Section 17Part 1 — Securities Investment Business Act
Enforcement powers of the Authority
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Without prejudice to any other action that may be instituted or taken against a licensee or a registered person, if at any time it appears to the Authority that a licensee or a registered person has failed to comply with any of the requirements under this Law or any regulation made under it the Authority may by written notice direct the licensee or the registered person to ensure that the requirement is complied with within such period and on such terms and conditions as the authority may specify and the licensee or the registered person shall comply with the notice.
The Authority may carry out any of the actions specified in subsection (2A) if it knows or has reasonable grounds to believe that a licensee or a registered person —
is unable or appears likely to become unable to meet its obligations as they fall due;
is carrying on business fraudulently or otherwise in a manner detrimental to the public interest, to the interest of its clients or to the interest of its creditors;
has contravened any provision of this Law or the regulations or of the Anti- Money Laundering Regulations (2020 Revision) ;
has failed to comply with a condition of its licence or registration; 17
has not conducted the direction and management of its business in a fit and proper manner or has directors, senior officers, managers or persons who have acquired ownership or control who are not fit and proper persons; or
has failed to comply with any lawful direction from the Authority. (2A) The actions referred to in subsection (2) are as follows — (a) revoke the licence or cancel the registration; (b) impose conditions or further conditions upon the licence or registration or amend or revoke any such conditions; (c) apply to the court for any order which is necessary to protect the interests of clients or creditors of the licensee or registered person such orders including an injunction or restitution or disgorgement order under section 18 ; (d) publish in the Gazette and in any official publications of the Authority a breach by any person of this Law, of any regulations made hereunder or of any lawful direction issued by the Authority; (e) at the expense of the licensee or registered person, require that an auditor ’ s report be submitted to the Authority on the licensee ’ s or registered person ’ s anti-money laundering systems and procedures for compliance with the Anti-Money Laundering Regulations (2020 Revision) ; (f) require the substitution of any director or officer of the licensee or registered person whenever appointed or the divestment of ownership or control;
at the expense of the licensee or registered person, appoint a person to advise the licensee or registered person on the proper conduct of its affairs and to report to the Authority thereon;
at the expense of the licensee or registered person appoint a person to assume control of the licensee ’ s or registered person ’ s affairs who shall have all the powers necessary to administer the affairs of the licensee or registered person including the power to terminate the securities investment business of the licensee or registered person;
in the case of a reasonable belief that the licensee or registered person has materially contravened the Anti-Money Laundering Regulations (2020 Revision) , report the same to the Director of Public Prosecutions; or
require such action to be taken by the licensee or registered person as the Authority reasonably believes necessary for the purposes of dealing with the circumstances referred to in subsection (2)(a) to (f).
Where the Authority decides to take action under subsection (2A), it shall notify the licensee or registered person in writing, specifying the following —
the action that the Authority has taken or intends to take;
the reasons for the action, with reference to statutory provisions, and when it is to take effect;
whether, in addition to
, the licensee or registered person may make representations to the Authority within such period as may be specified in the notification; and (d) the licensee ’ s or registered person ’ s right to appeal under sections 22 or 23 and the procedure therefor.
Where action is proposed to be taken by the Authority under subsection (2) and the licensee is a broker member of the Exchange, the Authority shall consult with the Exchange and provide it with a copy of any notification issued under subsection (3).
A person appointed under subsection (2A)(g) or (h) or whose appointment has been extended under subsection
(b) shall, from time to time at that person’s discretion and in any case within three months of the date of that person’s appointment or of the extension of that person’s appointment, prepare and furnish to the Authority a report of the affairs of the licensee or registered person and of that person’s recommendations thereon. (6) On receipt of a report under subsection (5), the Authority may —
revoke the appointment of the person appointed under subsection (2A)(g) or (h);
extend the period of that person’s appointment;
subject to such conditions as the Authority may impose, allow the licensee or registered person to reorganise its affairs in a manner approved by it; or
revoke the licence or cancel the registration and apply to the court for an order that the licensee or registered person, if either is a company, be wound up by the court in which case the provisions of the Companies Law (2020 Revision) relating to the winding up of a company shall apply.
Notwithstanding any other provision in this Law, the Authority may cancel a licence or registration if the licensee or registered person has ceased, or wishes to cease, to carry on securities investment business, or has not commenced business within one year of the date of the grant of the licence or registration.
Whenever the Authority revokes or cancels a licence or registration under this section or section 9 notice of such revocation or cancellation shall forthwith be published in the Gazette.