(1) Where a licensed financial institution or proposed licensed financial institution is, or is about to become, a member of a corporate group in which —
(a) one or more members, in addition to the licensed financial institution or proposed licensed financial institution, are limited in their activities to those permitted to a member of a financial group; and
(b) one or more members are not limited in their activities to those permitted to a member of a financial group, the Central Bank may, in writing, direct the controlling shareholder of the licensed financial institution to engage in restructuring to form a financial holding company, such that —
(i) the licensed financial institution is directly controlled by the financial holding company, and
(ii) the other members that are limited in their activities to those permitted to a member of a financial group are either directly or indirectly controlled by the financial holding company or the licensed financial institution referred to in paragraph (a).
(2) In directing a restructuring under subsection (1) the Central Bank may require that the financial holding company be the direct subsidiary of the ultimate parent company of the corporate group.
(3) (a) Where the Central Bank directs a restructuring under subsection (1) it shall be carried out within 12 months of the date of the direction.
(b) The Central Bank may, in its discretion, extend this period by notice in writing to the local licensed financial institution to a maximum of 2 years from the date of the direction.
(4) A holding company that only controls, whether directly or indirectly, members of a financial group, at least one of which is a licensed financial institution, shall be a financial holding company.
(5) Where a financial holding company is required by this section, it shall apply to the Central Bank for a licence under section 36.
(6) This section shall not apply where a person who controls a licensed financial institution is itself a licensed financial institution under this Act.
(7) No person incorporated or formed under the laws of a jurisdiction outside the Currency Union may be a financial holding company unless that person is a financial institution or a financial holding company subject to authorisation, regulation and supervision in another jurisdiction that is satisfactory to the Central Bank.
(8) The Central Bank may exempt a foreign bank or other foreign company that is subject to regulation and supervision in another jurisdiction from the applicability of one or more of the provisions of this Act applicable to financial holding companies, if a foreign bank or other foreign company is subject to supervision and regulation that is satisfactory to the Central Bank, including supervision on a consolidated basis, in its home jurisdiction or another host jurisdiction in which it has substantial operations.