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Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)

Part III : Association of Collective Investment Schemes

31. Suspension of administration of collective investment scheme

 

(1) Subject to the other provisions of this section and despite any arrangement whereby a collective investment scheme may be administered by another member of an association—
(a) an executive committee may in accordance with the rules stop or suspend the administration of a collective investment scheme or part thereof by a member of an association;
(b) an executive officer of an association may, for a period not exceeding 30 days, suspend the administration of a collective investment scheme or part thereof by a member of an association with the approval of 75 per cent of the members of an executive committee if it is desirable or for the purposes of compliance with and enforcement of the rules and the other requirements of an association, without prior notice to any person and without hearing any person.

 

(2) Stoppage or suspension referred to in subsection (1)(a) may not be effected by the executive committee where the member concerned has not had the opportunity to make representations to the executive committee in support of the continued performance of an activity.

 

(3) In the case of—
(a) a stoppage or suspension of a particular activity by an executive committee in terms of subsection (1)(a); or
(b) a suspension of a particular activity by an executive officer in terms of subsection (1)(b),

the executive committee or executive officer, as the case may be, may permit other members of the association to continue the activity in question for the sole purpose of fulfilling any obligations entered into before the stoppage or suspension.

 

(4)
(a) Whenever the registrar considers it desirable in the public interest he or she may, after consultation—
(i) with the executive committee of an association, exercise any power referred to in subsection (1)(a);
(ii) with the executive officer of an association, exercise any power referred to in subsection (1)(b); or
(iii) with the executive committees of two associations, in a case contemplated in subparagraph (i), transfer the performance of a particular activity from one association to another; or
(iv) with the executive officers of two associations, in a case contemplated in subparagraph (ii), transfer the performance of a particular activity from one association to another.
(b) Subsections (2) and (3) apply to the exercise of the powers referred to in paragraph (a), and in such application a reference therein to an executive committee or an executive officer, as the case may be, is construed as a reference to the registrar.