Section 92 of the Act of 1989 is hereby amended by the insertion of the following subsections:

"(3) The Bank may decide not to impose prudential, supervisory and reporting requirements and conditions on a financial institution or a class of financial institutions where it considers that the imposition of such requirements and conditions is not necessary in the interests of the reasonable protection of the public, the financial system or a sector thereof, or otherwise in the interests of the proper and orderly regulation of the institution or class of institutions, or the Custom House Docks Area (within the meaning of section 41 of the Finance Act, 1986).

(4) Where under subsection (3) no requirements or conditions are imposed by the Bank, sections 95 and 96 shall not apply to the institution or class of institutions concerned.".