Section 14Part 1 — Banks and Trust Companies Act
Certain prohibitions on licensee
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A licensee incorporated under the Companies Act (2025 Revision) shall not, without the prior written approval of the Authority —
open outside the Islands a subsidiary, branch, agency or representative office; or
change its name. ( 1A ) A licensee shall inform the Authority of any change in holdings that affects the composition of the licensee ’ s econ omic group, including any new entities forming part of the licensee ’ s economic group, within forty - five days of the occurrence of the change.
A licensee incorporated under the Companies Act (2025 Revision) holding a licence for the carrying on of banki ng business shall not acquire or hold a beneficial interest in an entity, whether directly or indirectly, so that the value of the interest at any time exceeds twenty per cent of the net worth of the licensee —
except with the prior written approval of the Authority; or
except insofar as may be necessary with respect to any interest acquired by the licensee in satisfaction of debts due to it, but any such interest acquired in satisfaction of debts shall be disposed of within a period not exceeding f ive years unless permission to extend such period has been given by the Authority.
Subject to subsections
and
, a licensee holding a licence for the carrying on of banking business shall not purchase, acquire or lease real estate unless the Auth ority has given prior written approval or —
such real estate is necessary for the purpose of conducting its business or providing housing or amenities for its staff, having regard to any reasonable requirements for future expansion of its business or s taff; and
the market value of the real estate does not exceed twenty per cent of the net worth of the licensee, or such other sum as to the Authority may seem appropriate to a maximum of fifty per cent of the net worth of the licensee. ( 4 ) Where the li censee exercises its legal right in respect of any property which is the security for any debt, the licensee may acquire such property, but in that case the property shall not be retained for a period in excess of five years without the permission of the A uthority. ( 5 ) Nothing in this section shall require a licensee — ( a ) which holds a licence for the carrying on of banking business; and ( b ) which immediately before the 14th November, 2006 owns or leases real estate the market value of which exceeds fifty per cent of the net worth of the licensee, to comply with subsection (3)(b) before the expiry of a period of five years commencing with that date.
A contract, transaction, obligation or instrument entered into by any person shall not be rendered unenfo rceable merely because it is entered into in connection with banking business carried on by that person in contravention of this section.