AI Summary of 26. Head of Financial Regulation may issue suspension notice, etc.
The Head of Financial Regulation has the authority to issue a suspension notice if a person's fitness and probity are under investigation or if a prohibition has been imposed. This action is aimed at ensuring the integrity of financial services and protecting users, necessitating that the individual not perform certain controlled functions during ongoing regulatory processes.
A suspension notice must be in writing, outlining the grounds for suspension, the specified functions impacted, and mandate that the involved parties show cause within five days. The notice also allows the imposition of terms and conditions on the regulated firm to enforce compliance.
26. Head of Financial Regulation may issue suspension notice, etc.
(1) The Head of Financial Regulation may issue a notice (in this Part called a ‘suspension notice’) in relation to a person if -
(a) subject to subsection (1A), the person’s fitness and probity is or has been the subject of an investigation under section 25, or
(b) the Bank or the Governor has imposed a prohibition on the person under section 43 (whether or not there has been any investigation under section 25),
and the Head of Financial Regulation is satisfied that it is necessary in the interests of the proper regulation of a regulated financial service provider or holding company that the person not perform the relevant controlled function, a part of the relevant controlled function, or any controlled function, while the Head of Financial Regulation, the Bank or the Governor, as the case may be, is carrying out any function in relation to the person under this Chapter or Chapter 4.
(1A) In paragraph (a) of subsection (1), the reference to an investigation under section 25 does not include an investigation in the circumstances referred to in paragraph (aa) of section 25(2), unless any other paragraph of section 25(2) also applies.