AU-5.5 AU-5.5 Cancellation of Authorisation
Voluntary Surrender of a License or Closure of a Branch
AU-5.5.1
In accordance with Article 50 of the CBB Law,
investment firm licensees wishing to cancel their license or cease activities for a branch must obtain the CBB's written approval, before ceasing their activities. All such requests must be made in writing to the Director, Financial Institutions Supervision, setting out in full the reasons for the request and how the business is to be wound up.Amended: October 2011
Amended: July 2010
Amended: July 2007AU-5.5.2
Investment firm licensees must satisfy the CBB that their customers' interests are to be safeguarded during and after the proposed cancellation. The requirements contained in Module GR regarding cessation of business must be satisfied.Amended: July 2007AU-5.5.3
Failure to comply with Rule AU-5.5.1 constitutes a breach of Article 50(a) of the CBB Law. The CBB will only approve such a request where it has no outstanding regulatory concerns and any relevant customer interests would not be prejudiced. A voluntary surrender of a license will not be accepted where it is aimed at pre-empting supervisory actions by the CBB. A voluntary surrender will only be allowed to take effect once the
licensee , in the opinion of the CBB, has discharged all its regulatory responsibilities to customers.Amended: January 2011
Amended: July 2007Cancellation of a License by the CBB
AU-5.5.4
As provided for under Article 48(c) of the CBB Law, the CBB may itself move to cancel a license, for instance if a
licensee fails to satisfy any of its existing license conditions or protecting the legitimate interests of customers or creditors of thelicensee requires a cancellation. The CBB generally views the cancellation of a license as appropriate only in the most serious of circumstances, and generally tries to address supervisory concerns through other means beforehand. See also Chapter EN-7, regarding the cancellation or amendment of licenses, including the procedures used in such instances and thelicensee's right to appeal the formal notice of cancellation issued by the CBB.Amended: October 2011
Amended: July 2007AU-5.5.4A
Cancellation of a license requires the CBB to issue a formal notice of cancellation to the
licensee concerned. The notice of cancellation describes the CBB's rationale for the proposed cancellation, as specified in Article 48(d) of the CBB Law.Amended: October 2012
Adopted: October 2011
AU-5.5.4B
Where the cancellation of a license has been confirmed by the CBB, the CBB will only effect the cancellation once a
licensee has discharged all its regulatory responsibilities toclients . Until such time, the CBB will retain all its regulatory powers towards thelicensee and will direct thelicensee so that no newregulated investment services may be undertaken whilst thelicensee discharges its obligations to itsclients .Adopted: October 2011Cancellation of Approved Person Status
AU-5.5.5
In accordance with Paragraph AU-5.2.8,
investment firm licensees must promptly notify the CBB in writing as soon as they become aware, when a person undertaking acontrolled function will no longer be carrying out that function. If acontrolled function falls vacant, theinvestment firm licensee must appoint a permanent replacement (after obtaining CBB approval), within 120 calendar days of the vacancy occurring. Pending the appointment of a permanent replacement, theinvestment firm licensee must make immediate interim arrangements to ensure continuity of the duties and responsibilities of thecontrolled function affected, provided that such arrangements do not pose a conflict of duties. These interim arrangements must be approved by the CBB.Amended: July 2015
Amended: January 2012
Amended: July 2010
Amended: April 2008
Amended: July 2007AU-5.5.6
The explanation given for any such changes should simply identify if the planned move was prompted by any concerns over the person concerned, or is due to a routine staff change, retirement or similar reason.
Amended: July 2007AU-5.5.7
The CBB may also move to declare someone as not 'fit and proper', in response to significant compliance failures or other improper behaviour by that person: see Chapter EN-8 regarding the cancellation of 'fit and proper' approval.
Amended: July 2007
