Section 46: Power to give directions

46. Power to give directions (1) Where the Chief Executive has reasonable cause to believe that— (a) a licensee has contravened or is likely to contravene a relevant Act; (b) a licensee is conducting its affairs in an improper or financially unsound way; (c) a licensee is involved in financial crime; or (d) a direction is necessary or desirable to protect the interests of consumers of financial services and clients of a licensee or any other licensee concerned, the Chief Executive may give the licensee such written direction as he may determine in the circumstances. (2) Without prejudice to the generality of subsection (1), the Chief Executive may direct a person— (a) in the case of a contravention of a relevant Act, to do a specified act, or refrain from doing a specified act, for the purpose of— (i) remedying the effects of the contravention; or F10 – 29 [Issue 6] Financial Services Act (ii) taking such measures as may be necessary to ensure that contraventions do not occur; (b) to comply with the whole or a specified part of any enactment; (c) to comply with any FSC Rules, relevant guideline or such other similar instruments issued by the Commission or an SRO; (ca) to comply with any of the principles and practices of corporate governance laid down in the Code of Corporate Governance issued under the Financial Reporting Act; (d) to cause an auditor approved by the Commission to audit the records of the licensee, at the expense of the licensee, and give the report to the Commission; (e) to cause a person approved by the Commission to prepare a report on the licensee’s affairs, at the expense of the licensee, and give the report to the Commission; (f) to remove or take steps to remove a specified officer or employee of the licensee from office or employment, or ensure that a specified officer or employee of the licensee does not take part in the management or conduct of the business of the licensee except as permitted by the Commission; (g) to appoint a specified person to a specified office, including the office of director of the licensee, for a period specified in the direction; (h) to abide by any undertaking given under section 51; (i) to establish compliance programmes, internal controls, corrective advertising or changes in the management of a licensee. (3) The Chief Executive shall not give a direction under subsection (2) (e) and (f) unless he is satisfied that— (a) the licensee has contravened a relevant Act and the officer or employee of the licensee was concerned in the contravention; or (b) the officer or employee has contravened a relevant Act or has been knowingly concerned in financial crime. (4) A direction under this section may specify the time by which, or period during which, it shall be complied with. (5) A licensee who has been given a direction shall comply with the direction notwithstanding anything in its constitution or any contract or arrangement to which it is a party. (6) The Chief Executive shall not give a direction under this section before giving the person to whom it is to be addressed reasonable opportunity to make written representations on the matter. (7) The Chief Executive may revoke a direction under this section at any time, by written notice to the licensee. [S. 46 amended by s. 13 (b) of Act 27 of 2012 w.e.f. 21 December 2012.] [Issue 6] F10 – 30 Revised Laws of Mauritius