| (1) |
A director, senior manager, public officer, auditor or any of their alternates, must be a person who has integrity. |
| (2) |
Subject to section 2(3), any of the following constitutes prima facie evidence that a person referred to in paragraph (1) does not have integrity: |
| (a) |
he or she has been convicted (and that conviction has not been expunged) or is the subject of any pending proceedings which may lead to such a conviction under any law in any jurisdiction of— |
| (i) |
an offence under a law relating to the regulation or supervision of a financial institution as defined in the Financial Institutions (Protection of Funds) Act, 2001 (Act No. 28 of 2001) or a corresponding offence under the law of a foreign country; |
| (ii) |
theft, fraud, forgery, uttering a forged document, perjury or an offence involving dishonesty; or |
| (iii) |
an offence under the Prevention of Corruption Act, 1958 (Act No. 6 of 1958), the Corruption Act, 1992 (Act No. 94 of 1992) or Parts 1 to 4, or section 17, 20 or 21, of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004), or a corresponding offence under the law of a foreign country; |
where the penalty imposed for the offence was or may be –
| (aa) |
imprisonment without the option of a fine; or |
| (b) |
he or she has been convicted (and that conviction has not been expunged) or is the subject of any pending proceedings which may lead to a conviction of any other offence committed after the Constitution of the Republic of South Africa, 1996, took effect, where the penalty imposed for the offence was or may be imprisonment without the option of a fine; |
| (c) |
he or she has accepted civil liability for, or has been the subject of a civil judgment in respect of, theft, fraud, forgery, uttering a forged document, misrepresentation or dishonesty under any law; |
| (d) |
he or she has been the subject of frequent or severe preventative, remedial or enforcement actions by the Authority or a regulatory authority; |
| (e) |
he or she has been removed from an office of trust for theft, fraud, forgery, uttering a forged document, misrepresentation or dishonesty; |
| (f) |
he or she has breached a fiduciary duty; |
| (g) |
he or she has an impaired ability to discharge his or her duties in respect of the insurance business of the insurer because of a conflict of interest or any other reason; |
| (h) |
he or she has seriously or persistently failed to or is failing to manage any of his or her financial obligations (including debts) satisfactorily, including— |
| (i) |
having been the subject of a civil judgment in respect of unpaid debts, which debt remains unpaid or be the subject of any pending proceedings which may lead to such a judgment; or |
| (ii) |
having been sequestrated or being the subject of any pending proceedings which may lead thereto under the Insolvency Act, 1936 (Act No. 24 of 1936) or a corresponding law of a foreign country, and has not been rehabilitated in terms of that Act or law; |
| (i) |
he or she has been or is being suspended, dismissed or disqualified from acting as a director, senior manager, public officer, auditor or statutory actuary (or his or her alternate) under any law; or |
| (j) |
he or she has been refused a registration, authorisation or licence to carry out a trade, business or profession, or has had that registration, authorisation or licence revoked, withdrawn or terminated by a regulatory authority; |
| (k) |
he or she has been denied registration or membership of any professional body or has had that registration or membership revoked, withdrawn or terminated by a professional body because of matters relating to honesty, integrity, or business conduct; |
| (I) |
he or she has been or is being disciplined, reprimanded, disqualified, or removed in relation to matters relating to honesty, integrity or business conduct by a— |
| (i) |
professional body; or |
| (ii) |
regulatory authority; |
| (m) |
he or she has knowingly been untruthful or provided false or misleading information to, or been uncooperative in any dealings with, the Authority or a regulatory authority; |
| (n) |
he or she has demonstrated a lack of readiness and willingness to comply with legal, regulatory or professional requirements and standards; |
| (o) |
he or she has been found to be not fit and proper by the Authority or a regulatory authority in any previous assessments of fit and properness and the reasons for being found not fit and proper have not been remedied; or |
| (p) |
he or she has been involved or is involved as a director or senior manager, or is concerned in the management, of a business that has been— |
| (i) |
the subject of any matter referred to in subparagraphs (a), (c), (d), (j), (I)(ii), (m), (n) or (o); or |
| (ii) |
placed in liquidation or business rescue while that person has been connected with that organisation or within one year of that connection. |
Special Investigating Units and Special Tribunals Act, 1996
