The Stock Exchange Bill is the first major legislation relating to the Stock Exchange in almost 200 years. It establishes the Central Bank as the regulatory authority for the Irish Stock Exchange, for any stock exchanges that may be established here in the future and also for the member firms of exchanges regulated under this Bill. The Bill also meets obligations under the European Union Investment Services and Capital Adequacy Directives in respect of stock exchange member firms. It does not deal with futures and options exchanges such as IFOX and FINEX. These are already regulated by the Central Bank under the Central Bank Act, 1989. It does not deal either with what I might describe as the companies side of the Stock Exchange, by which I mean matters like listing of companies and insider dealing.
The existing basic legislation for the Stock Exchange, the Stock Exchange (Dublin) Act, was enacted by the old Irish Parliament in 1799 and this is being repealed. That Act set up the Dublin Stock Exchange and established a system of regulation based on the stockbroker's licence. It also provided that the Exchange's gilt rules had to be approved by the Lords of His Majesty's Treasury, a role which was later taken over by the Lord Lieutenant and finally, and up to the present day, by the Minister for Finance. The present Bill replaces this somewhat rudimentary system of supervision with one that is entirely new, modelled on the existing legislation for regulating financial institutions and meeting international requirements for the regulation and supervision of stock exchanges and their member firms. The Central Bank as the supervisory authority would have substantial powers concerning both the initial authorisation of stock exchanges and member firms and their ongoing supervision.
I mentioned that this Bill replaces the Stock Exchange (Dublin) Act, 1799. The Act was passed in the year between two landmark events in Irish history, the Rebellion of 1798 and the Act of Union of 1800. The House may find it instructive to look back at the other legislation that was passed in 1799. There were several Acts dealing with the aftermath of the 1798 Rebellion, for example, the "Act for the suppression of the rebellion which still unhappily exists within this Kingdom, and for the protection of the persons and properties of His Majesty's faithful subjects within the same" and the "Act to better regulate the manufacture and sale of gunpowder within this Kingdom".
I note that there was an Act to impose "certain rates and duties on dwelling houses inhabited, according to the number of Windows or Lights therein respectively". Another piece of legislation from 1799 but which would be less likely to win favour with the Revenue Commissioners was the "Act for the Relief of Persons who have omitted, or may omit inadvertently, to pay certain Stamp Duties". Roads were also of concern in Ireland in 1799. There was an "Act for improving and repairing the road leading from Newcastle, in the County of Limerick, to the City of Limerick, and from thence to Charleville, in the County of Cork". Senators should be aware, however, that this legislation also provided for "erecting turnpikes thereon" for the collection of tolls.
The wars in Europe which followed the French Revolution and the threat of an invasion of this country from France obliged the Government to borrow heavily and one presumes that this put a lot of business in the way of stockbrokers at the time. Indeed Governments down through the years have continued to keep the stockbrokers busy. The newly established Dublin Stock Exchange began to operate in September 1799 and moved to the Commercial Buildings in Dame Street in November 1799, a building which is now owned by the Central Bank. Later of course the Stock Exchange moved to Angelsea Street where it has operated for over 100 years.
The Stock Exchange has served an important economic role down through the years, generating capital for industry and helping to meet the funding requirements of Governments. However, the passage of time and the enormous changes which have occurred since 1799, especially in the area of the financial markets, mean that an entirely new regulatory environment is now necessary for the Stock Exchange and its member firms. The scale and complexity of events in 1799 bear absolutely no comparison to those of 1995. For example, when the Act of Union came into effect in 1801, the funded public debt of Ireland stood at just less than £27 million; the national debt in Ireland is now moving towards £29 billion, an increase of over a thousand-fold.
Things have changed in other ways. Deregulation, the removal of exchange controls and rapid technological advance have had a dramatic impact on the financial sector. Financial supervision standards are being intensified. Within the European Union a new single market for financial services is being established. In these circumstances the need for new legislation to replace an Act nearly 200 years old is abundantly clear.
The new legislation also reflects the passage of two European Union directives. The Investment Services Directive, which must be provided for in national legislation by 1 July 1995 and will apply fully from 1 January 1996, requires member states to ensure a common standard of regulation for investment firms so as to allow such firms, once authorised by their home state, to trade freely in all the countries of the European Union. The related Capital Adequacy Directive sets out the levels of capital which investment firms must have in relation to their business. The Stock Exchange Bill will implement these two directives in respect of stock exchange member firms; further legislation, the Investment Intermediaries Bill, will be published shortly and this will implement the directives in respect of all intermediaries which are not member firms of an approved stock exchange.
