S.I. No. 29/1996 - Investment Intermediaries Act, 1995 (Bonding of Intermediaries) Regulations, 1996.

1. I/We, (name of authorised investment business firm....................................), hereinafter in this Bond referred to as "the Investment Business Firm", of (address of Investment Business Firm's principal place of business...................................), hereby undertake and acknowledge myself/ourselves bound to make available to the person nominated or approved of by the Supervisory Authority, being the relevant supervisory authority for the Investment Business Firm for the purposes of the

Investment Intermediaries Act, 1995

, hereinafter in this Bond referred to respectively as "the Nominee" and "the Supervisory Authority", such sum of money as the Nominee may demand in accordance with clause 3 of this Bond but not exceeding £

(value of the Bond) to be applied in accordance with clause 4 of this Bond.

2. This Bond shall be valid for month/months, day/days, commencing on the

day of (month and year) and expiring on the day of (month and year).

3. IT IS AGREED that, subject to subclause (2) of clause 4, where during the period of validity of this Bond or any previous Bond effected by the Investment Business Firm under the

Investment Intermediaries Act, 1995

(Commencement and Bonding of Intermediaries) Regulations, 1996, hereinafter in this Bond referred to as "the Regulations", or under the

Insurance Act, 1989

. there is or has been an inability or failure on the part of the Investment Business Firm to meet its financial obligations in relation to any sum of money received by the Investment Business Firm from, or on behalf of, its clients in respect of investment business services for the purposes of the

Investment Intermediaries Act, 1995

, hereinafter in this Bond referred to as "investment business", or insurance business for the purposes of the

Insurance Act, 1989

, hereinafter in this Bond referred to as "insurance business", during such period, the Surety will make available the sum of money referred to in clause I of this Bond upon demand being made on the Surety in respect thereof by the Nominee.

4. (1) Any sum of money made available to the Nominee under this Bond shall be applied by the Nominee—

(

a

) subject to subclauses (2) and (3) of this clause, for the benefit of any client of the Investment Business Firm who has incurred loss or liability because of the inability or failure of the Investment Business Firm to meet its financial obligations in relation to any sums of money received by the Investment Business Firm from, or on behalf of, that client in respect of investment business services for the purposes of the

Investment Intermediaries Act, 1995

, and insurance business for the purposes of the

Insurance Act, 1989

; and

(

b

) to indemnify, with the consent of the Supervisory Authority and up to such sum as may be specified by the Supervisory Authority the Nominee in respect of such reasonable expenses as are incurred in carrying out the functions referred to in paragraph (

a

) of this subclause.

(2) Subject to subclauses (3) and (4) of this clause, to the extent that loss or liability arises in respect of insurance business, the Nominee shall apply that proportion of the sum of money made available under this Bond for the benefit of any client of the Investment Business Firm who has incurred loss or liability because of the inability or failure of the Investment Business Firm to meet its financial obligations in relation to any sums of money received by the Investment Business Firm from, or on behalf of, such client in respect of insurance business which bears to the sum of money made available under this Bond the same proportion that the loss or liability suffered by clients of the Investment Business Firm in respect of insurance business bears to the total loss or liability suffered by clients of the Investment Business Firm in respect of both insurance business and investment business.

(3) To the extent that loss or liability arises in respect of insurance business, the sum of money to be applied in respect of such loss or liability shall be the amount of the insurance bond which the Investment Business Firm would have been obliged to hold but for Regulation 3 of the Investment Intermediaries Act. 1995 (Bonding of Investment intermediaries) Regulations. 1996 or the amount of the loss or liability arising in respect of insurance business, whichever is the lesser.

(4) The sum of money to be applied in respect of loss or liability incurred by clients in respect of insurance business shall be reduced by the amount A x B + C, where A is the amount of the expenses referred to in subclause 1(

b

) of this clause, B is the amount of the loss or liability arising in respect of insurance business and C is the amount of the total of the loss or liability arising both in respect of insurance business and in respect of investment business.

