§ 166 — Power of Authority to issue written notice

166.—(1) The Authority may, if the Authority thinks it necessary or expedient for the effective administration of this Part, for the protection of consumers or in the interest of the public or a section of the public, issue to any of the following persons or classes of persons a written notice, either of a general or a specific nature, to comply with such requirements as the Authority may specify in the notice:(a)

any licensee or class of licensees;

(b)

any person, or class of persons, exempt under section 189;

(c)

any person that contravenes, has contravened, or is likely to contravene, any provision of this Part.

(2) Without limiting subsection (1), a notice may be issued —(a)

with respect to —(i)

the activities that may be carried out by a licensee or a person exempt under section 189, in relation to its business;

(ii)

the standards, framework, policies and procedures for the prudent management of risks (including information technology risks) by a licensee or a person exempt under section 189;

(iii)

the financial soundness, financial management and stability of a licensee or a person exempt under section 189;

(iv)

the standards to be maintained by a licensee or a person exempt under section 189, in the conduct of its business;

(v)

the arrangement and conditions that are to apply if a licensee or a person exempt under section 189, appoints any person as an independent contractor to carry out the functions and duties of the licensee or person exempt under section 189, as the case may be;

(vi)

the type, form, manner and frequency of returns and other information to be submitted to the Authority;

(vii)

the preparation and publication of reports on the performance of a licensee or a person exempt under section 189;

(viii)

the remuneration of an auditor appointed under this Part and the costs of an audit carried out under this Part;

(ix)

the collection by or on behalf of the Authority of information from a licensee or a person exempt under section 189, in relation to the conduct of its business at such intervals or on such occasions as may be set out in the notice;

(x)

the manner in which a licensee or a person exempt under section 189, deals with its customers, and any conflicts of interests between the licensee or person exempt under section 189 (as the case may be) and its customers;

(xi)

the display or exhibition by a licensee or a person exempt under section 189, of such cautionary statements as the Authority thinks fit in a conspicuous place at every place of business or website of the licensee, or person exempt under section 189; and

(xii)

the provision by a licensee or a person exempt under section 189, of cautionary statements in writing to the customers or prospective customers of the licensee or person exempt under section 189;

(b)

to require any person that contravenes, has contravened, or is likely to contravene any provision of this Part —(i)

to comply with, or to cease contravening, that provision;

(ii)

to take any action necessary to enable the person to conduct the person’s business in accordance with sound principles; and

(iii)

where the person is a company or a VCC, to remove any of its directors; and

(c)

for any other purpose specified in this Part.

(3) It is not necessary to publish any written notice issued under subsection (1) or under any other provision of this Part in the Gazette.

(4) The Authority may at any time vary, rescind or revoke any notice issued under subsection (1).

(5) A person that fails to comply with any requirement specified in a notice issued under subsection (1) shall (if the failure to comply with that requirement is not itself an offence under any other provision of this Part) be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.

—(1) The Authority may, if the Authority thinks it necessary or expedient for the effective administration of this Part, for the protection of consumers or in the interest of the public or a section of the public, issue to any of the following persons or classes of persons a written notice, either of a general or a specific nature, to comply with such requirements as the Authority may specify in the notice:(a)

any licensee or class of licensees;

(b)

any person, or class of persons, exempt under section 189;

(c)

any person that contravenes, has contravened, or is likely to contravene, any provision of this Part.

(2) Without limiting subsection (1), a notice may be issued —(a)

with respect to —(i)

the activities that may be carried out by a licensee or a person exempt under section 189, in relation to its business;

(ii)

the standards, framework, policies and procedures for the prudent management of risks (including information technology risks) by a licensee or a person exempt under section 189;

(iii)

the financial soundness, financial management and stability of a licensee or a person exempt under section 189;

(iv)

the standards to be maintained by a licensee or a person exempt under section 189, in the conduct of its business;

(v)

the arrangement and conditions that are to apply if a licensee or a person exempt under section 189, appoints any person as an independent contractor to carry out the functions and duties of the licensee or person exempt under section 189, as the case may be;

(vi)

the type, form, manner and frequency of returns and other information to be submitted to the Authority;

(vii)

the preparation and publication of reports on the performance of a licensee or a person exempt under section 189;

(viii)

the remuneration of an auditor appointed under this Part and the costs of an audit carried out under this Part;

(ix)

the collection by or on behalf of the Authority of information from a licensee or a person exempt under section 189, in relation to the conduct of its business at such intervals or on such occasions as may be set out in the notice;

(x)

the manner in which a licensee or a person exempt under section 189, deals with its customers, and any conflicts of interests between the licensee or person exempt under section 189 (as the case may be) and its customers;

(xi)

the display or exhibition by a licensee or a person exempt under section 189, of such cautionary statements as the Authority thinks fit in a conspicuous place at every place of business or website of the licensee, or person exempt under section 189; and

(xii)

the provision by a licensee or a person exempt under section 189, of cautionary statements in writing to the customers or prospective customers of the licensee or person exempt under section 189;

(b)

to require any person that contravenes, has contravened, or is likely to contravene any provision of this Part —(i)

to comply with, or to cease contravening, that provision;

(ii)

to take any action necessary to enable the person to conduct the person’s business in accordance with sound principles; and

(iii)

where the person is a company or a VCC, to remove any of its directors; and

(c)

for any other purpose specified in this Part.

(3) It is not necessary to publish any written notice issued under subsection (1) or under any other provision of this Part in the Gazette.

(4) The Authority may at any time vary, rescind or revoke any notice issued under subsection (1).

(5) A person that fails to comply with any requirement specified in a notice issued under subsection (1) shall (if the failure to comply with that requirement is not itself an offence under any other provision of this Part) be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.