The Investment Services Directive is based on EU-wide recognition of authorisations granted by the home member state and on the principle of prudential surveillance by the competent authorities in the home member state in accordance with that member state's rules. The directive incorporates parallel measures to those contained in the first and second banking directives, namely, conditions for granting authorisation to investment firms, vetting of main shareholders and provision for close collaboration among the supervisory authorities in the member states.
Irish law needs to be updated in order to meet the requirements of the Investment Services Directive. At present, the Irish Stock Exchange is supervised as part of the International Stock Exchange of the United Kingdom and the Republic of Ireland Limited. This supervision is carried out under the rules of that exchange and also under local rules which apply to the Irish unit only and are agreed by the Minister for Finance. While the Minister for Finance approves rule changes proposed by the Irish Stock Exchange, he has no right himself to initiate rule changes which he might consider desirable. Otherwise the main requirement of the Stock Exchange (Dublin) Act, 1799, is that individuals selling gilts on commission have a licence to do so. It is clear that these legislative arrangements need substantial revision in order to conform with the EU Investment Services Directive. The Stock Exchange Bill provides that revision. I should mention that the Bill has been the subject of consultation with the European Monetary Institute which has indicated no difficulties with its terms. Copies of the institute's opinion are available.
Let me now turn to some major points I want to make about the Bill. The first is that the Central Bank should be the new regulatory authority for the Irish Stock Exchange and for its member firms. This decision is both logical and practical. The bank already has considerable expertise in regulation. It is the regulatory authority for all Irish licensed banking institutions and its remit has been extended to the building societies in recent years. In addition, the Central Bank Act, 1989, gave the bank supervisory responsibility in relation to exchanges concerned with the selling of futures and options, such as the IFOX and now the FINEX exchanges. The bank also plays an important role in the regulation of financial service activities conducted from the highly successful International Financial Services Centre.
The present Bill, therefore, builds on a significant body of national law relating to the regulation of financial institutions and exchanges. The bank has the expertise, the competence and the track record to supervise stock exchanges and their member firms. The personnel of the bank have been actively preparing for their new role and have made a substantial contribution to the preparation of this Bill.
The second point I want to highlight is that, because this area is of major interest to the public, the Bill provides a significant role for the Minister for Finance and the Minister for Enterprise and Employment. Clearly, it is appropriate that, where necessary, the Ministers who have responsibility in this area should be able to set parameters within which the bank would operate. The Minister for Finance has a very direct involvement in relation to the financial services sector; the Minister for Enterprise and Employment has responsibility for company law issues and has, of course, a particular interest in the access of Irish firms to capital. Accordingly, section 28 of the Bill provides that the Central Bank may be given guidelines by the Minister for Finance with the consent of the Minister for Enterprise and Employment, to assist the bank in administering the system of regulation. Such guidelines will, of course, only be issued where there is a perceived need to issue them in the public interest. Other sections also provide a role for the two Ministers and I will refer to these when I am discussing the details of the Bill.
It is important to stress, however, that apart from some relatively minor modifications, there will be no change in the existing responsibilities of my colleague, the Minister for Enterprise and Employment, in relation to company law matters, corporate governance or in listing matters delegated to the Irish Stock Exchange.
A fundamental objective of the Bill is to provide the necessary measures without being excessive. It is designed to ensure that the Irish Stock Exchange will be regulated to the highest standards, but it must also be able to function efficiently in an increasingly complex environment. Accordingly, the Bill does not supersede the highly developed supervision systems which the Exchange already operates to ensure market surveillance. However, it gives the Central Bank all the necessary powers to monitor and supervise the Exchange's surveillance of the operations of its member firms and to lay down conditions and requirements which the Exchange and its member firms must meet.
Connected with this is the requirement that stock exchanges must be more open to the concerns of users and the public than has been the case up to now. Accordingly, the Bill provides that the board of directors of an exchange will have to be broadly based and that the composition of the board will have to strike a balance between the interests of the member firms and users of the exchange and the public interest. Also, there will have to be enough independent members on the board to promote the protection of investors and the maintenance of proper standards. In addition, the chairperson of the board of the Exchange will have to be independent of the Stock Exchange and of its member firms. Finally, the board or a sub-committee of the board must be able to consider disciplinary matters and complaints against member firms and any such sub-committee must include at least one independent board member.
