| (b) | induces or attempts to induce any person to become a member of, or to contribute to, a fund not registered under this Act; or |
| (c) | in any application in terms of this Act deliberately makes a misleading, false or deceptive statement or conceals any material fact, |
is guilty of an offence and liable on conviction to a fine not exceeding R10 million or to imprisonment for a period not exceeding 10 years, or to both such fine and such imprisonment.
[Section 37(1) amended by section 49(b) of Act No. 45 of 2013]
| (2) | The registrar may impose an administrative penalty in the case of any failure by a pension fund, administrator or third party to submit to the registrar or any other person within a period specified in terms of this Act or in a directive or condition imposed by the registrar in terms of the Act, any scheme, statement, report, return or other document or information required in terms of this Act to be submitted, not exceeding R1 000 or such other amount prescribed by the registrar for every day during which the failure continues. |
| (3) | Before imposing a penalty the registrar must in writing— |
| (a) | inform the administrator, pension fund or third party of his or her intention to impose a penalty; |
| (b) | specify the particulars of the alleged non-compliance; |
| (c) | provide reasons for the penalty intended to be imposed; |
| (d) | specify the amount of the penalty intended to be imposed; |
| (e) | invite interested persons to make representations within a period specified by the registrar. |
| (f) | [Section 37(3)(f) deleted by section 14(d) of Act No. 22 of 2008] |
| (4) | If the registrar after consideration of representations made decides to impose an administrative penalty, he or she must by written notice inform the administrator, pension fund or third party that it may, within 30 days after the date of the notice, pay the penalty or lodge an appeal in accordance with section 26 of the Financial Services Board Act, 1990 (Act No. 97 of 1990). |
| (5) | If an administrator, pension fund or third party fails to pay an administrative penalty the registrar may by way of civil action in a competent court recover such administrative penalty. |
[Section 37 amended by section 49(a) of Act No. 45 of 2013]
