Minister for Trade and Commerce Michael Ahern publishes Investment Funds, Companies and Miscellaneous Provisions Bill 2006

Increase of audit exemption thresholds

The Bill proposes to increase audit exemption limits for turnover and balance sheet totals thereby allowing more companies avail of the audit exemption. It is proposed to increase the exemption thresholds to the maximum permitted by the EU (i.e. €7.3 million for turnover and €3.65 million for balance sheet). This is in line with a recent recommendation of the Small Business Forum (April 2006) which pointed out that this would bring Ireland into line with the UK and a number of other EU Member States that allow the maximum limit. This change will have a significant impact in terms of lessening the regulatory burden on small business and is therefore seen as a priority measure in terms of maintaining our competitiveness generally.

Dematerialisation of securities certification

The power to provide by regulations for mandatory dematerialisation (i.e. holding in electronic form) of the securities of companies listed on a regulated market is provided for in the Bill in addition to allowing the regulations to provide for any necessary consequential provisions to implement this requirement. This will, inter alia, bring Irish practice into line with international norms; should assist greater ownership of securities listed on the Irish market by foreign investors, and is likely to be necessary to facilitate the continued settlement of securities transactions for the market through the CREST settlement system, which is moving towards 100% electronic settlement.

Guarantor liability for prospectus content

It is proposed to amend the law relating to prospectuses in order to limit the obligations of a guarantor in respect of statements included in, or omitted from, a prospectus relating to non-equity securities, apart from those that relate to the guarantor or the guarantee.

Transparency Directive

The Bill contains provisions which are designed to facilitate the smooth and effective transposition of the EU Transparency Directive which is due to be transposed into Irish law by January 2007. Included are provisions which need to be made in primary law allowing the Competent Authority to make rules and those relating to civil and criminal liability and sanctions.

Takeovers Directive

It is proposed to amend the Takeover Panel Act 1997 to allow the Takeover Panel to make provision in their rules to give effect to EU law in the area. The need for this amendment to be made in primary law only arose quite recently in the context of the transposition of the EU Takeovers Directive which came into effect on 20 May 2006.

Consumer

It is necessary to amend the Consumer Information Act 1978 to allow for the appointment of a person to perform the functions of the Director of Consumer Affairs for a period of more than 6 months. The need for this arises as a result of the resignation of the previous incumbent and in order to allow the functions of the Director to continue to be carried out by a temporary appointee until the National Consumer Agency is established on a statutory basis.

ENDS

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