Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)Chapter 10 : EnforcementPart 2 : Directives by financial sector regulators146. Consultation requirements |
| (1) | Before issuing a regulator’s directive in terms of this Part, the financial sector regulator must— |
| (a) | give the financial institution or person to whom it is proposed to issue the directive a draft of the proposed directive and a statement of the reasons why it is proposed to issue it, including a statement of the relevant facts and circumstances; and |
| (b) | invite the financial institution or person to make submissions on the matter, and give it a specified period, which must be reasonable, to do so. |
| (2) | If the directive requires removing a person from a specified position or function in or in relation to the financial institution, the financial sector regulator must also— |
| (a) | give the person a draft of the proposed directive and a statement of the reasons why it is proposed to issue it, including a statement of the relevant facts and circumstances; and |
| (b) | invite the person to make submissions on the matter within the period specified in terms of subsection (1)(b). |
| (3) | In deciding whether to issue the directive, the financial sector regulator must take into account all submissions received by the end of the period referred to in subsection (1)(b) or (2)(b). |
| (4) | If the delay involved in complying, or complying fully, with subsections (1) and (2) in respect of a proposed directive is likely to lead to prejudice to financial customers, prejudicially affect financial stability or defeat the object of the directive, the financial sector regulator may issue the directive without having complied, or complied fully, with those subsections. |
(5)
| (a) | If a financial sector regulator issues a directive without having complied, or complied fully, with subsections (1) and (2), the person to whom it was issued, and, where subsection (2) applies, the person referred to in that subsection must be given a written statement of the reasons why those subsections were not complied with. |
| (b) | A person to whom the statement was given may make submissions to the financial sector regulator within one month after being provided with the statement. |
| (c) | The financial sector regulator must consider the submissions, and notify the person, as soon as practicable, whether the financial sector regulator proposes to revoke the directive. |