§ 464 — Regulatory directions to CMOs and their officers

464.—(1) Subject to subsection (3), IPOS may, by written notice, give directions to a CMO or any officer of a CMO for any of the following purposes:(a)

to obtain information about the CMO and its business as a CMO, for the purpose of regulating CMOs in general;

(b)

to secure the CMO’s compliance with its class licence conditions;

(c)

to ensure the good governance of the CMO;

(d)

to investigate or remedy any contravention by the CMO of its class licence conditions;

(e)

where the CMO is under a cessation order, to secure the orderly cessation of the CMO’s business as a CMO.

(2) The power of IPOS under subsection (1) includes directing a CMO or any officer of a CMO to —(a)

provide security for the CMO’s compliance with its class licence conditions;

(b)

conduct an audit of the CMO’s business at the expense of the CMO or officer;

(c)

if there is reason to believe, based on credible information, that the CMO has contravened one or more of its class licence conditions —(i)

submit to an audit of the CMO’s business conducted by or at the direction of IPOS;

(ii)

pay the cost incurred by IPOS for the audit; and

(iii)

pay any other cost incurred by IPOS in relation to the audit, but only if the findings of the audit lead to —(A)

a financial penalty being imposed on the CMO or an officer of the CMO;

(B)

a regulatory direction to the CMO or an officer of the CMO to turn over the conduct of the CMO’s business to a person appointed by IPOS; or

(C)

a cessation order being made against the CMO;

(d)

secure the removal or appointment of a person as an officer of the CMO;

(e)

turn over the conduct of the CMO’s business to a person appointed by IPOS;

(f)

stop taking on the management of new works or performances; and

(g)

in the case of an officer of the CMO — resign from or otherwise cease to act in that capacity.

(3) Regulations may require IPOS to give a person an opportunity to make representations in accordance with the prescribed procedure before giving a regulatory direction to the person.

(4) IPOS may, by written notice, revoke a regulatory direction at any time.

(5) It is an offence for a person to —(a)

fail to comply with a regulatory direction; or

(b)

knowingly do anything that prevents or impedes compliance with a regulatory direction.

(6) A person who commits an offence under subsection (5) shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months or to both.

(7) For the purposes of subsection (2)(c) —(a)

IPOS may certify in writing the cost incurred by IPOS for or in relation to an audit; and

(b)

unless the contrary is proved, the certified cost is presumed to be the cost for or in relation to that audit and is recoverable as a debt due from the CMO or officer to IPOS.

(8) A regulatory direction has effect despite —(a)

any written law; and

(b)

in the case of a CMO that is not an individual — anything in the memorandum or articles of association, or other constitution, of the CMO.

—(1) Subject to subsection (3), IPOS may, by written notice, give directions to a CMO or any officer of a CMO for any of the following purposes:(a)

to obtain information about the CMO and its business as a CMO, for the purpose of regulating CMOs in general;

(b)

to secure the CMO’s compliance with its class licence conditions;

(c)

to ensure the good governance of the CMO;

(d)

to investigate or remedy any contravention by the CMO of its class licence conditions;

(e)

where the CMO is under a cessation order, to secure the orderly cessation of the CMO’s business as a CMO.

(2) The power of IPOS under subsection (1) includes directing a CMO or any officer of a CMO to —(a)

provide security for the CMO’s compliance with its class licence conditions;

(b)

conduct an audit of the CMO’s business at the expense of the CMO or officer;

(c)

if there is reason to believe, based on credible information, that the CMO has contravened one or more of its class licence conditions —(i)

submit to an audit of the CMO’s business conducted by or at the direction of IPOS;

(ii)

pay the cost incurred by IPOS for the audit; and

(iii)

pay any other cost incurred by IPOS in relation to the audit, but only if the findings of the audit lead to —(A)

a financial penalty being imposed on the CMO or an officer of the CMO;

(B)

a regulatory direction to the CMO or an officer of the CMO to turn over the conduct of the CMO’s business to a person appointed by IPOS; or

(C)

a cessation order being made against the CMO;

(d)

secure the removal or appointment of a person as an officer of the CMO;

(e)

turn over the conduct of the CMO’s business to a person appointed by IPOS;

(f)

stop taking on the management of new works or performances; and

(g)

in the case of an officer of the CMO — resign from or otherwise cease to act in that capacity.

(3) Regulations may require IPOS to give a person an opportunity to make representations in accordance with the prescribed procedure before giving a regulatory direction to the person.

(4) IPOS may, by written notice, revoke a regulatory direction at any time.

(5) It is an offence for a person to —(a)

fail to comply with a regulatory direction; or

(b)

knowingly do anything that prevents or impedes compliance with a regulatory direction.

(6) A person who commits an offence under subsection (5) shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months or to both.

(7) For the purposes of subsection (2)(c) —(a)

IPOS may certify in writing the cost incurred by IPOS for or in relation to an audit; and

(b)

unless the contrary is proved, the certified cost is presumed to be the cost for or in relation to that audit and is recoverable as a debt due from the CMO or officer to IPOS.

(8) A regulatory direction has effect despite —(a)

any written law; and

(b)

in the case of a CMO that is not an individual — anything in the memorandum or articles of association, or other constitution, of the CMO.