Section 3 amends Part II of the Second Schedule to the Defamation Act 1961. As part of its functions, the authority will be required to make reports and recommendations on the question of commencing financial transfers between insurers under a risk equalisation scheme. The effect of the provision is to add the authority to the bodies which have qualified privilege in respect of a copy or fair and accurate report or summary of any recommendation that the authority may produce. Again, qualified privilege of the same nature is contained in the Irish Takeover Panel Act 1997.