| (1) |
The registrar may, subject to subsection (2), cancel the registration of a manager under this Act if— |
| (a) |
he or she is satisfied that the manager has contravened or failed to comply with any provision of this Act, or any direction or requirement given or imposed under this Act, and that such contravention or failure has resulted or may result in serious prejudice to the interests of the public or of investors; |
| (b) |
he or she is satisfied, upon completion of an investigation or inspection in terms of section 14, that the manner in which a manager carries on the business of a collective investment scheme is satisfactory or undesirable or not calculated to serve the best interests of its investors; |
| (c) |
it is apparent that the registration of the manager was obtained through misrepresentation; or |
| (d) |
a manager is wound up, either voluntarily or by the court, |
or may, on any ground referred to in paragraph (a), (b) or (c) suspend the registration of a manager for a period not exceeding 12 months at a time subject to such conditions as the registrar may determine.
| (2) |
The registrar may not cancel or suspend the registration of a manager on any ground contemplated in subsection (1)(a), (b) or (c) unless he or she has— |
| (a) |
notified the manager of his or her intention and of the grounds upon which he or she proposes to do so; |
| (b) |
allowed the manager to make representations to him or her in connection with the proposed cancellation or suspension; and |
| (c) |
afforded the manager a reasonable opportunity to rectify or eliminate the defect, irregularity or undesirable practice. |
| (3) |
An application for re-registration as a manager by a company whose registration has been cancelled under this section must be dealt with as if it were its first application for registration. |
| (4) |
If the registration of a manager is cancelled in terms of subsection (1)(a),(b) or (c), the provisions of this Act with regard to the continuance or the winding-up of the portfolio of a collective investment scheme or the winding-up of the manager apply: Provided that the registrar may in any such case direct the former manager to defray in whole or in part the expenses incurred in continuing the administration of the collective investment scheme, or in realising any of its assets, and also any remuneration to which a trustee or custodian may be entitled. |
| (5) |
If the registration of a manager has been suspended under subsection (1), the manager may not, during the period of suspension, issue any fresh participatory interests, but must, in respect of participatory interests issued, continue the administration of the collective investment scheme and deal with such interests in all respects as it would have been bound to do had its registration not been suspended. |
Protection of Businesses Act, 1978
