Local licensee to limit risk

(1) Where a local licensee or proposed local licensee is or will be a member of a related group and no other member of the related group is limited in its activities to those permitted to a member of a financial group, the Central Bank may require the licensee to take such measures as, in the opinion of the Central Bank, are appropriate to limit the risks to which the licensee may be exposed from other members of the related group. (2) Without limiting the generality of sub-section (1), the Central Bank may, by order or directive– (a) restrict or prohibit credit exposures by the local licensee to the other members of the related group, or to any person that directly or indirectly controls the holding body corporate of the related group; (b) limit or prohibit loans or other transfers of funds by members of the related group to the local licensee, other than deposits with the licensee made in the ordinary course of (c) limit or prohibit loans or other transfers of funds by the local licensee to members of the related group; (d) increase capital and liquidity requirements with respect to the local licensee; or 80 (e) require that some or all of the directors of the local licensee are independent directors.