(5) Subclause (1)(

a

) of this clause shall not apply to any sum of money as is referred to therein where any proceeds of a previous bond effected under the Regulations (including, as the case may be, any proceeds of the guarantee provided in respect of it) or under the

Insurance Act, 1989

(including, as the case may be. any proceeds of the guarantee provided in respect of it) have been applied for the benefit of the client referred to in the said subclause (1) (

a

) with respect to the said sum of money.

5. IT IS A CONDITION of this Bond that the Nominee will repay to the Investment Business Firm such part of any sum of money made available to the Nominee under clause 3 of this Bond as shall not be expended for the purposes mentioned in paragraph (

a

) or (

b

) of clause 4(1) of this Bond.

GUARANTEE IN RESPECT OF INVESTMENT BUSINESS FIRM'S OBLIGATIONS UNDER FOREGOING CLAUSES.

6. We, (name of person providing guarantee........................................), hereinafter in this Bond referred to as "the Guarantor", having our registered office at..............................................., at the behest of the Investment Business Firm, hereby guarantee that there will be made available by the Investment Business Firm the sum of money referred to in clause I of this Bond upon demand being made on the Investment Business Firm in respect thereof in accordance with clause 3 of this Bond.

7. Any demand under the foregoing guarantee shall be made on the Guarantor by the Nominee in accordance with the Regulations.

8. Clause 4 of this Bond shall apply to the application of any sum of money made available under the foregoing guarantee to the Nominee.

9. IT IS A CONDITION of the foregoing guarantee that the Nominee will repay to the Guarantor such part of any sum of money made available to the Nominee under the guarantee as shall not be expended for the purposes mentioned in paragraph (

a

) or (

b

) of clause 4 (1) of this Bond.

10. The Guarantor undertakes—

(

a

) to issue to the Investment Business Firm a certified copy of this Bond, and

(

b

) in the event of the Investment Business Firm, on the expiry of this Bond, not presenting a new bond to the Guarantor for the purpose of securing a guarantee in respect of the Investment Business Firm's obligations thereunder, to notify the Supervisory Authority and the Minister for Enterprise and Employment in writing of that fact not later than seven days after such expiry (without assuming any duty of care to the Nominee or clients of the Investment Business Firm to ensure that the Supervisory Authority and the Minister for Enterprise and Employment is so notified).

SIGNED BY (signature of Investment Business Firm or member of Investment Business Firm, or, where the Investment Business Firm is a registered company, signature of an officer of the company together with the seal of the company)

Dated this ..................... day of............................................................ ........................... (month and year)

SIGNED BY (signature of an officer of Guarantor together with seal of the Guarantor)

FOR AND ON BEHALF OF (name of Guarantor)

Dated this ....................... day of............................................................ ........................ (month and year)

GIVEN under my Official Seal, this 9th day of February, 1996.

RUAIRÍ QUINN,

Minister for Finance.

EXPLANATORY NOTE.

These Regulations specify the form of bond to be used by authorised investment business firms pursuant to

section 51

of the

Investment Intermediaries Act, 1995

, including the form of a single bond under section 51 (5) (

e

) of that Act which satisfies the requirement to be bonded under Part IV of the

Insurance Act, 1989

.

Section 51 of the Investment Intermediaries Act was commenced in respect of certain categories of investment business firm and certain categories of investment business services by the

Investment Intermediaries Act, 1995

(Commencement) (No. 2) Order, 1996, which was signed by the Minister for Finance on 9 February 1996 and comes into effect on 11 March 1996.

These Regulations will come into effect on 11 March 1996.

S.I. No. 29 of 1996.

INVESTMENT INTERMEDIARIES ACT, 1995 (BONDING OF INTERMEDIARIES) REGULATIONS, 1996.

I, RUAIRÍ QUINN, Minister for Finance, in exercise of the powers conferred on me by

section 51

of the

Investment Intermediaries Act, 1995

(No. 11 of 1995), hereby make the following Regulations