Client Newsletter Autumn 2010 - Regulatory & Compliance

Profession:Dillon Eustace
 
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In this Issue:-

Central Bank Reform Act 2010 Data Protection - New Standard Contractual Clauses Data Security Breach Code of Practice CENTRAL BANK REFORM ACT, 2010 – UPDATE

On 29 September, 2010 the Minister for Finance, Mr Brian Lenihan, TD, signed a Commencement Order bringing the Central Bank Reform Act, 2010 ("the Act") into law with effect from 1 October, 2010.

The Act is the first of a three-stage legislative process to create a new fully-integrated structure for financial regulation.

A second Bill, to be published during the autumn legislative session, will enhance the powers and functions of the restructured Central Bank in relation to:

the prudential supervision of individual financial institutions; the conduct of business, including the protection of consumer interest; and the overall stability of the financial system. A third Bill will consolidate the existing statutory arrangements for the Central Bank and financial regulation in the State.

The Act creates a single, fully-integrated Central Bank of Ireland with a unitary Board - the Central Bank Commission which is chaired by the Governor of the Bank. The Irish Financial Services Regulatory Authority is being dissolved and most of its existing functions merged into the new structure. The Act also provides for:

the application of a fitness and probity regime to those occupying key positions within financial service providers; and a relaxation of the lending limits set out in section 35 of the Credit Union Act, 1997 in an effort to facilitate borrowers who have run into difficulties in repaying their loans and need to have them rescheduled to allow for repayment over a longer period of time. The new lending limits are accompanied by measures to balance the increased flexibility in relation to rescheduling. Certain provisions of the Act are not being commenced at this stage.

DATA PROTECTION - NEW STANDARD CONTRACTUAL CLAUSES

The EU Commission has approved new standard contractual clauses on the transfer of data to data processors established in third countries. The difference between the new clauses and the previous clauses is that the new clauses include provision for the onward appointment of sub-processors being appointed by data processors in Third Countries. This is a welcomed development in the area of data protection. The new clauses came into force on 15 May, 2010.

For further details please contact David Nolan in Dillon Eustace

DATA SECURITY BREACH CODE OF...

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