The Bill sets out requirements about the composition of the board of an exchange for a number of reasons. As I pointed out earlier, the role of the Irish Stock Exchange has changed dramatically since the original legislation setting it up was passed in 1799. The Exchange then was primarily a gathering of stockbrokers. Nowadays, however, the Exchange is far more. It acts as a regulatory authority for the companies for which it provides quotations and it is a competent authority for the purposes of the EU Insider Dealing and Listing Directives. It is also a marketplace which brings together not only the broker and the investor, but also the companies which are quoted on the Exchange. All of these different interests have a legitimate interest in the Exchange and it is proper that they should all be represented on the board of the Exchange, as the Bill provides.
I emphasise that it will be a matter for the Exchange itself to nominate these independent members and the independent chairperson, subject to satisfying the Central Bank as to their competence and probity. Given that the Exchange is a very small body, consisting of only ten member firms, and that it has a key role in the economy, it is also proper that its board should have a significant independent element and this is represented by the requirements that the board have independent members, that it be chaired by an independent chairperson and that there be an independent presence at board level hearings on disciplinary matters. These requirements will help to enhance confidence in the Exchange among investors and potential investors and among the public at large and of course confidence will be a crucial factor when the Exchange effectively relaunches itself after its forthcoming separation from London.
I do not propose to comment on each section, but rather to highlight for Members the main features of each Part of the Bill. It is divided into seven Parts. The first deals with general matters, while Parts II and III deal respectively with the approval of stock exchanges and with the authorisation of member firms. These two Parts naturally contain many similar provisions. Part IV contains detailed regulatory provisions governing stock exchanges and member firms. Part V concerns the duties of auditors, while Part VI deals mainly with large transactions in holdings of stock exchanges and member firms, with codes of conduct and with requirements relating to client moneys. Part VII covers enforcement, offences and penalties.
Part I contains standard general provisions about such matters as short title, commencement, repeals and expenses. In particular, section 2 empowers the Minister for Finance to appoint a day or days for the coming into effect of the Act or portions of it. As the Members of the House will be aware, the Irish Stock Exchange will be separating from the International Stock Exchange of Great Britain and the Republic of Ireland Limited, of which it has been a part for just over twenty years, once the Bill comes into effect. I expect that the Bill will be brought into effect on 1 July next.
Section 3 sets out the definitions used in the Bill. The terms used for stockbrokers is "member firm" and section 3(4) ensures the term can include a partnership. The definition of "investment instruments" goes well beyond the range of instruments normally traded on the Stock Exchange because the legislation is intended to cover all the investment activities of stockbrokers, who may well deal in unit trusts and other forms of investment. The term "investment instruments" is therefore defined widely. The definition of a stock exchange excludes futures and options exchanges which are regulated under the Central Bank Act, 1989.
Part II deals with the approval and continuing supervision of stock exchanges. Section 8 makes it an offence to establish or operate a stock exchange which has not been approved by the Central Bank. Section 9 sets out the detailed requirements relating to approval. These include satisfying the bank that the memorandum and articles of association and the rules of the proposed exchange are satisfactory and that the directors, managers and qualifying shareholders are suitable persons.
There are a number of aspects of the approval of an exchange. An exchange will be obliged to establish and maintain procedures to investigate complaints against both itself and its member firms. In addition the board of an exchange will have to be broadly based and be composed to secure a balance between the interests of the different member firms and users of the stock exchange and the public interest. It will be a matter for the Central Bank to satisfy itself that the board of the exchange has the required balance between members and non-members. The Bill also requires, for the reasons I set out earlier, that the chairperson of the exchange be independent of the exchange and its member firms.
Also, the rules of a stock exchange must require a report to be drawn up on any disciplinary proceedings conducted by the exchange. That report must be sent to the Minister for Finance and the Minister for Enterprise and Employment if the Minister for Finance, with the consent of his colleague, asks to see it. The Minister for Finance will be entitled to lay such a report before both Houses of the Oireachtas if he and the Minister for Enterprise and Employment think it proper to do so having due regard to the exigencies of the common good and the rights of any person referred to in the report.
I believe I will find the members of this House in agreement with me on the need for greater transparency in the way stock exchanges are run and in their disciplinary proceedings. The provisions in the Bill will ensure that transparency, while allowing the exchange to continue to regulate its affairs on a day to day basis under the overall supervision of the Central Bank.
