What about a firm from another member state who operates in the Stock Exchange? What records is that firm obliged to keep in the State? Are they obliged to keep any?
SECTION 27.
Question proposed: "That section 27 stand part of the Bill."
Irrespective of where Irish or foreign companies operate, there are specific records and books that must be kept and audited on a regular basis. In addition to that, the Bill enables the Central Bank at any stage to make further additions to that in terms of further records from the point of view of satisfying the competent regulatory authority that everything is above board. There is also provision within the Bill for regular auditing, and in some cases, for a second audit if required.
I am referring to companies from another member state who are operating in our exchange. What records must a firm keep under this jurisdiction? I appreciate that they will have to keep records in their jurisdiction.
Under the ISE Services Directive, its own competent home authority will do the regulation and supervision and must be satisfied. There are standard procedures with book and record requirements so that the policing, monitoring and supervision will be done in the home company.
What length of time are they referring to?
The general understanding is that there must be a minimum period of retention of five years for records and books.
Is the competent authority in another member state obliged to act immediately when requested by our authority, the Central Bank?
Yes. That is one of the kernel provisions of the directive. One matter that will become evident when we start to discuss that legislation is that there will be an instantaneous reaction on the part of the other country once the request comes from this country or vice versa.
Question put and agreed to.