FINANCIAL SERVICES COMMISSION ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Establishment of the Financial Services Commission

   4   Appointment of Executive Director and other officers and employees

   5   Delegation of power by Executive Director

   6   Functions of the Commission

   7   Ministerial directions

   8   Actual or apprehended insolvency

   9   Compensation funds

   10   Funds and resources of the Commission

   11   Power to invest moneys

   12   Accounts and audit

   13   Annual report and estimates

   14   Exemption from income tax

   15   Obligation to secrecy

   16   Disclosure of information in certain circumstances

   17   Special audit or examination

   18   Power to make regulations

   19   Establishment of Tribunal

   20   Vesting of assets

   21   Penalties

   22   Immunity

   23   Reinstatement of licence or registration

      SCHEDULES

 

THE FINANCIAL SERVICES COMMISSION ACT

[Date of Commencement: 2nd August 2001; except section 2, paragraph (a) of the definition of "financial services"; the provisions of the Fourth Schedule in respect of the Insurance Act: 4th March, 2005]

Acts
9 of 2001,
30 of 2004.

1   Short title

   This Act may be cited as the Financial Services Commission Act.

Preliminary (section 2)

2   Interpretation

   In this Act, unless the context otherwise requires-

   "authorised officer" means a person authorised by the Commission for the purposes of this Act;

   "Executive Director" means the Executive Director appointed under section 4;

   "Commission" means the Financial Services Commission established under section 3;

   "financial services" means services provided or offered in connection with-

   (a)   insurance;*

   (b)   the acquisition or disposal of-

         (i)   securities within the meaning of the Securities Act;

         (ii)   units under a registered unit trust scheme within the meaning of the Unit Trusts Act;

   (c)   such other services as the Minister may by order declare to be financial services for the purposes of this Act;

   "functions" includes duties and powers;

   "licence" means a licence issued pursuant to any relevant Act;

   "prescribed financial institution" means an institution or person offering or providing financial services to the public;

   "relevant Act" means the Act which governs the financial service provided by a prescribed financial institution.

Establishment (sections 3-5)

3   Establishment of the Financial Services Commission

   (1) There shall be established for the purposes of this Act, a body to be called the Financial Services Commission which shall be a body corporate to which section 28 of the Interpretation Act shall apply.

   (2) The provisions of the First Schedule shall have effect as to the constitution and procedure of the Commission and otherwise in relation thereto.

4   Appointment of Executive Director and other officers and employees

   (1) The Commission shall appoint and employ an Executive Director who shall hold office for a period not exceeding five years and may be re-appointed for periods not exceeding five years at a time.

   (2) The Executive Director shall be responsible for the day to day management of the Commission.

   (3) The Commission may appoint and employ at such remuneration and on such terms and conditions as it thinks fit, such other officers and employees as it thinks necessary for the proper carrying out of the provisions of this Act:

   Provided that, except with the prior approval of the Minister-

   (a)   no salary in excess of the prescribed rate shall be assigned to any post; and

   (b)   no appointment shall be made to any post to which a salary in excess of the prescribed rate is assigned,

and for the purposes of this subsection the "prescribed rate" shall be such rate as the Minister may prescribe by order subject to affirmative resolution.

   (4) The Governor-General may, subject to such conditions as he may impose, approve the appointment of any officer in the service of the Government to any office with the Commission and any officer so appointed shall, while so employed, in relation to other rights as a public officer be treated as continuing in the service of the Government.

   (5) It shall be lawful for the Commission, with the approval of the Minister-

   (a)   to enter into arrangements respecting schemes whether by way of insurance policies or not; or

   (b)   to make regulations,

for pensions, gratuities and other retiring or disability or death benefits relating to members and employees of the Commission and such arrangements or regulations may include provisions for the grant of benefits to the dependents and legal personal representatives of such members or employees.

5   Delegation of power by Executive Director

   (1) The Executive Director may in writing, with the approval of the Commission, delegate any of his powers or the performance of any duties conferred on him by or under this Act to a person specified in the instrument of delegation.

   (2) A delegation under subsection (1) shall not prevent the exercise of the powers or the performance of the duties by the Executive Director.

General Duties and Powers (sections 6-9)

6   Functions of the Commission

   (1) For the purpose of protecting customers of financial services, the Commission shall-

   (a)   supervise and regulate prescribed financial institutions;

   (b)   promote the adoption of procedures designed to control and manage risk, for use by the management, boards of directors and trustees of such institutions;

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