Investor Compensation Act, 1998
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Failure by investment firms to comply with obligations. |
27.—(1) The Company shall notify the supervisory authority where an investment firm which is not a member of a compensation scheme approved of by the supervisory authority under section 25 fails to comply with the obligations imposed on it by and under this Act. | |
(2) An approved professional body which has established a compensation scheme approved of by the supervisory authority under section 25 shall notify the supervisory authority where it has failed to ensure compliance by an investment firm which is a member of the scheme with the obligations to which it is subject by virtue of its membership of that scheme. | ||
(3) Where the supervisory authority has been informed in accordance with subsection (1) or (2) that an investment firm has failed to comply with obligations or where an investment firm has failed to comply with conditions or requirements imposed under section 21 , the supervisory authority may give a direction in writing to the investment firm and to the directors and those responsible for the management of that investment firm requiring the investment firm to do either or both of the following: | ||
(a) to comply with such obligations, or with those conditions or requirements imposed under section 21 including the payment of any outstanding sums owed by it to the Company or to the compensation scheme approved of under section 25 by a date specified by the supervisory authority, or | ||
(b) to suspend for such period (not exceeding twelve months) as shall be specified in the direction any or all of the following: | ||
(i) the carrying on of the business of an investment firm; | ||
(ii) the making of payments to which paragraph (a) does not relate; | ||
(iii) the acquisition or disposal of any assets or liabilities; | ||
(iv) entering into transactions of any kind specified by the supervisory authority or entering into them except in specified circumstances or to a specified extent; | ||
(v) soliciting business from persons of a kind specified by the supervisory authority or otherwise than from such persons; | ||
(vi) carrying on business in a manner specified by the supervisory authority or otherwise than in such a manner. | ||
(4) A direction under subsection (3) shall have effect from the date specified by the supervisory authority. | ||
(5) The Second Schedule shall apply as respects a direction by the supervisory authority under this section. |