Section 96: Investigation

96. Investigation (1) Without prejudice to the powers of the Chief Executive under the Financial Services Act, where the Chief Executive has reason to believe that a licensee or registered person— (a) has failed, is failing or is likely to fail, to comply with any direction issued by the Commission under section 93 (1); [Issue 1] I15 – 62 Revised Laws of Mauritius (b) has committed, is committing or is likely to commit a fraud, any financial crime or a serious misconduct; (c) has carried, is carrying or is likely to carry out any activity which may cause serious prejudice to its customers, or to the soundness, stability and integrity of the financial services sector; (d) in the case of an insurer, has failed, is failing or is likely to fail to maintain a financially sound position in accordance with Part III; (e) has failed to provide any information or document requested by the Commission, he may make an investigation into the business or any part of the business of the licensee or registered person. (2) For the purpose of an investigation under subsection (1), the Chief Executive may, by notice in writing, require— (a) a licensee or registered person whose affairs are to be investigated to attend, at a specified time and place, and answer questions or otherwise furnish information or produce such documents as may be required with respect to any matter relevant to an investigation by him; and (b) any officer of the licensee or registered person to furnish information or to produce any document in his custody or under his control. (3) The Chief Executive may take copies or extracts from any document produced under subsection (2) and may require the person producing the document to give any explanation relating to such document. (4) Where material to which an investigation relates consists of information stored in a computer, disc, cassette, or on microfilm, or preserved by any mechanical or electronic device, the request from the Chief Executive shall be deemed to require the person named therein to produce or give access to it in a form and medium in which it can be taken away and in which it is visible and legible. (5) Subject to subsection (6), any person required to attend and answer questions or otherwise furnish information or to produce any specified documents or any documents of a specified class shall not, without reasonable excuse, fail to answer a question or furnish information or produce a document or class of documents. (6) It shall be a reasonable excuse, for the purposes of subsection (5), for a person to refuse or fail to answer a question put to him or to refuse or fail to produce a document or class of documents that he was required to produce, where the answer to the question or the production of the document or class of documents might tend to incriminate him. (7) An investigation may take place at any or at all the premises where business of the licensee or registered person is conducted or records are maintained by the licensee, registered person or associated party. I15 – 63 [Issue 1] Insurance Act (8) The Chief Executive may appoint any member of the staff of the Commission or any other person to be an investigator who shall have all the powers of the Chief Executive under this section and may require the person under investigation to— (a) produce to him at a reasonable time and at a place specified by him any document that may afford such evidence and that is in the possession of the relevant person or under hi nsee, registered person or associated party. I15 – 63 [Issue 1] Insurance Act (8) The Chief Executive may appoint any member of the staff of the Commission or any other person to be an investigator who shall have all the powers of the Chief Executive under this section and may require the person under investigation to— (a) produce to him at a reasonable time and at a place specified by him any document that may afford such evidence and that is in the possession of the relevant person or under his control; (b) give explanations or further information about such documents; (c) attend before the investigator at a reasonable time and place and answer under oath or solemn affirmation question relating to the matter. (9) Any person who— (a) fails to comply with any requirement of this section; (b) obstructs an investigator in the performance of any of his duties under this section; (c) fails, without reasonable cause, to comply with any direction of an investigator in the performance of his duties under this section; (d) in relation to any question put to him by an investigator in the performance of his duties under this section— (i) says anything, or provides any information or document, that the person— (A) knows to be false or misleading in a material particular; or (B) is reckless as to whether it is false or misleading in a material particular; (ii) refuses, without reasonable excuse, to answer, shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 3 years. [S. 96 amended by s. 30 of Act 16 of 2007 w.e.f. 28 September 2007.]