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  • BR-2.2 BR-2.2 Notification Requirements

    • Matters Having a Serious Supervisory Impact

      • BR-2.2.1

        A licensee must notify the CBB if any of the following has occurred, may have occurred or may occur in the near future:

        (a) The licensee failing to satisfy one or more of the Principles of Business referred to in Module PB;
        (b) Any matter which could have a significant adverse impact on the licensee's reputation;
        (c) Any matter which could affect the licensee's ability to continue to provide adequate services to its customers and which could result in serious detriment to a customer of the licensee;
        (d) Any matter in respect of the licensee that could result in material financial consequences to the financial system or to other licensees;
        (e) Any breach of any provision of the Rulebook (including a Principle);
        (f) A breach of any requirement imposed by the relevant law or by regulations or an order made under any relevant law by the CBB; or
        (g) If a licensee becomes aware, or has information that reasonably suggests that it has or may have provided the CBB with information that was or may have been false, misleading, incomplete or inaccurate, or has or may have changed in a material way, it must notify the CBB immediately (ref. BR-3.3.2).
        May 2011

      • BR-2.2.2

        The circumstances that may give rise to any of the events in Paragraph BR-2.2.1 are wide-ranging and the probability of any matter resulting in such an outcome, and the severity of the outcome, may be difficult to determine. However, the CBB expects licensees to consider properly all potential consequences of events.

        May 2011

      • BR-2.2.3

        In determining whether an event that may occur in the near future should be notified to the CBB, a licensee should consider both the probability of the event happening and the severity of the outcome should it happen. Matters having a supervisory impact could also include matters relating to a parent undertaking or controller that may indirectly have an effect on the licensee.

        May 2011

    • Legal, Professional, Administrative or other Proceedings Against a Fund Administration Licensee

      • BR-2.2.4

        A licensee must notify the CBB immediately of any legal, professional or administrative or other proceedings instituted against the licensee, controller or a close link including a parent undertaking of the licensee that is known to the licensee and is significant in relation to the licensee's financial resources or its reputation.

        May 2011

      • BR-2.2.5

        A licensee must notify the CBB of the bringing of a prosecution for, or conviction of, any offence under any relevant law against the licensee that would prevent the licensee from meeting the Principles of Business (Module PB) or any of its Directors, officers or approved persons from meeting the fit and proper requirements of Module AU.

        May 2011

    • Fraud, Errors and other Irregularities

      • BR-2.2.6

        A licensee must notify the CBB immediately if one of the following events arises and the event is significant:

        (a) It becomes aware that an employee may have committed a fraud against one of its customers;
        (b) It becomes aware that a person, whether or not employed by it, is acting with intent to commit fraud against it;
        (c) It identifies irregularities in its accounting or other records, whether or not there is evidence of fraud;
        (d) It suspects that one of its employees may be guilty of serious misconduct concerning his honesty or integrity and which is connected with the licensee's regulated or ancillary activities; or
        (e) Any conflicts of interest.
        May 2011

    • Insolvency, Bankruptcy and Winding Up

      • BR-2.2.7

        Except in instances where the CBB has initiated the following actions, a licensee must notify the CBB immediately of any of the following events:

        (a) The calling of a meeting to consider a resolution for winding up the licensee, a controller or close link, including a parent undertaking of the licensee;
        (b) An application to dissolve a controller or close link, including a parent undertaking of the licensee or to strike the licensee off the Register of Fund Administrators;
        (c) The presentation of a petition for the winding up of a controller or close link, including a parent undertaking of the licensee;
        (d) The making of any proposals, or the making of, a composition or arrangement with any one or more of the licensee's creditors, for material amounts of debt;
        (e) An application for the appointment of an administrator or trustee in bankruptcy to a controller or close link, including a parent undertaking of the licensee;
        (f) The appointment of a receiver to a controller or close link, including a parent undertaking of the licensee (whether an administrative receiver or a receiver appointed over particular property); or
        (g) An application for an interim order against the licensee, a controller or close link, including a parent undertaking of the licensee under the Bankruptcy and Composition Law of 1987 or similar legislation in another jurisdiction.
        May 2011

    • Other Supervisors

      • BR-2.2.8

        A licensee must notify the CBB immediately if it becomes subject to or ceases to be subject to the supervision of any overseas supervisor (including a home supervisor).

        May 2011

      • BR-2.2.9

        The supervisory regime and any legislative or foreign provisions to which that licensee, is subject, influence the CBB's approach to the supervision of the licensee.

        May 2011

    • External Auditor

      • BR-2.2.10

        A licensee must notify the CBB of the following:

        (a) Removal or resignation of auditor (ref. AA-1.2.1); or
        (b) Change in audit partner (ref. AA-1.3.3).
        May 2011

    • Approved Persons

      • BR-2.2.11

        A licensee must notify the CBB of the termination of employment of approved persons, including particulars of reasons for the termination and arrangements with regard to replacement (ref. AU-4.3.5).

        May 2011

      • BR-2.2.12

        Licensees must immediately notify the CBB when they become aware of any of the events listed in Paragraph EN-8.2.3, affecting one of their approved persons.

        May 2011

    • Capital Adequacy

      • BR-2.2.13

        In the event that a licensee fails to meet any of the requirements specified in Module CA (Capital Adequacy), it must, on becoming aware that it has breached the requirements, immediately notify the CBB in writing (ref. CA-1.1.5).

        May 2011

      • BR-2.2.14

        As specified in Article 58 of the CBB Law, a licensee must notify the CBB immediately of any matter that may affect its financial position, currently or in the future, or limit its ability to meet its obligations.

        May 2011

    • Outsourcing Arrangements

      • BR-2.2.15

        Licensees must immediately inform their direct supervisory contact at the CBB of any material problems encountered with an outsourcing provider.

        May 2011

    • Controllers

      • BR-2.2.16

        If, as a result of circumstances outside the licensee's knowledge and/or control, one of the changes to their controllers specified in Paragraph GR-5.1.1 is triggered prior to CBB approval being sought or obtained, the licensee must notify the CBB as soon as it becomes aware of the fact and no later than 15 calendar days after the change occurs (ref. GR-5.1.4).

        May 2011

      • BR-2.2.17

        As specified in Article 52 of the CBB Law, a licensee must notify the CBB of the following events:

        (a) If effective control over a licensee takes place indirectly whether by way of inheritance or otherwise.
        (b) Gaining control directly as a result of any action leading to it; or
        (c) The intention to take any of the actions that would lead to control.
        May 2011

    • Other Notification Requirements

      • BR-2.2.18

        Licensees must comply with any notification requirements applicable to them as stipulated in CBB Rulebook Volume 7 (CIU).

        Amended: October 2012
        May 2011