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INVESTMENT INTERMEDIARIES ACT, 1995
Supplementary Provisions in Relation to a Direction by a Supervisory Authority under section 21 of this Act
1. In this Schedule, a reference to an investment business firm includes reference to a proposed investment business firm, an authorised investment business firm, a former authorised investment business firm, a person who the supervisory authority has reasonable grounds to believe is acting as an investment business firm, an associated undertaking or related undertaking, or directors and those responsible for the management of an investment business firm.
3. An investment business firm to whom a direction has been given under section 21 of this Act may apply to the Court for, and the Court may grant, an order varying or setting aside the direction.
4. Where a supervisory authority applies to the Court for an order confirming a direction under section 21 of this Act, the Court may grant an order confirming the direction or setting it aside, or confirming it and, in the case of a direction made under section 21 (2) of this Act and subject to paragraph 5 of this Schedule, extending the period of its operation for such time not exceeding the period of 12 months from the date the direction commenced to have effect, as the Court may, having regard to the circumstances, consider appropriate.
5. In addition to, or in lieu of, an order under section 21 (2) of this Act, the Court may make such other order in the case as may appear to it to be necessary, including an order directing any person who holds money or other assets for or on behalf of the investment business firm or client of such investment business firm, or a specified person, not to dispose of any of those assets except on such conditions and in such circumstances as are specified in the order.
6. A direction which has been confirmed by the Court shall terminate—
(a) at the end of the period of operation specified by the Court,
(b) on the making by the Court of an order for termination on the application of the supervisory authority,
(c) on the making of a winding-up order in respect of the investment business firm or, where an investment business firm is constituted as an unincorporated body of persons, a dissolution order, or where an investment business firm is a sole trader, an adjudication of bankruptcy,
(d) on the making by the Court of an order for termination where the Court considers that the circumstances that gave rise to the direction have ceased to exist and that it would be unjust and inequitable not to make the order,
whichever first occurs.
7. If a supervisory authority forms the opinion that the investment business firm to whom the direction was given is able to meet its obligations to its creditors, investors or clients but the circumstances which gave rise to the direction are unlikely to be rectified, it shall forthwith apply to the Court for, and the Court may grant, an order directing the said investment business firm to prepare, in consultation with the supervisory authority, a scheme for the orderly termination of its business and the discharge of its liabilities to its creditors, investors and clients under the supervision of the supervisory authority and to submit it to the Court within two months for approval.
8. The Court shall not approve the terms of a scheme under paragraph 7 of this Schedule without hearing the relevant supervisory authority and, in the event of dispute about terms of the scheme, the supervisory authority or the investment business firm may apply to the Court to adjudicate on the matter.
9. If the investment business firm fails to comply with an order of the Court under paragraph 7 of this Schedule or fails to adhere to the scheme approved of by the Court, the supervisory authority may apply to the Court for, and the Court may make, such further order as it considers appropriate for the winding-up of the investment business firm or, where an investment business firm is constituted as an unincorporated body of persons, for the dissolution of the investment business firm, or where an investment business firm is a sole trader, that proceedings in bankruptcy be commenced, on the grounds that it is just and equitable that it be wound up, dissolved or cease trading.
10. The Court may by order revoke or amend an order made by it under paragraph 4 of this Schedule.
11. Where a direction is given by the supervisory authority in accordance with section 21 of this Act—
(a) the investment business firm to whom the direction has been given shall take all necessary steps to secure that its assets or client or investor assets wherever held, are not depleted without the prior authorisation of the supervisory authority, and
(b) the supervisory authority may direct a credit institution or any institution exempt under section 7 of the Central Bank Act, 1971 , or any other financial institution which holds an account of any description of the investment business firm including holdings of investment instruments of the investment business firm to which the direction has been given, to suspend the making of payments or other transactions from the account without the prior authorisation of the supervisory authority.