Which body should be notified in writing before establishing a subsidiary to provide new services?

• A. Central Bank.
• B. Competition and Consumer Protection Commission.
• C. Department of Finance.
• D. Stock Exchange Authority.

Answer: (A)

Before a financial group can set up a subsidiary to offer new services, the regulator overseeing financial institutions must be informed in writing. The Central Bank is responsible for authorizing and supervising banks, insurers, investment firms, and other financial service providers. A written notification lets the Central Bank assess the plan, governance, risk controls, capital adequacy, and consumer protections before the subsidiary begins operations. The other bodies don’t have this licensing role for new financial-service activities: the Competition and Consumer Protection Commission handles market competition and consumer protection, the Department of Finance deals with policy and public finances, and the Stock Exchange Authority is not the regulator for establishing new financial-service subsidiaries.