PART 9 – Financial Services: Settlement Finality
Minister for Finance
Head 9-1. Interpretation
Explanatory Note:
This head is a standard legislative provision to provide for the inclusion of additional definitions.
Head 9-2. Temporary designation of relevant arrangement
Explanatory Note:
This head provides for the temporary designation of settlement systems already designated by the Bank of England under their Settlement Finality Regulations. Within three months of the end of the transition period, the operator of a relevant system must notify the Minister and Central Bank of Ireland of its intention to avail of temporary designation up to a maximum period of nine months after that date. This will allow the protection of the Settlement Finality Regulations (S.I. No. 624 of 2010) to be extended to of Irish participants in these UK based systems on a temporary basis and avoid any cliff edge risk or market disruption at the end of the transition period.
Head 9-3. Designation of relevant arrangement
Explanatory Note:
This head provides for ongoing and conditional designation by the Minister of Finance of a UK based system (“relevant arrangement”) for the purposes of the Settlement Finality Regulations. This will extend the protections of the Regulations to Irish firms using settlement or payments systems in the UK. The legislation protects payments and transfers of securities made by Irish participants by ensuring that trades entered into a system fully settle even if one of the participants attempts to revoke the trade or becomes insolvent. This will be required for Irish firms to continue using the CREST settlement system in the UK when it becomes a Third Country. The Central Bank of Ireland is required to carry out a technical equivalence assessment of the UK national laws governing the system for its equivalence with relevant Irish Laws and an assessment of the rules of the system itself to ensure its compliance with the conditions set out in Regulation 7 of the Irish Settlement Finality Regulations.
Head 9-4. Rules applicable to arrangement to which section 69 or 70 applies
Explanatory Note:
This head provides for the necessary amendment of certain definitions in the existing Irish Settlement Finality Regulations as and when these regulations are applied to a system designated under Head 9-2 or Head 9-3 of this Part.
PART 10 – Financial Services: Amendment of European Union (Insurance and Reinsurance) Regulations 2015 and European Union (Insurance Distribution) Regulations 2018
Minister for Finance
Head 10-1. Interpretation
Explanatory Note:
This is a standard legislative provision to provide for the inclusion of additional definitions.
Head 10-2. Amendment of Regulations of 2015
Explanatory Note:
This Head adds a new regulation to the European Union (Insurance and Reinsurance) Regulations 2015 that will establish a temporary domestic runoff regime for certain insurance undertakings for 15 years. In that respect, it provides that insurance undertakings which meet certain conditions shall be deemed to be authorised for 15 years following the relevant date for the purposes of running off their existing portfolio.
Head 10-3. Amendment of Regulations of 2018
Explanatory Note:
This Head adds a new regulation to the European Union (Insurance Distribution) Regulations 2018 that will establish a temporary domestic runoff regime for certain insurance intermediaries for 15 years. In that respect, it provides that intermediaries which meet certain conditions shall be deemed to be authorised for 15 years following the relevant date for the purposes of running off their existing portfolio.
Head 10-4. Requirement for Central Bank to make a report to Minister
Explanatory Note:
This Head adds a review clause to require that the Central Bank make a report to the Minister at the end of year 12 setting out its view on the run-off regime covering both insurance undertakings and persons carrying on insurance distribution business. This report should consider a number of principles and policies, including the need to protect policyholders, the number of firms remaining in run-off, and the nature of the policies in question.
