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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 twelve 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 two 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 pursuant to section 36.

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