Section 46: Fit and proper person

46. Fit and proper person (1) No person shall be appointed or reappointed as director of a financial institution unless the appointment or reappointment takes into account the guidelines issued by the central bank relating to fit and proper persons. continued on page B3 – 37 [Issue 6] B3 – 36 (2) Revised Laws of Mauritius (2) No financial institution shall appoint or reappoint any person as senior officer in Mauritius unless— (a) prior notice to the central bank is given by the financial institution at least 20 days before the date of the proposed appointment or reappointment; (b) the notice under paragraph (a) is accompanied by a certificate of good conduct acceptable to the central bank, or a certificate of morality dating back to not more than 3 months, or an affidavit duly sworn stating any conviction for a crime and any past or present involvement in a managerial function in a body corporate subject to insolvency proceedings or having declared personal bankruptcy duly executed by the person concerned; and (c) for the central bank is satisfied that the person to be appointed or reappointed is a fit and proper person. (2A) No financial institution shall outsource any of its material activities to any other person unless the central bank is satisfied that the person meets the requirements of subsection (3). (3) The central bank shall, for the purposes of determining whether the person is a fit and proper person, have regard to— (a) his probity, integrity, diligence, competence and business experience; (b) his previous conduct and activities in business; and (c) whether the person has been subject to any conviction for an offence involving fraud or other dishonesty. (4) The central bank shall communicate in writing to the financial institution its objection, if any, to the appointment or reappointment of the person within 15 days of the date of receipt of the notification under subsection (2). (5) Any person who attempts to assume any office specified in subsection (2) over the objection of the central bank under subsection (4) shall be subject to a suspension order by the central bank under section 45 (2) (b). (6) Where the central bank has reason to believe that any person is, by virtue of its shareholding in the financial institution or otherwise, in a position to influence any person specified in subsection (1) or (2), and is exercising its influence in a manner which is likely to be detrimental to the interests of depositors, the central bank may request that the shareholder holding a significant interest and the financial institution to remedy the situation. (7) Where a shareholder holding a significant interest or a financial institution fails to give satisfaction to the central bank following a request made under subsection (6), the central bank may take action against him under section 45 (2) (a). [S. 46 amended by s. 2 (d) of Act 15 of 2006 w.e.f. 7 August 2006; s. 3 (h) of Act 10 of 2010 w.e.f. 24 December 2010.] B3 – 37 [Issue 3] Banking Act