(1) In this section-

["competent authority" has the meaning assigned to it by the Directive;

"Directive" means Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 (OJ No. L145, 30 April 2004, p. 1) on markets in financial instruments, as amended from time to time;]¹

"excluded business" means any of the following―

(a) any business which consists in the making or managing of investments;

(b) any business which consists in, or is carried on for the purpose of, providing services to persons who are connected with the person carrying on the business; and the question of whether a person is connected with another person shall be determined in accordance with the provisions of section 10 of the Taxes Consolidation Act 1997;

(c) any business which consists in insurance business, or assurance business within the meaning of section 3 of the Insurance Act 1936;

(d) any business which consists in administering, managing or acting as trustee in relation to, a pension scheme, or which is carried on by the administrator, manager or trustee of such a scheme, in connection with or for the purposes of the scheme;

(e) any business which consists in operating, or acting as trustee in relation to, a collective investment scheme (within the meaning of section 88), or is carried on by the operator or trustee of such a scheme in connection with or for the purposes of the scheme;

"intermediary" means a person who carries on a bona fide business of dealing in securities and, for the purpose of this definition, the entering into derivative agreements referenced directly or indirectly to securities shall be treated as carrying on a business of dealing in securities;

"member firm" means a member of-

(a) the Irish Stock Exchange Limited,

(b) the London Stock Exchange plc, or

(c) any other exchange or market which is designated for the purposes of this section in regulations made by the Commissioners;

"operator", in relation to a collective investment scheme, means an administrator, manager or other such person who is authorised to act on behalf of, or in connection with, or for the purposes of, the scheme and habitually so acts in that capacity;

"recognised intermediary", in relation to an exchange or market, means a member of the exchange or market who is an intermediary and who is approved by the Commissioners as a recognised intermediary in accordance with arrangements made by the Commissioners with the exchange or market.

(2) For the purposes of this section, a transfer of securities is effected on an exchange or market if-

(a) it is subject to the rules of the exchange or, as the case may be, the market, and

(b) it is reported to the exchange or, as the case may be, the market, in accordance with the rules of the exchange or market concerned.

(2A) For the purposes of subsection (2), a transfer of securities shall be deemed to be effected on an exchange or market, where the transfer of securities gives effect to a transaction that is required by a competent authority, in accordance with the Directive, to be reported directly or indirectly to the competent authority and is so reported in accordance with that requirement.

(3) Stamp duty shall not be chargeable on an instrument of transfer whereby any securities are on the sale of such securities transferred to a person or a nominee of such person, where-

(a) the person is a member firm of an exchange or market,

(b) the person is a recognised intermediary in relation to the exchange or market,

(c) the transfer of securities is effected-

(i) on the exchange or, as the case may be, the market,

(ii) on any exchange or market operated by the Irish Stock Exchange Limited or the London Stock Exchange plc, or

(iii) on any other exchange or market designated by the Commissioners for the purposes of this section,

and

(d) the transfer of securities is not effected in connection with an excluded business.

(4)(a) The Commissioners may, from time to time, make arrangements with an exchange or a market setting out how a member firm is to be approved by the Commissioners as a recognised intermediary.

(b) Every recognised intermediary shall, whenever and wherever required to do so, make available for inspection by an officer of the Commissioners authorised for that purpose, all books, documents and other records in the possession of or under the control of, the recognised intermediary, as are relevant for the purposes of the Commissioners ensuring compliance by the intermediary with this section.

(5)(a) The Commissioners may, from time to time, make regulations to designate an exchange or market for the purposes of this section.

(b) Every regulation made under this section shall be laid before Dáil Eíreann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Eíreann within the next 21 days on which Dáil Eíreann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.