Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I move amendment No. 1:

In page 24, line 11, to delete “subsections” and substitute “subsection”.

These amendments propose to amend section 13. They all relate to the European Central Bank, ECB, competence in approving persons to pre-approval controlled function roles in significant entities. Section 13 amends section 23A of the Central Bank Reform Act 2010, which provides for how the fitness and probity regime operates in relation to banks that are subject to the direct supervision of the ECB.

The amendments provided for in section 13 are intended to underline the fact that it is the ECB rather than the Central Bank of Ireland that has the competence of the pre-approval assessment of the fitness and probity of individuals who are proposed for appointment to certain positions in significant supervised entities.

Following its publication in July, I consulted the ECB on the provisions of the Bill and I am now bringing forward several amendments to section 13, which arise out of this consultation. Since there is no existing statutory definition for “key function holder”, the Bill, as initiated, proposed to address this by allowing the Central Bank of Ireland to make regulations prescribing those roles that are subject to ECB approval. The ECB raised concerns that regulatory authority and tasks should not be conferred on the Central Bank of Ireland which may impinge on the exclusive competence of the ECB in relation to significant credit institutions. It recommended that section 23A should be clarified so that the role of the ECB in respect of the supervision of these entities is maintained in line with the Single Supervisory Mechanism, SSM, regulation. The amendments will replace the reference to regulations made by the Central Bank of Ireland with a reference to Article 4(1)(e) of the SSM regulation and achieve the same policy objective of clarifying that approval of the appointments concerned is the exclusive competence of the ECB.

Amendment No. 1 is technical. Amendment No. 2 clarifies that the entity shall not appoint a person whose appointment is subject to ECB approval under Article 4(1)(e) of the SSM regulation. Amendment No. 3 clarifies that the entity should not appoint a person to a role unless the ECB has approved the appointment in writing. Amendment No. 4 removes the Central Bank of Ireland from the approval process for appointments to pre-approval controlled functions, PCF, roles in significant entities, approval of which falls within the exclusive competence within the ECB. Amendment No. 5 removes the role of the Central Bank of Ireland in notifying the entity of the ECB’s approval of the proposed amendment.

I recommend these amendments be approved by the committee.