EN-7 EN-7 Cancellation or Amendment of License
EN-7.1 EN-7.1 Legal Source
EN-7.1.1
Article 48 of the CBB Law empowers the CBB to cancel or amend a license under certain circumstances. These include cases where a
licensee has:(a) Failed to satisfy its license conditions;(b) Violated the terms of the CBB Law, Regulations or Rulebook;(c) Failed to start business within six months from the date of the license being issued;(d) Ceased to carry out the licensed activities permitted; or(e) Not acted in the legitimate interest of itscustomers or creditors.October 2010EN-7.1.2
Article 48(d) of the CBB Law requires the CBB to give the
licensee concerned at least 30 calendar days in which to appeal any proposed cancellation or amendment of its license.October 2010EN-7.2 EN-7.2 CBB Policy
EN-7.2.1
When used as an enforcement tool, the CBB views cancelling a license as appropriate only in the most serious of circumstances, when faced with the gravest of contraventions or when left with no other reasonable means of successfully addressing the regulatory failings in question. Cancellation or amendment of a license, however, may also be required in circumstances outside of an enforcement context, for instance because of a change in the business profile of a
licensee .October 2010EN-7.2.2
When used as an enforcement tool, the criteria used by the CBB in assessing whether to seek the cancellation or amendment of a license include:
(a) The extent to which the interests of the market, its users and those who have a claim on thelicensee would be best served by the cancellation or amendment of the license;(b) The extent to which other supervisory penalties could reasonably be expected to achieve the CBB's desired supervisory objectives;(c) The extent to which thelicensee has contravened the conditions of its license and/or the CBB Law, including the seriousness, duration and/or frequency of the contravention(s) concerned, and the extent to which the contraventions reflect more widespread or systemic weaknesses in controls and/or management;(d) The extent to which thelicensee has been involved in financial crime or other criminal conduct; and(e) Thelicensee 's past compliance record and conduct following the contravention (s).October 2010EN-7.2.3
When the CBB issues a notice of cancellation or amendment as an enforcement tool, it will only implement the actual change once it is satisfied that there are no longer any regulated activities for which it is necessary to keep the current authorisation in force. Until such time as these activities have been run off or moved to another
licensee , the CBB will control these activities through other means (such as taking thelicensee into administration or through issuing Directions).October 2010EN-7.3 EN-7.3 Procedure for Amendment or Cancellation of License
EN-7.3.1
All proposals for cancelling or amending a license as an enforcement tool are subject to a thorough review by the CBB of all relevant facts, assessed against the criteria outlined in Paragraphs EN-7.2.1 and EN-7.2.2. After being assessed at the Executive Director level, proposals are submitted to H.E. the Governor for approval.
October 2010EN-7.3.2
Once approved within the CBB, a formal notice of cancellation or amendment is issued to the
licensee concerned. The notice of cancellation or amendment will describe the factual circumstances of the contraventions concerned, and the CBB's rationale for the proposed cancellation or amendment, as measured against the criteria outlined in Paragraphs EN-7.2.1 and EN-7.2.2.October 2010EN-7.3.3
The
licensee has 30 calendar days from the date of the notice in which to lodge an appeal. The appeal should be addressed to the Board of the CBB, and copied to H.E. the Governor of the CBB.October 2010EN-7.3.4
If an appeal is lodged, the Board of the CBB will make a final ruling within 60 calendar days of its date of issuance.
October 2010EN-7.3.5
A
licensee may appeal to a competent court within 60 days of the above final ruling for a decision. The court's decision will then be final.October 2010
