| (1) |
If any return under this Act indicates that a registered fund is not in a sound financial condition as determined in accordance with prudential standards, the Authority may, save as provided in section 29, direct the fund to submit a scheme setting out the arrangements which have been made, or which it intends to make, to bring the fund into a financially sound condition within such period, and subject to such conditions, as determined by the Authority. |
[Section 18(1) substituted by section 290, item 5(a) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) - effective 28 September 2018 (paragraph (c)(i) of Notice No. 1019, GG 41947, dated 28 September 2018]
| (1A) |
When any return under this Act indicates a deficiency in a registered fund, the fund shall, within three months from the date of such return, submit a scheme to the registrar setting out the arrangements which have been made or which it is intended to make to eliminate the deficiency, together with a report thereon by a valuator. |
| (2) |
If a registrar finds that a scheme submitted in terms of subsection (1) or (1A) is not inconsistent with the provisions of this Act and is satisfied that the arrangements set out therein should suffice to accomplish the objects of this section, he shall approve the scheme. |
| (3) |
If the registrar is not satisfied regarding the matters referred to in subsection he shall request the fund to make such amendments to the scheme, or to submit such new scheme, as will enable him to be so satisfied, and the fund shall comply with the request within a period prescribed by the registrar, not being less than 30 days from the date of the request, and shall at the same time furnish to the registrar a report on such amendments or such new scheme by the valuator or auditor mentioned in subsections (1) and (1A), and the provisions of subsection (2) shall apply to any such amended scheme or new scheme which the fund may submit. |
| (4) |
The fund shall carry out the terms of any scheme approved by the registrar under this section: Provided that— |
| (a) |
the registrar may, if he is satisfied that none of the objects of this section would be thereby prejudiced, permit the said fund to amend such scheme from time to time; |
| (b) |
if any return deposited with the registrar during the currency of such scheme in terms of this Act shows, in the opinion of the registrar, that the scheme is unlikely to accomplish the objects of this section, he may withdraw his approval of the scheme, and the fund concerned shall, within three months thereafter, prepare a further scheme, to which the provisions of this section shall apply; and |
| (c) |
if any such return shows, in the opinion of the registrar, that the financial condition of the fund is no longer unsound, he shall communicate with the principal officer of the fund to that effect and on receipt of such communication the obligations of the fund in respect of that scheme shall terminate immediately. |
| (a) |
The Authority may at any time, if it is necessary in the interests of the members of a fund, direct that an investigation in terms of section 16 or an audit or both an audit and such investigation be conducted into the financial position of a fund generally or with reference to any financial aspect of the fund. |
[Section 18(5)(b) substituted by section 290, item 5(b) in Schedule 4, of Notice No. 853 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]]
| (b) |
The costs pertaining to the audit or investigation contemplated in paragraph (a) shall constitute a first charge on the assets of the fund unless otherwise determined by the registrar. |
| (c) |
Following the audit or investigation contemplated in paragraph (a) a report must, within the time and in the format stipulated by the registrar, be to the registrar and the board. |
Special Investigating Units and Special Tribunals Act, 1996
