| (1) |
The Ombud Council may issue to a person who is an ombud, or to an ombud scheme, a written directive requiring the person to take action specified in the directive if the person has contravened or is likely to contravene a financial sector law in so far as it relates to ombud schemes. |
| (2) |
A directive issued in terms of subsection (1) must be aimed at achieving the objective of the Ombud Council set out in section 176 and stopping the ombud or ombud scheme from contravening applicable financial sector laws in so far as they relate to ombud schemes, or reducing the risk of such contraventions. |
| (3) |
The Ombud Council may not issue a directive that requires a specified person to be removed from a position or function in relation to an ombud scheme unless the person— |
| (c) |
no longer complies with applicable fit and proper person requirements. |
| (4) |
Before issuing a directive in terms of this section, the Ombud Council must— |
| (a) |
give the person to whom it is proposed to issue the directive a draft of the proposed directive and a statement of the reasons why the Ombud Council proposes issuing it, including a statement of the relevant facts and circumstances; and |
| (b) |
invite the person to make submissions on the matter, and give the person a specified period, which must be reasonable, to do so. |
| (5) |
If the directive requires a person to be removed from the person’s position or function in relation to an ombud scheme, the Ombud Council must also— |
| (a) |
give the person a draft of the proposed directive and a statement of the reasons why the Ombud Council proposes issuing it, including a statement of the relevant facts and circumstances; and |
| (b) |
invite the person to make submissions on the matter within the period specified in terms of subsection (4)(b). |
| (6) |
In deciding whether to issue the directive, the Ombud Council must take into account all submissions received by the end of the period referred to in subsection (4)(b). |
| (7) |
If the delay involved in complying, or complying fully, with subsections (4) and (5) in respect of a proposed directive is likely to lead to prejudice to financial customers or defeat the object of the directive, the Ombud Council may issue the directive without having complied, or complied fully, with those subsections. |
(8)
| (a) |
If the Ombud Council issues a directive without having complied, or complied fully, with subsection (4) or (5), the person to whom it was issued, and, where subsection (5) applies, the person referred to in that subsection, must be given a written statement of the reasons why those subsections were not complied with. |
| (b) |
A person to whom the statement was given in terms of paragraph (a) may make submissions to the Ombud Council within one month after being given the statement. |
| (c) |
The Ombud Council must consider the submissions, and notify the person, as soon as practicable, whether the Ombud Council proposes to revoke the directive. |
| (9) |
A directive in terms of this section must specify a reasonable period for compliance. |
| (10) |
The Ombud Council may at any time revoke a directive in terms of this section by written notice to the person to whom it was issued. |
| (11) |
A person to whom a directive in terms of this section has been issued must comply with the directive. |
[Section 202 to take effect on 1 April 2020, per Notice No. 1130 of 2019, GG 42677, dated 30 August 2019]
Contingency Fees Act, 1997
