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Financial Institutions (Protection of Funds) Act, 2001 (Act No. 28 of 2001)

Board Notices

Guidelines on the Conduct of Curators

9. Legal proceedings and forensic investigations conducted by curator

 

(1) Legal proceedings to be instituted or defended by a curator or any forensic investigation to be conducted with respect to the institution must be entrusted to an independent firm appointed by the curator, subject to the approval of the registrar.

 

(2) Despite subparagraph (1), a curator may apply to the registrar for authorisation to utilise the curator's firm for the purpose of instituting or defending legal proceedings, or for conducting a forensic or other investigation in relation to the institution or its business.

 

(3) An application by the curator under subparagraph (2) must set out all material aspects justifying the use of the curator's firm instead of an independent firm.

 

(4) The registrar may—
(a) in exceptional circumstances but subject to subparagraph (5), grant the application contemplated in subparagraph (2) with regard to all legal proceedings or forensic investigations during the curatorship, or relating to specific legal proceedings or an investigation only;
(b) impose any condition to which the approval is subject.

 

(5) Despite any provision of these Guidelines, the following legal proceedings or investigations may not be undertaken by the curator's firm:
(a) those instituted against the curator in which the conduct or integrity of the curator is, or may be, an issue;
(b) an application to set aside or alter any decision made, or any action taken, by the curator with regard to any matter arising from, or in connection with, the control and management of the business of the institution;
(c) an application to cancel the appointment of a curator as envisaged in section 5(9) of the Act; or
(d) any other legal proceedings or forensic investigation as may from time to time determined by the registrar and communicated to the curator in writing.