Section 10 provides that the Irish Stock Exchange will be deemed to be approved and will continue to operate, under the supervision of the Central Bank, during the interim period while it is seeking approval from the bank under this Bill. Any changes to the memorandum and articles of association of an exchange or to its rules will have to be approved by the Central Bank and the bank will be able to require such changes.
Where the bank refuses to approve a stock exchange or to approve changes to its rules or memorandum and articles of association, the exchange will be entitled to appeal that decision to the Minister for Finance who, with the consent of the Minister for Enterprise and Employment, may grant the appeal. Where the Minister grants the appeal, notice of the fact must be published in Iris Oifigiúil.
The Central Bank may make its approval of exchanges subject to conditions either at the time of approval or afterwards. Such conditions must not contravene guidelines which may be issued by the Minister for Finance with the agreement of the Minister for Enterprise and Employment and which must be published in Iris Oifigiúil. The exchange concerned will have the right to appeal a requirement or condition to the High Court.
Section 14 sets out the circumstances in which the bank may revoke the approval of a stock exchange. This will normally involve an application to the High Court for an order revoking approval. Section 15 obliges an approved stock exchange to maintain such books and records for such length of time as the bank may specify. Failure to comply with this obligation will be an offence.
Part III opens with section 16, which makes the Central Bank the competent authority in this State in respect of member firms for the purposes of the Investment Services and Capital Adequacy Directives. The bank will thus be responsible for supervising all the investment activities of member firms, not just their stock exchange activities.
The rest of Part III deals with the authorisation and regulation of member firms. Section 17 makes it an offence to be a member firm of an approved stock exchange, unless authorised by the Central Bank or by a competent authority in another member state. Firms wishing to become authorised must apply to the Bank.
Any changes to the memorandum and articles of association of a member firm will have to be approved by the Central Bank and the bank itself will be able to require such changes. Where the bank refuses to authorise a member firm, or to approve a change a member firm wishes to make to its memorandum or articles of association, the member firm can appeal the bank's decision to the High Court.
Section 21 provides that the existing member firms of the Irish Stock Exchange will be able to continue to operate but they will, of course, have to apply for authorisation to the Central Bank; they will stand approved, and be subject to Central Bank regulation, while the authorisation process is going on. Like stock exchange approval, this process will include satisfying the bank as to the probity and competence of each of the managers and directors and the suitability of the larger shareholders.
In addition, in the light of the proposed introduction of market making in Irish Government gilts later this year by the National Treasury Management Agency, section 21 allows market making firms from abroad to do business here under the supervision of the Central Bank up to the end of the year, by which date they will be authorised by their home competent authority under the EU Investment Services Directive.
Section 22 enables the bank to make its authorisation of a member firm subject to conditions, either at the time of approval or afterwards. Such conditions must not contravene guidelines issued by the Minister for Finance, with the agreement of the Minister for Enterprise and Employment, and published in Iris Oifigiúil. A member firm will have the right to appeal to the court against the imposition of any condition.
Section 24 sets out the circumstances in which the authorisation of a member firm can be revoked; as with exchanges, this will normally involve an application to the court for an order revoking the authorisation.
Other provisions of Part III empower the bank to set out requirements as to the composition of a member firm's assets and liabilities so as to ensure the firm can meet its liabilities and to require an authorised member firm wishing to establish a branch in another EU member state to give details of the proposed branch to the bank. The bank may permit or prevent establishment of the branch; if the latter, the member firm concerned may appeal the bank's decision to the High Court. Finally, in Part III, section 27 obliges a member firm to keep books and records; failure to do so will be an offence.
Part IV of the Bill deals with regulation and supervision. Section 28 imposes a general obligation on the bank to administer the system of regulation of approved stock exchanges and authorised member firms in accordance with the Act in order to promote the proper and orderly regulation of such exchanges and member firms and the protection of investors. As I mentioned earlier, the bank must carry out this function subject to any guidelines which may be issued to it by the Minister for Finance with the consent of the Minister for Enterprise and Employment.
Section 29 empowers the bank to give directions to stock exchanges and member firms, both generally in the interests of proper regulation or investor protection and more specifically where it becomes apparent that a member firm is getting into difficulties. The bank will be entitled to apply to the High Court for an order confirming a direction where it believes that the direction is not being complied with. Detailed provisions relating to directions are included in the First Schedule to the Bill.
