Revised Laws of Saint Lucia (2023)

37.   Authority's powers and measures for preventing adverse consequences

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   (1)   If, in the opinion of the Authority, an examination authorised under section 36 shows that the regulated entity concerned or any affiliate, director, officer, employee, or significant shareholder of the regulated entity is—

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      (a)     engaging in unsafe or unsound practices in conducting the business of the regulated entity;

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      (b)     violating any law, regulation or guideline issued by the Authority or to which the regulated entity or person is subject.

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   (2)   If the Authority has reasonable cause to believe that the practices or violations referred in subsection (1)(a) and (b) have occurred, are occurring or are likely to occur, the Authority may issue a direction requiring such remedial action as it deems necessary to the regulated entity or any affiliate, director, officer, employee, or significant shareholder of the regulated entity. (Amended by Act 4 of 2022)

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   (3)   A direction issued by the Authority under subsection (2) shall be deemed to take effect from the date specified. (Amended by Act 7 of 2016)

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   (4)   Where a regulated entity or an affiliate of a regulated entity, or any director, officer, employee or significant shareholder of a regulated entity fails to comply with a direction issued by the Authority under subsection (2), the Authority may suspend or revoke the licence of a regulated entity in accordance with the relevant enactment specified in Schedule 1. (Amended by Act 7 of 2016)

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   (5)   A regulated entity or an affiliate of a regulated entity, or a director, officer, employee or significant shareholder of a regulated entity who fails to comply with a direction issued by the Authority under subsection (2) commits an offence and is liable on summary conviction to a fine not exceeding one $100,000 or to imprisonment for a term not exceeding 4 years. (Amended by Act 7 of 2016)

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   (6)   Notwithstanding subsection (2) and an enactment specified in Schedule 1, the Authority may appoint, at the expense of the regulated entity, for a period of 3 months, a person to assume control of the regulated entity's affairs where the Authority has reasonable cause to believe that the practices or violations under subsection (1)(a) and (b) have occurred, are occurring or are likely to occur. (Inserted by Act 4 of 2022)

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   (7)   A person appointed under subsection (6)—

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      (a)     has all the powers of a person appointed as a receiver or a receiver-manager under the Companies Act, or any other law under which the receiver or receiver-manager is appointed;

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      (b)     shall, within 3 months of the date of appointment, prepare and furnish to the Authority a report of the affairs of the regulated entity.

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   (Inserted by Act 4 of 2022)

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   (8)   On receipt of a report under subsection (7)(b), the Authority may extend the appointment period under subsection (6) for a further period not exceeding 6 months. (Inserted by Act 4 of 2022)

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   (9)   A person whose appointment has been extended under subsection (8) shall, at the end of the extension period, prepare and furnish to the Authority a report of the affairs of the regulated entity. (Inserted by Act 4 of 2022)

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   (10)   A report under subsection (7)(b) or (9) must contain, with respect to the regulated entity, the recommendations of the person appointed under subsection (6). (Inserted by Act 4 of 2022)

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   (11)   On receipt of a report under subsection (7)(b) or (9), the Authority may—

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      (a)     revoke the appointment of the person under subsection (6);

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      (b)     in a manner approved by the Authority, allow the regulated entity to reorganize its affairs;

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      (c)     revoke the licence of the regulated entity;

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      (d)     make an application to the court for an order that the regulated entity be wound up by the court.

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   (Inserted by Act 4 of 2022)