INVESTOR COMPENSATION ACT, 1998

Original version:<a href='/vid/investor-compensation-act-1998-748191077'>INVESTOR COMPENSATION ACT, 1998</a>
 
FREE EXCERPT


Number 37 of 1998


INVESTOR COMPENSATION ACT, 1998


ARRANGEMENT OF SECTIONS

PART I

Preliminary and General

Section

1.

Short title and commencement.

2.

Interpretation.

3.

Service of notices.

4.

Expenses.

5.

Power to make regulations.

6.

Laying of regulations before Houses of Oireachtas.

7.

Repeals.

8.

Appointment of supervisory authority and competent authority.

9.

Authorised officers.

PART II

Administration of Investor Compensation

10.

Formation of Company.

11.

Alteration of memorandum of association and articles of association of Company.

12.

Objects and powers of Company.

13.

Powers of Company.

14.

Accounts of Company and audits.

15.

Performance of functions.

16.

Non-application of section 182 (Removal of directors) of Act of 1963.

17.

Members of Company.

18.

Directors of Company.

19.

Establishment of fund.

20.

Administrative services for Company.

21.

Contributions of investment firms.

22.

Maintenance of funds.

23.

Costs of administration.

24.

Procedures to investigate complaints.

25.

Approval of investor compensation schemes.

26.

Revocation of approval of compensation scheme.

27.

Failure by investment firms to comply with obligations.

28.

Application to Court for confirmation of direction.

29.

Product producers.

PART III

Payment of Compensation to Investors

30.

Interpretation for Part. III.

31.

Determination that an investment firm cannot meet its obligations.

32.

Applications for compensation.

33.

Appointment of an administrator.

34.

Payment of compensation.

35.

Further provisions relating to payment of compensation.

36.

Provisions relating to restricted intermediaries.

PART IV

Miscellaneous

37.

Joint accounts and trustees.

38.

Information to investors and advertising.

39.

Investment firms joining compensation schemes in other Member States.

40.

Membership of compensation scheme by investment firm authorised in another Member State.

41.

Compulsory insurance of authorised investment firms.

42.

Exemption from liability for damages.

43.

Offences and penalties.

44.

Amendment of section 2(7) of Act of 1995.

45.

Amendment of section 2 of Act of 1994.

46.

Insertion of new section in Act of 1994.

47.

Provisions relating to solicitors.

PART V

Miscellaneous Amendments

48.

Amendment of section 16 of Central Bank Act, 1989.

49.

Amendment of section 44 of Act of 1989.

50.

Amendment of section 46 of Act of 1989.

51.

Amendment of section 49 of Act of 1989.

52.

Amendment of section 2 of Act of 1995.

53.

Amendment of section 9 of Act of 1995.

54.

Amendment of section 10 of Act of 1995.

55.

Amendment of section 14 of Act of 1995.

56.

Amendment of section 16 of Act of 1995.

57.

Amendment of section 17 of Act of 1995.

58.

Amendment of section 21 of Act of 1995.

59.

Amendment of section 26 of Act of 1995.

60.

Amendment of section 28 of Act of 1995.

61.

Amendment of section 31 of Act of 1995.

62.

Amendment of section 33 of Act of 1995.

63.

Amendment of section 38 of Act of 1995.

64.

Amendment of section 52 of Act of 1995.

65.

Amendment of section 54 of Act of 1995.

66.

Amendment of section 65 of Act of 1995.

67.

Amendment of section 74 of Act of 1995.

68.

Amendment of section 75 of Act of 1995.

69.

Amendment of section 79 of Act of 1995.

70.

Amendment of section 8 of Stock Exchange Act, 1995.

71.

Amendment of section 14 of Stock Exchange Act, 1995.

72.

Amendment of section 17 of Stock Exchange Act, 1995.

73.

Amendment of section 18 of Stock Exchange Act, 1995.

74.

Amendment of section 24 of Stock Exchange Act, 1995.

75.

Amendment of section 29 of Stock Exchange Act, 1995.

76.

Amendment of section 34 of Stock Exchange Act, 1995.

77.

Amendment of section 39 of Stock Exchange Act, 1995.

78.

Amendment of section 52 of Stock Exchange Act, 1995.

79.

Amendment of section 54 of Stock Exchange Act, 1995.

80.

Amendment of section 56 of Stock Exchange Act, 1995.

81.

Amendment of section 65 of Stock Exchange Act, 1995.

82.

Amendment of section 66 of Stock Exchange Act, 1995.

83.

Amendment of section 70 of Stock Exchange Act, 1995.

