(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—
(a) engaging in unsafe or unsound practices in conducting the business of the regulated entity;
(b) violating any law, regulation or guideline issued by the Authority or to which the regulated entity or person is subject.
(2) If the Authority has reasonable cause to believe that the practices or violations referred in subsection (1)(a) and (b) 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.
(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)
(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)
(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)