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Financial Institutions (Amendment) Act 2013

SOLOMON ISLANDS

FINANCIAL INSTITUTIONS (AMENDMENT) ACT 2013

(NO. 6 OF 2013)

PASSED by the National Parliament this 29th day of July 2013.

(This printed impression has been carefully compared by me with the Bill passed by Parliament and found by me to be a true copy of the Bill)

Taeasi Sanga (Mrs)
Clerk to National Parliament

ASSENTED to in Her Majesty's name and on Her Majesty's behalf this 10^th day of August 2013.

Sir Frank Utu Ofagioro Kabui
Governor-General

Date of Commencement: see section 1

AN ACT TO AMEND THE FINANCIAL INSTITUTIONS ACT 1998 TO PROVIDE FOR THE ISSUANCE OF INTERIM LICENCES TO PERMIT APPLICANTS FOR LICENCES TO CARRY ON BANKING BUSINESS PENDING ACCEPTANCE OR REJECTION OF THEIR APPLICATION

ENACTED by the National Parliament of Solomon Islands.

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ARRANGEMENT OF SECTIONS

1. Short title and commencement
2. Section 5 (7A) repealed and replaced

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FINANCIAL INSTITUTIONS (AMENDMENT) ACT 2013

Short title and commencement

1. This Act may be cited as the Financial Institutions (Amendment) Act 2013 and shall come into force on such date as the Minister may appoint by notice in the Gazette.

Section 5(7A) repealed and replaced

2. Section 5 of the Financial Institutions Act 1998 is amended by repealing subsection (7A) and replacing it with the following subsections—

"(7A) The Central Bank may, within 60 days after receipt of the application, information and documents referred to in subsection (7), issue an interim licence to permit the applicant to carry on banking business for a period of 6 to 12 months from the date of issue, subject to such terms and conditions as may be specified in the licence.

(7B) Where the Central Bank issues an interim licence to an applicant under subsection (7A), the time limit in subsection (7) ceases to apply to the application but the Central Bank must, before the expiry of the interim licence, either —

(a) issue a licence under subsection (7) to permit the applicant to carry on banking business subject to such terms and conditions as may be specified in the licence; or

(b) inform the applicant that its application is refused.

(7C) The Central Bank may not issue a licence under subsection (7) or an interim licence under subsection (7A) unless it is satisfied in respect of the matters set out in subsection (5) and, where the applicant is a foreign financial institution, the matters set out in subsection (6).".

(7D) For avoidance of doubt, the Central Bank may, in the terms and conditions specified in an interim licence, restrict the business and activities that may be carried on by the licensee, notwithstanding the definition of " banking business" in section 2.".

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