Central Bank Reform Act 2010

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Pre-approval controlled functions.

22.— (1) A function is a pre-approval controlled function if—

(a) it is prescribed as such in regulations made pursuant to subsection (2), or

(b) it has been declared by the Bank to be a pre-approval controlled function by written notice pursuant to subsection (8).

(2) The Bank may prescribe by regulation a controlled function as a pre-approval controlled function 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. In prescribing such a function, the Bank may describe or identify the function by reference to a title commonly used for a person who performs the function.

(3) Without prejudice to the generality of subsection (2), the Bank may, pursuant to that subsection, prescribe a controlled function as a pre-approval controlled function if—

(a) the person who performs the function reports directly to—

(i) a person who holds an office or position mentioned in a subparagraph of subsection (4)(a), or

(ii) a person referred to in paragraph (b) or (c) of subsection (4),

and

(b) the Bank is satisfied that the prescription of the function as a pre-approval controlled function—

(i) is warranted on the grounds of the size or complexity of the regulated financial service provider or its business, and

(ii) is necessary or prudent in order to verify the compliance by the regulated financial service provider with its relevant obligations.

(4) For the purposes of subsection (2)—

(a) in the case of a regulated financial service provider that is a body corporate of a prescribed class, a person who holds or performs the duties of any of the following positions or offices in a regulated financial service provider shall be taken to exercise a significant influence on the conduct of the regulated financial service provider’s affairs:

(i) the office of director;

(ii) the office of chief executive;

(iii) the office of secretary;

(iv) subject to subsection (3), an office or position the holder of which reports directly to—

(I) a person who holds an office or position referred to in subparagraph (i), (ii) or (iii), or

(II) a person referred to in paragraph (b) or (c),

(b) each member of a partnership that is a regulated financial service provider of a prescribed class shall be taken to exercise a significant influence on the conduct of the regulated financial service provider’s affairs, and

(c) if a natural person is a regulated financial service provider of a prescribed class, he or she shall be taken to exercise a significant influence on the conduct of the regulated financial service provider’s affairs.

(5) For the purposes of subsection (4)(a), the Bank may prescribe bodies corporate of a specified class or may prescribe all bodies corporate to be a class. In prescribing bodies corporate of a particular class, the Bank may define the class by reference to any common characteristic of the class, including in particular the kind of business engaged in or the size of the balance sheets of the bodies corporate.

(6) For the purposes of paragraph (b) or (c) of subsection (4), the Bank may prescribe regulated financial service providers that are partnerships or natural persons, as the case may be, of a specified class or may prescribe all regulated financial service providers that are partnerships or natural persons to be a class. In prescribing regulated financial service providers that are partnerships or natural persons of a particular class, the Bank may define the class by reference to any common characteristic of the class, including in particular the kind of business engaged in or the annual turnover of the partnerships or natural persons concerned.

(7) Regulations made under this section may be made in the same instrument as regulations made under section 20 .

(8) The Bank may declare by notice in writing served on a regulated financial service provider that a function performed by, for or on behalf of the regulated financial service provider is a pre-approval controlled function if—

(a) the person who performs the function is concerned in the management of the regulated financial service provider,

(b) the function is not prescribed as a pre-approval controlled function in regulations made pursuant to subsection (2), and

(c) no other person in the regulated financial service provider performs a pre-approval controlled function.