Companies Act 2014 section 1397

Default of investment company or failure in performance of its investments

Section 1397 clarifies that Central Bank authorisation of an investment company does not amount to a guarantee of that company's financial health, and limits the Bank's liability for any subsequent default by the company.

• Central Bank authorisation of an investment company is not a warranty of the company's creditworthiness or financial standing.
• Investors and other parties cannot rely on authorisation as an endorsement of the company's ability to meet its obligations.
• The Central Bank is not liable for any default by an authorised investment company arising from its regulatory functions under Part 24.
• The only exception to this protection is where the Central Bank has acted in bad faith in carrying out its functions.

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