| (1) | Despite any other law, the registrar may, by agreement with a financial institution and without the intervention of a court, appoint a statutory manager for that financial institution, if it appears that— |
| (a) | the financial institution— |
| (i) | has in a material respect failed to comply with a law; |
| (ii) | is likely to be in an unsound financial position; or |
| (iii) | is maladministered; and |
| (b) | it is advisable to appoint a statutory manager in order to protect— |
| (i) | the interests of the clients of the financial institution; |
| (ii) | the safety and soundness of financial institutions in general; or |
| (iii) | the stability, fairness, efficiency and orderliness of the financial system. |
| (2) | An appointment under subsection (1) takes effect immediately, but the registrar must, as soon as practicable, after the appointment and in any event within 30 days after the appointment, apply to the High Court for an order confirming the appointment. |
| (3) | On hearing the application in terms of subsection (2), the court must confirm the appointment, unless satisfied that the grounds for making the appointment no longer exist. |
| (4) | The statutory manager of a financial institution— |
| (a) | must be allowed full access to the accounting records, financial statements and other information relating to the affairs of the financial institution; |
| (b) | must participate in the management of the affairs of the financial institution with its executive directors or managers: Provided that where there is disagreement between the statutory manager and the executive directors of the financial institution, the statutory manager shall take the final decision; and |
| (c) | is entitled to receive such remuneration form the institution as the Court may order. |
| (a) | The statutory manager of a financial institution and the financial institution must manage the affairs of the institution with the greatest economy possible compatible with efficiency and, as soon as practicable, report to the registrar and indicate what steps should be taken to ensure that the financial institution— |
| (i) | complies with the law; |
| (ii) | becomes financially sound; and |
| (iii) | is properly administered. |
| (b) | if the statutory manager considers that it is not practicable to take steps in terms of paragraph (a), he or she must report to the registrar and must indicate— |
| (i) | whether steps should be taken to transfer the financial services business or a part thereof of the financial institution to an appropriate person and, if so, on what terms; or |
| (ii) | whether the financial institution should be wound up or placed under curatorship. |
| (6) | The statutory manager of a financial institution and the financial institution must comply with directives issued by the registrar from time to time in relation to the statutory manager's functions and report to the registrar should the statutory manager be hindered in giving effect to any such directives. |
| (7) | The statutory manager of a financial institution and the financial institution may, after giving notice to the registrar, at any time apply to the court for directions. |
| (8) | The registrar may at any time apply to the court to— |
| (a) | terminate the statutory management; or |
| (b) | remove a statutory manager from office and, subject to subsection (2), to confirm the appointment of a replacement. |
| (9) | The statutory manager of a financial institution is not liable for loss suffered by the financial institution unless it is established that the loss was caused by the statutory manager's fraud, dishonesty or wilful failure to comply with the law. |
| (10) | The provisions of this section must not be construed as limiting any of the powers of the registrar under section 5. |
[Section 5A inserted by section 162 of Act No. 45 of 2013]
