I move amendment No. 6:
In page 9, line 36, to delete "occur.'." and substitute the following:
"occur.
(1C) A person who was carrying on the business referred to in subsection (1) before the commencement of section 5 of the Insurance Act, 2000, shall, not later than 60 days after such commencement, give notice to the Minister, in such form and manner and including such information as may be prescribed, of the person's intention to continue to carry on that business, and subsection (1B) shall apply to a notice under this subsection as it applies to a notice referred to in subsection (1)(b) with any necessary modifications.
(1D) A person who contravenes subsection (1)(b) or who contravenes subsection (1C) and continues to carry on the business referred to in that subsection shall be guilty of an offence.
(1E) The Minister may direct a company in writing to cease carrying on the business referred to in subsection (1) either indefinitely or for such period as he may specify in the direction–
(a) if the company contravenes subsection (1)(b) or (1C),
(b) information that is, to the knowledge of the company, false or misleading is included in a notice of the company under subsection (1)(b) or (1C),
(c) the Minister considers that, having regard to the risks insured or proposed to be insured by the company, the company is under capitalised,
(d) the Minister considers that one or more or the directors or the senior managers of the company are not suitably qualified to direct and manage the business aforesaid of the company,
(e) the Minister considers that the company has not a sufficient number of suitably qualified employees in the State to carry on effectively the business aforesaid, or
(f) the Minister is in possession of information showing that the company has engaged in unlawful activities in or outside the State.
(1F) Where the Minister proposes to give a direction to a company under subsection (1E)–
(a) he shall notify the company in writing of the proposal and shall include in the notification a statement of the reasons for the proposal,
(b) the company may, within 28 days of the date of the notification, make submission in writing to the Minister in relation to the proposal,
(c) the Minister shall, before deciding to give a direction and determining its terms, take into consideration any representations made to him pursuant to paragraph (b).
(1G) Subsections (5) to (9) of section 18 shall apply to a direction under this section as they apply to a direction under that section with any necessary modifications.'.".
This amendment inserts four new subsections in section 5 which deals with reinsurance. The purpose of the new subsections is to give the Minister powers to take administrative steps to deal with any existing Irish reinsurance companies that might be, have been or will be the subject of complaints from either Irish or international sources. This is necessary to protect Irish and international consumers and to protect Ireland's reputation as a well regulated financial services centre.
Subsection (1C) provides a transitional period for existing reinsurance companies of 60 days to return the notice required under subsection (1)(b). Subsection (1D) provides that failure to provide the requisite notice to the Minister while carrying on reinsurance business is an offence in law. Subsection (1E) provides that the Minister may give a direction to a company to cease writing reinsurance business in the absence of compliance with the notification provisions. Subsection (1G) provides an appeal mechanism to companies writing such business.
The purpose of the amendment is to protect consumers of reinsurance products, to ensure that there is a right to deal with reinsurance companies and that the Department can take action at any particular time if information is provided to it.