Sections 31 and 32 relate to advertising by stock exchanges and member firms and give the Central Bank power to impose conditions and requirements relating to advertisements. An investment agreement will be unenforceable if it is made on foot of an advertisement which contravenes a direction from the bank, unless the advertisement did not have a bearing on the agreement. Both the bank and the Minister for Finance may require a stock exchange or member firm to display specified information on their premises.
Part V places significant obligations on the auditors of stock exchanges and member firms. Auditors are well placed to assess what is going on in a firm and the Bill requires auditors to inform the bank of any material irregularity which emerges in the course of their auditing work, including anything which would give reason to believe that a member firm has breached stock exchange rules or that it has contravened any condition or requirement imposed by the bank. An auditor who intends to resign or not to seek re-election must report that fact to the Central Bank. It will be an offence to mislead, deceive or refuse to co-operate with an auditor.
Part VI of the Bill opens with a provision which also deals with auditors. Section 36 enables the Central Bank to appoint a second auditor where it has a substantial concern about the audited accounts of an approved stock exchange or member firm. This will allow the Central Bank to carry out further investigation of matters which arise in the course of the first audit.
Section 37 contains provisions relating to disqualification from employment. Where, on application by the Central Bank, the High Court finds that a person is not suitable on grounds of probity to be an officer or employee of a stock exchange or member firm, it may direct the employer to dismiss that person. Where the court finds that a person is incompetent, it may direct that the person concerned be removed from a particular position, be suspended or dismissed. A person who is the subject of such a direction may not be employed by a stock exchange or member firm, or by any other entity supervised by the Central Bank, without the bank's consent. A person who accepts employment in contravention of such a direction will be guilty of an offence.
Obviously, these are considerable powers but it is important to ensure that persons who are entrusted with the safekeeping and prudent management of the funds of others are above reproach. Senators will note that a direction in respect of any such person will be for the courts to decide and that the person concerned may apply to the courts at any time for the direction to be revoked and may appeal to the court against any refusal by the Central Bank to consent to their re-employment.
Section 38 sets out the broad parameters for the codes of conduct which will govern how member firms do business with their clients. This will normally be a matter for the rules of the exchange, but the Central Bank may draw up a code of conduct if an exchange does not draw up and maintain its own rules of conduct. Stock exchange rules of conduct must meet the parameters laid down in the section as regards fair and honest dealing, acting with due care and diligence and making adequate disclosure of relevant information to clients. The Central Bank will be responsible for supervising compliance with rules of conduct by member firms operating here which have been authorised in another member state.
Sections 39 to 49 deal with acquiring transactions, that is to say, major changes in the ownership or control of exchanges and their member firms. The purpose of these provisions is to enable the Central Bank to prevent undue or excessive influence being gained over a stock exchange or member firm unless the bank is satisfied that that influence will not be harmful.
Section 51 provides that a member firm must inform a client of the details of any investor compensation scheme. The Irish Stock Exchange already operates a compensation scheme but I am not making specific provision in this Bill for compensation. A draft Investor Compensation Directive is being finalised at present at EU level and legislation will be required to implement the requirements of that directive in due course.
Section 52 deals with the treatment of client funds and investment instruments by member firms. This is obviously a very important section of the Bill. The section will allow the Central Bank to ensure that money and investment instruments belonging to clients which are held or controlled by a member firm are properly accounted for and that both the money and instruments and the records relating to them can be easily located and identified at all times while in the member firm's custody. The section allows the Central Bank to set out requirements under which member firms may hold money or investment instruments belonging to clients. For example, the Central Bank will be able to regulate how member firms operate client accounts, in particular whether the firm can lodge money other than client account money into such accounts. This provision will allow the Central Bank to ensure that client money is segregated from that of the member firm. In addition to enabling the bank to set out such requirements, the section specifically provides, on pain of an offence, that client accounts must be designated "Section 52" accounts in the member firm's records — this will allow the Central Bank's authorised officers to identify such accounts easily. It will also be an offence for a member firm not to keep client money with an institution which has been approved of by the Central Bank and not to keep books and records in respect of client money and investment instruments and to have them audited. The section also includes a provision to ensure that, in the event that a member firm is liquidated or dissolved, money or investment instruments belonging to clients will not be available to pay the member firm's debts.
Section 53 provides for exemptions from liability for the Central Bank and for the Stock Exchange.
