s.12Mutual Fund Administrators Licences
12
Section 12Part 3 — Mutual Fund Administration

Mutual Fund Administrators Licences

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An application for a Mutual Fund Administrators Licence shall be sent to the Authority in a form provided or approved f or the purpose by the Authority and accompanied by such information as the Authority requires to determine the application and the prescribed application fee which shall be forwarded by the Authority to the Financial Secretary for the benefit of the revenu e.
The Authority may not grant a Mutual Fund Administrators Licence until it has been satisfied by the applicant —
that that applicant has sufficient expertise to administer regulated mutual funds;
that that applicant ’s business as a mutual fund administrator will be administered by persons who are fit and proper persons to be directors or, as the case may be, managers or officers in their respective positions;
in the case of an application for a licence that is not a restricted Mutual Fu nd Administrators Licence and, subject to subsection
, that that applicant has a net worth of at least four hundred thousand dollars (or the equivalent in another currency); ( d ) in the case of an application for a licence that is not a restricted Mutual Fund Administrators Licence, that it has a place which will be its principal office in the Islands and two individuals or a body corporate resident or incorporated in the Islands to be its agent in the Islands; and ( e ) in the case of an application for a restricted Mutual Fund Administrators Licence, that the applicant has a registered office in the Islands. ( 3 ) The Authority may waive compliance with subsection (2)(c) if it is otherwise satisfied as to the financial viability of the applicant.
Where, in accordance with subsection (2)(d), a licensed mutual fund administrator has appointed two individuals in the Islands to act as its agents in the Islands the administrator may appoint them to act either separately or jointly.
If a licensed mutual fun d administrator has a principal office in the Islands or a body corporate or individuals acting as its agent in the Islands it shall not change that principal office or the body corporate or any individual acting as its agent without first giving the Authority notice of its intention to do so, and a person who contravenes this provision commits an offence and is liable on conviction to a fine of twenty thousand dollars.
The Authority may grant a Mutual Fund Administrators Licence subject to such conditi ons as it considers appropriate.
A licensed mutual fund administrator shall, when carrying on or attempting to carry on business as a mutual fund administrator, comply with any conditions contained in its Mutual Fund Administrators Licence, and a perso n who contravenes this provision commits an offence and is liable on conviction to a fine of one hundred thousand dollars.
A person shall not, in connection with an application for a Mutual Fund Administrators Licence, supply to the Authority informati on that person knows or should reasonably know is false or misleading, and a person who contravenes this provision commits an offence and is liable on conviction to a fine of one hundred thousand dollars. 13. Restriction on issue, etc., or transfer of sh ares in licensed mutual fund administrator 13 . ( 1 ) Where a licensed mutual fund administrator is a company, the company shall not issue shares or a person owning or having an interest in shares in the company shall not transfer or otherwise dispose of or d eal in those shares or that interest, unless the Authority has given its approval to the issue, transfer, disposal or dealing, as the case may be, and any conditions of the approval are complied with. ( 2 ) The Authority may, in respect of a licensed mutual fund administrator whose shares are publicly traded on a stock exchange recognised by the Authority, waive the obligation to obtain approval under subsection (1), and any such waiver —
shall be subject to a condition that the licensed mutual fund administrator shall, as soon as reasonably practicable, notify the Authority of —
any change in control of the licensed mutual fund administrator;
the acquisition by any person or group of persons of shares representing more than ten per cent of t he issued share capital or total voting rights of the licensed mutual fund administrator; or
the acquisition by any person or group of persons of shares representing more than ten per cent of the issued share capital or total voting rights of the par ent company of the licensed mutual fund administrator;
shall be subject to a condition that the licensed mutual fund administrator shall, as soon as reasonably practicable, provide such information to the Authority, and within such period of time, as t he Authority may require for the purpose of enabling an assessment as to whether persons acquiring control or ownership of the licensed mutual fund administrator in the circumstances set out in paragraph (a) are fit and proper persons to have such control or ownership; and
shall be subject to such terms and other conditions as the Authority may deem necessary. ( 3 ) Any person who contravenes this section commits an offence and is liable on conviction to a fine of twenty thousand dollars.

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