FIRST SCHEDULE

Repeals

SECOND SCHEDULE

Supplementary provision in relation to a Direction by a Supervisory Authority under Section 27

THIRD SCHEDULE

Directive 97/9/EC of the European Parliament and of the Council of 3 March 1997 on Investor-Compensation Schemes

Acts Referred to

Building Societies Act, 1989

1989, No. 17

Central Bank Act, 1971

1971, No. 24

Central Bank Act, 1989

1989, No. 16

Central Bank Act, 1997

1997, No. 8

Companies Act, 1963

1963, No. 33

Companies Act, 1990

1990, No. 33

Companies Acts, 1963 to 1990

Companies (Amendment) Act, 1986

1986, No. 25

Criminal Justice Act, 1994

1994, No. 15

Insurance Act, 1989

1989, No. 3

Investment Intermediaries Act, 1995

1995, No. 11

Local Government Act, 1941

1941, No. 23

Petty Sessions (Ireland) Act, 1851

14 & 15 Vict., c. 93

Solicitors Act, 1954

1954, No. 36

Solicitors Acts, 1954 to 1994

Solicitors (Amendment) Act, 1960

1960, No. 37

Solicitors (Amendment) Act, 1994

1994, No. 27

Stock Exchange Act, 1995

1995, No. 9

Succession Act, 1965

1965, No. 27

Taxes Consolidation Act, 1997

1997, No. 39

Trustee Act, 1893

c. 53

Trustee Savings Bank Act, 1989

1989, No. 21


Number 37 of 1998


INVESTOR COMPENSATION ACT, 1998


AN ACT TO ENABLE EFFECT TO BE GIVEN TO DIRECTIVE NO. 97/9/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL OF 3 MARCH 1997 ON INVESTOR COMPENSATION SCHEMES(1) , TO PROVIDE FOR INVESTOR COMPENSATION, TO AMEND THE CENTRAL BANK ACT, 1989 , THE INSURANCE ACT, 1989 , THE SOLICITORS (AMENDMENT) ACT, 1994 , THE STOCK EXCHANGE ACT, 1995 , AND THE INVESTMENT INTERMEDIARIES ACT, 1995 , AND TO PROVIDE FOR RELATED MATTERS. [13th July, 1998]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Preliminary and General

Short title and commencement.

1.—(1) This Act may be cited as the Investor Compensation Act, 1998.

(2) This Act shall come into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

Interpretation.

2.—(1) In this Act, unless the context otherwise requires—

“Act of 1963” means the Companies Act, 1963 ;

“Act of 1989” means the Insurance Act, 1989 ;

“Act of 1994” means the Solicitors (Amendment) Act, 1994 ;

“Act of 1995” means the Investment Intermediaries Act, 1995 ;

“administrator” means, where a liquidator or official assignee has been appointed to an investment firm by the Court, that liquidator or official assignee, or where an administrator has been appointed to an investment firm by the supervisory authority, that administrator;

“approved professional body” has the meaning assigned to it by the Act of 1995;

“authorised investment business firm” has the meaning assigned to it by subsection (4);

“authorised investment firm” means—

(a) an authorised investment business firm, or

(b) an authorised member firm, or

(c) a credit institution the authorisation of which by the Bank under Directive No. 77/780/EEC of 12 December 1977(1) and Directive No. 89/646/EEC of 15 December 1989(2) extends to one or more of the investment services listed in section A of the Annex to the Investment Services Directive, or

(d) an insurance intermediary;

“authorised member firm” has the meaning assigned to it by the Stock Exchange Act, 1995 ;

“authorised officer” means a person authorised for the purposes of section 9 ;

“Bank” means the Central Bank of Ireland;

“Board” means the Board of the Company;

“branch”, in the case of an investment firm which is subject to the Investment Services Directive, means a place of business which is part of an investment firm, which has no separate legal personality and which provides investment services for which the investment firm has been authorised by the Bank or by a competent authority in another Member State, and all the places of business set up in the same Member State by an investment firm which has its head office in another Member State shall be regarded as a single branch;

“certified person” has the meaning assigned to it by section 55 of the Act of 1995;

“client” means a person who has entrusted money or investment instruments to an investment firm in connection with the provision of investment business services by the investment firm;

“close relative” means a brother, sister, parent or spouse of a client or a child of the client or of the spouse of the client, where “spouse”, in relation to the client, shall not include a spouse who is living separately and apart from the client;

“Company” means the Investor Compensation Company Limited;

“compensatable loss” has the meaning assigned to it by section 30 (1);

“competent authority” means a competent authority for the purposes of the Investor Compensation Directive;

“Court” means the High...

To continue reading

REQUEST YOUR TRIAL