Key Benefits:
PART V
Inquiries by and Other Powers of Registrar (ss 20-25)
(1) The Registrar may at any time call for any documents and any other information from a licensed fund or an officer of a licensed fund in relation to any matter connected with the business or transactions of that fund.
(2) Within one month, or such further period as the Registrar may allow, of receiving any inquiry in terms of subsection (1), the fund or officer to whom the inquiry is made shall reply in writing thereto and shall furnish any document called for.
[Ch2703s21]21. Investigation of affairs of a licensed fund
(1) If at any time the Registrar, from information in his possession, is of the opinion that it is necessary or desirable to do so, he may investigate the affairs or any part of the affairs of a licensed fund.
(2) In making an investigation in terms of this section, the Registrar may-
(a) require from the fund the production of any of its securities, books or documents; and
(b) examine on oath, which the Registrar may administer, any person in relation to the business of the fund.
(3) The Registrar shall have the same powers, rights and privileges as conferred upon a Commissioner by the Cap. 05:02 Commissions of Inquiry Act.
(4) The Registrar may, with the approval of the Minister, recover from the fund concerned all or part of the expenses necessarily incurred in connection with the investigation.
[Ch2703s22]22. Registrar may prohibit dealings with assets pending investigation 2 of 2007, s. 107
(1) The Registrar may, at any time before or during an investigation under section 21, by an order given under his hand-
(a) prohibit a fund from dealing in any manner whatsoever with all or a named portion of its assets;
(b) prohibit any dealing which would result in a reduction of the value of the fund,
for such time as he shall consider necessary to conclude his investigation or any part of it.
(2) Except with the prior consent in writing of the Registrar, the assets covered by an order made under subsection (1) shall not be sold, mortgaged, pledged or otherwise encumbered in any manner whatsoever by any person.
(3) Every director, manager, controller or principal officer who, after an order has been made by the Registrar under subsection (1), purports to sell, mortgage, pledge or otherwise encumber any asset named in such order or reduces the value of the fund shall be guilty of an offence and liable, at the order of the Registrar, to a fine equivalent to twice the value of any loss or expense thereby caused to the fund and to the Registrar.
(4) Any sale, mortgage, pledge or other encumbrance purported to be made of or to any asset, named in any order made under subsection (1) while such order remains in force, shall be void and of no legal effect.
(5) Any fine imposed on any person under subsection (3) shall be recoverable as a fine imposed by a court under the provisions of subsections (1) to (4) of section 303 of the Cap. 08:02 Criminal Procedure and Evidence Act, and an affidavit sworn by the Registrar shall be sufficient proof of the lawful imposition of the fine to enable the court to issue a warrant under those provisions.
(6) An order made by the Registrar under subsection (1) shall be published in the Gazette as soon as practicable.
[Ch2703s23]23. Registrar may require unlicensed fund to provide information
(1) The Registrar may, by notice in writing, require any person whom he has reason to suspect is carrying on the business of a fund which is not licensed to transmit to him, within such period as may be specified in the notice, a copy of the rules, if any, in terms of which the business concerned is being operated, together with a copy of the last annual accounts recorded by that person in relation to that business, and such other information in relation to the business carried on by that person as the Registrar may require.
(2) If any person who has been required in terms of subsection (1) to transmit any document or information fails to comply with the terms of the notice within the period specified therein, the Registrar may investigate the affairs or any part of the affairs of that person, and the provisions of section 21(2) to (4) shall, mutatis mutandis, apply in relation to such investigation.
(3) If it appears from inquiries in terms of subsection (1) or an investigation in terms of subsection (2) that the person concerned is carrying on the business of a fund which is not licensed, the Registrar-
(a) shall inform the person concerned accordingly by notice in writing sent by registered post; and
(b) may, if an application for licensing of the fund is not received within one month of the sending of such notice, direct that the business of the fund shall be wound-up and that the provisions of section 10 shall, mutatis mutandis, apply as though the fund were a licensed fund.
