Under this Chapter the Head of Financial Regulation may investigate a person’s fitness and probity to perform a controlled function where the Head forms the opinion there is reason to suspect lack of fitness and probity and that an investigation is warranted. Subsection (2) applies to persons who currently perform a controlled function for a regulated financial service provider or holding company, who performed such a function within six years before the commencement of the investigation (or a shorter period where applicable), or whom the Head knows or has reason to believe a regulated firm proposes or is considering appointing to a controlled function (other than a pre‑approval controlled function).

The Head may form that opinion where there is reason to suspect the person lacks the necessary experience, qualifications or skills; fails to satisfy a code standard of fitness and probity; has committed or participated in serious misconduct in relation to a regulated firm; as a pre‑approval appointee failed to make a required disclosure or made a knowingly false or misleading disclosure; provided information to the Bank, the Governor or the Head that was false or misleading (directly or indirectly); caused or sought to delay information requested by evidentiary notice; failed to comply with an evidentiary notice; or has been convicted of money laundering, terrorist financing or offences involving fraud, dishonesty or breach of trust.