• AU-4.5 AU-4.5 Withdrawal of a License or Closure of a Branch

    • Licenses

      • Voluntary Surrender of a License or Closure of a Branch

        • AU-4.5.1

          In Accordance with Article 50 of the CBB Law, all requests for the voluntary surrender of a license or closure of a branch are subject to CBB approval. Such requests must be made in writing to the Executive Director of Banking Supervision, setting out in full the reasons for the request and how the voluntary surrender or branch closure is to be carried out.

          January 2013

        • AU-4.5.2

          Licensees must satisfy CBB that their customers' interests are to be safeguarded during and after the proposed voluntary surrender or closure of the branch.

          January 2013

        • AU-4.5.3

          The CBB will only approve a voluntary surrender where it has no outstanding regulatory concerns and any relevant customers' interests would not be prejudiced. A voluntary surrender will not be accepted where it is aimed at pre-empting supervisory actions by the CBB. Also, a voluntary surrender will only take effect once the licensee, in the opinion of the CBB, has discharged all its regulatory responsibilities to customers.

          January 2013

      • Cancellation of a License by the CBB

        • AU-4.5.4

          As provided for under Article 48 (c) of the CBB Law, the CBB may itself move to cancel a license. 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 the licensee's right to appeal the formal notice of cancellation issued by the CBB.

          January 2013

        • AU-4.5.5

          Cancellation of a license requires CBB to issue a formal notice of cancellation to the person concerned. The notice of cancellation must describe the CBB's rationale for the proposed cancellation, as specified in Article 48(d) of the CBB Law.

          January 2013

        • AU-4.5.6

          Where cancellation of a license has been confirmed by CBB, the CBB will only effect the cancellation once a licensee has discharged all its regulatory responsibilities to customers. Until such time, CBB will retain all its regulatory powers with regards to the licensee, and will direct the licensee such that no new regulated financing activity may be undertaken whilst the licensee discharges its obligations to customers.

          January 2013

      • Cancellation of Approved Person Status

        • AU-4.5.7

          In accordance with Paragraph AU-4.3.8, licensees must promptly notify the CBB in writing, as soon as they become aware, when a person undertaking a controlled function will no longer be carrying out that function. If a controlled function falls vacant, the 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, the licensee must make immediate interim arrangements to ensure continuity of the duties and responsibilities of the controlled function affected. These interim arrangements must be approved by the CBB.

          January 2013

        • AU-4.5.8

          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.

          January 2013

        • AU-4.5.9

          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.

          January 2013