Section 54, the last section of Part VI, relates to failed stock exchanges and member firms which did not comply with the obligations in the Bill to maintain proper books and records and to safeguard clients' funds. Where the High Court considers that such noncompliance contributed to the failure, it may declare an officer of the stock exchange or member firm personally liable for all or part of the failed entity's debts. Similar provisions exist in company law and in the Building Societies Act, 1989.
Part VII of the Bill sets out the powers of authorised officers of the Central Bank, of bank-appointed inspectors and of inspectors appointed by the High Court. Authorised officers of the Central Bank will be empowered to enter premises to inspect documents and require explanations of such documents. If a person refuses to comply with a request from an authorised officer, the court can be asked to make an order as to the information to be provided. Similar provisions are included in the Insurance Act, 1989, in relation to officers authorised by the Minister for Enterprise and Employment; an authorised officer under this Bill will in addition be entitled to request a report on aspects of the business of an exchange or of an exchange's member firm.
Sections 57 to 63 provide for the High Court, on the application of the Central Bank, to appoint an inspector to investigate the affairs of a stock exchange or a member firm. An inspector appointed by the court will have wideranging powers of investigation, including, for example, the power to examine people on oath. The High Court may publish, with or without omissions, the report of an inspector appointed by it. A court inspector's report will be sent in full to the Minister for Finance and the Minister for Enterprise and Employment, who may decide to lay it before the Houses of the Oireachtas.
Section 64 provides for the appointment of an inspector by the Central Bank to investigate particular matters relating to an exchange or member firm, including their compliance with any requirements of this or any other Act or with stock exchange rules or codes of conduct. The Central Bank may publish, in whole or in part, the report of an inspector appointed by it and must forward any such report in full to the Minister for Finance and the Minister for Enterprise and Employment, who again may decide to lay it before the Oireachtas.
Section 65 enables the Central Bank to set up a committee to determine whether there has been a breach by a stock exchange or member firm of Central Bank conditions or requirements. Such a committee will have three members drawn from a panel of seven to be nominated by the Minister for Finance with the consent of the Minister for Enterprise and Employment. If it finds that there has been a breach, the committee may issue a reprimand and/or require payment of up to £500,000 by the exchange or member firm concerned to the Central Bank. It should be noted that this mechanism will only apply where the exchange or member firm agrees and an exchange or member firm may appeal the determination of a committee to the court.
Where an exchange or member firm does not want the matter settled by a committee, the Central Bank may apply to the High Court to make a determination and the court may issue a reprimand and/or require payment of up to £500,000 to the Central Bank by the exchange or member firm concerned. Detailed provisions relating to the committees appointed under section 65 are contained in the Second Schedule. Such committees offer a mechanism whereby breaches of Central Bank conditions and requirements can be speedily determined without the expense — on either side — of a High Court hearing.
Sections 66 and 67 provide for an application for a search and seizure warrant by an authorised officer and for the admissibility of an inspector's report as evidence in civil proceedings, while sections 68 and 69 provide for legal professional privilege and for confidentiality of documents. Section 70 sets out the penalties for offences committed under the Act. The maximum penalty will be £1 million or ten years' imprisonment or both.
Finally, I should mention that the Irish Stock Exchange has, of course, been extensively consulted in the preparation of this Bill. I would like to take this opportunity to acknowledge the constructive contribution made by the Stock Exchange throughout this process.
The Stock Exchange Bill marks a radical departure for the regulation of stock exchanges and their member firms in Ireland. It replaces 200 years old legislation with a modern regulatory framework. It establishes the Central Bank as the regulatory authority, so bringing to bear the bank's wide experience of regulating banks, building societies and futures and options exchanges.
It provides a significant role for the two Ministers closely involved with the Stock Exchange, so ensuring that the concerns of the Oireachtas can find expression in the regulatory process as the public interest requires. It enables the Stock Exchange to continue to regulate its own affairs, but under the overall supervision of the Central Bank which will be equipped with all the necessary powers to carry out its functions.
The Bill also meets obligations in respect of Stock Exchange member firms arising from the European Union Investment Services and Capital Adequacy Directives. It also ensures that the Stock Exchange will be more open and transparent in the conduct of its business than has been the case up to now and that its board of directors will be representative of the users of the exchange and the public interest as well as of its members. I commend the Bill to the House and I look forward to hearing the contributions of Members.
