of an approved professional body in any or all of the following circumstances, namely, where—

(a) it is expedient to do so in the interest of the proper and orderly regulation of approved professional bodies or certified persons or in order to protect investors or in any or all of these circumstances;

(b) an approved professional body has been convicted on indictment of any offence under this Act or any Act under which the Bank exercises statutory functions or any offence involving fraud, dishonesty or breach of trust;

(c) circumstances have materially changed since the granting of approval to that approved professional body such that, if an application for approval was made at the time of the application to the Court, a different decision would be taken in relation to the application for approval;

(d) the approval was obtained by knowingly or recklessly making false or misleading statements, or by knowingly or recklessly using false or misleading information;

(e) an approved professional body has failed to comply to a material degree with a requirement of this Act;

(f) an approved professional body fails to comply with any or all of the conditions or requirements which were imposed when approval was granted or which were subsequently imposed;

(g) an approved professional body becomes unable or, in the opinion of the Bank, is likely to become unable to meet its obligations to its creditors or suspends payments lawfully due;

(h) the directors and managers of an approved professional body who are primarily concerned with the regulation of certified persons are no longer deemed by the Bank to fulfil the conditions of competence and probity required by section 56 of this Act;

(i) an approved professional body has so organised itself that the approved professional body and, where appropriate, any related undertaking or associated undertaking, either collectively or individually, is no longer capable of being supervised to the satisfaction of the Bank under this Act.

(3) When the Bank proposes to revoke the approval of an approved professional body or proposes to apply to the Court for an order to revoke approval of an approved professional body the following procedure shall apply, namely, the Bank shall serve notice on the approved professional body concerned of its intention and shall state its reasons in the said notice.

(4) Where an application is made to the Court under this section the Court may make such interim or interlocutory orders as the circumstances may require.

(5) Where approval of an approved professional body is revoked and where the approved professional body concerned is not a company which is being wound up—

(a) the former approved professional body and its members shall continue to be subject to the duties and obligations imposed by this Act until all the liabilities, duties and obligations of the said approved professional body have been discharged to the satisfaction of the Bank,

(b) the former approved professional body shall, as soon as possible, after the revocation, notify the Bank, its members and such other persons, if any, as the Bank indicates are to be notified of the measures being taken to discharge without undue delay the liabilities, duties and obligations of the said approved professional body,

(c) in the case where—

(i) the former approved professional body has notified the Bank in accordance with paragraph (b) of this subsection and the Bank is of the opinion that the measures being taken or proposed to be taken for the purposes of that paragraph are not satisfactory, or

(ii) the former approved professional body has not so notified the Bank and the Bank is of the opinion that the said approved professional body has failed to so notify as soon as possible after the approval is revoked, or

(iii) the Bank is of the opinion that the former approved professional body has failed to take all reasonable steps to notify persons which the Bank has indicated, under paragraph (b) of this subsection, are to be notified,

then, subject to subsection (9) of this section, the Bank may give a direction in writing to the former approved professional body for such period, not exceeding six months, prohibiting the former approved professional body so directed from any or all of the following, namely—

(I) creating any liabilities;

(II) dealing with or disposing of any assets or specified assets of the former approved professional body or of members in any manner;

(III) engaging in any transaction or class of transactions or specified transaction;

(IV) making payments;

without the prior authorisation of the Bank, and the Bank may further direct that former approved professional body within two months of the initial direction to prepare and submit to the Bank for its approval a scheme for the orderly discharge of the liabilities, duties and obligations concerned.

(6) Where the approval of an approved professional body is revoked and the approved professional body is a company which is being wound up—

(a) the liquidator of the former approved professional body shall, in addition to his duties and obligations in respect of the winding up, be subject to the duties and obligations to which the former approved professional body would be subject if it were a former approved professional body to which subsection (5) of this section relates and that subsection shall for the purposes of this subsection be construed accordingly;

(b) notwithstanding paragraph (a) of this subsection, the Bank may, where its approval of an approved professional body is revoked and where the Bank considers it appropriate in the circumstances, remove, on giving notice to that effect in writing to the former approved professional body, the duties and obligations imposed on the liquidator concerned to comply with paragraph (b) of subsection (5) of this section and may impose in writing on that liquidator such further duty or obligation which corresponds to that set out in paragraph (b) of that subsection;

(c) nothing in this subsection shall be construed as affecting any duty or obligation under this Act of any of the members of the former approved professional body concerned.

(7) The Bank shall publish notice of any revocation of an approval of an approved professional body in the Iris Oifigiúil within 28 days of revocation.

(8) An approved professional body whose approval has been revoked under this Act shall cease to operate as an approved professional body.

(9) Where the Bank gives a direction under subsection (5) of this section it may apply to the Court, on being satisfied that the direction has not been complied with and the Court may confirm or set aside or vary the direction on such terms and for such period as the Court thinks fit.

(10) The Bank shall not exercise its powers under subsection (2)(h) of this section unless it has given the approved professional body an opportunity to remove the director or manager or otherwise deal with the concerns of the Bank in relation to the probity or competence of the person concerned within such period of time as the Bank may specify.

(11) An application under this section may be heard otherwise than in public.