Section 48: Appointment of administrator

48. Appointment of administrator (1) Subject to subsection (2), the Commission may appoint a person as an administrator in relation to the whole or part of the business activities of a person whose licence has been suspended, revoked or otherwise terminated. (2) The Commission shall not appoint as an administrator— (a) a body corporate; (b) an undischarged bankrupt; (c) any officer, actuary or auditor of the person whose licence has been suspended, revoked or otherwise terminated; (d) a person restrained or disqualified from managing a company under the Companies Act; (e) a mortgagee of any property of the person whose licence has been suspended, revoked or otherwise terminated; (f) an officer of any body corporate which is a mortgagee of the property of the person whose licence has been suspended, revoked or otherwise terminated. (3) The remuneration payable to an administrator shall be determined by the Commission and be recovered from the person under administration. (4) Where the Commission appoints an administrator under subsection (1), it shall give notice in writing of the appointment to the person whose licence has been suspended, revoked or otherwise terminated. (5) The administrator shall manage the whole of the business entrusted to his administration and for the purpose of doing so, shall— (a) comply with such directions given to him by the Commission under subsection (6); F10 – 31 [Issue 6] Financial Services Act (b) manage the business honestly and in good faith and shall exercise care, diligence and skill that a reasonable person would exercise in comparable circumstances. (6) The Commission may give such directions to the administrator as to his powers and duties as it may determine in the circumstances of the case. (7) The administrator may apply to the Commission for instructions as to the manner in which he shall conduct the management of the business of the person under administration or any matter arising in the course of that management. (8) Where a licence is suspended and the suspension is cancelled, the powers and duties of the administrator shall cease on the cancellation of the suspension of the licence and he shall use his best endeavours to facilitate the return of the management of the business to the licensee. (9) Where a licence is revoked or otherwise terminated, the powers and duties of the administrator shall cease— (a) on the appointment of a liquidator; or (b) where no liquidator is appointed— (i) on the winding up of the business of the licensee; or (ii) on such time as may be determined by the Commission.