PART 3 | REFUSAL, CANCELLATION AND SUSPENSION OF ACCREDITATION |
| Refusal to grant or renew accreditation |
5.—(1) The Controller may refuse to grant or renew an accreditation if —| (a) | the applicant has not complied with any requirement in the Act or these Regulations; | | (b) | the applicant has not provided the Controller with any information relating to it or any person employed by or associated with it for the purposes of its business, and to any circumstances likely to affect its method of conducting business, that the Controller may require; | | (c) | the applicant or its substantial shareholder is in the course of being wound up or liquidated; | | (d) | a receiver or a receiver and manager has been appointed to the applicant or its substantial shareholder; | | (e) | the applicant or its substantial shareholder has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with its creditors, being a compromise or scheme of arrangement that is still in operation; | | (f) | the applicant or its substantial shareholder or any trusted person has been convicted, whether in Singapore or elsewhere, of an offence the conviction for which involved a finding that it, he or she acted fraudulently or dishonestly, or has been convicted of an offence under the Act or these Regulations; | | (g) | the Controller is not satisfied as to the qualifications or experience of the trusted person who is to perform duties in connection with the accreditation of the applicant; | | (h) | the applicant fails to satisfy the Controller that it is a fit and proper person to be accredited or that all its trusted persons and substantial shareholders are fit and proper persons; | | (i) | the Controller has reason to believe that the applicant may not be able to act in the best interest of its subscribers, customers or participants having regard to the reputation, character, financial integrity and reliability of the applicant or any of its substantial shareholders or trusted persons; | | (j) | the Controller is not satisfied as to the financial standing of the applicant or its substantial shareholder; | | (k) | the Controller is not satisfied as to the record of past performance or expertise of the applicant or its trusted person having regard to the nature of the business which the applicant may carry on in connection with the accreditation; | | (l) | there are other circumstances which are likely to lead to the improper conduct of business by, or reflect discredit on the method of conducting the business of, the applicant or its substantial shareholder or any of the trusted persons; or | | (m) | the Controller is of the opinion that it is in the interest of the public to do so. |
| (2) In paragraph (1), “substantial shareholder”, in relation to an applicant which is a company, has the meaning given by the Companies Act 1967. |
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| Cancellation or suspension of accreditation |
6.—(1) An accreditation is deemed to be cancelled if the certification authority is wound up.(2) The Controller may cancel or suspend the accreditation of a certification authority —| (a) | on any ground on which the Controller may refuse to grant an accreditation under regulation 5; | | (b) | if any information furnished in support of the application for the accreditation was false, misleading or inaccurate; | | (c) | if the certification authority fails to undergo or pass an audit required under regulation 34; | | (d) | if the certification authority fails to comply with a direction of the Controller made under section 23 of the Act; | | (e) | if the certification authority is being or will be wound up; | | (f) | if the certification authority has entered into any composition or arrangement with its creditors; | | (g) | if the certification authority fails to carry on business for which it was accredited; | | (h) | if the Controller has reason to believe that the certification authority or its trusted person has not performed its, his or her duties efficiently, honestly or fairly; or | | (i) | if the certification authority fails to comply with any condition or restriction applicable in respect of the accreditation. |
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| (3) The Controller may cancel the accreditation of a certification authority at the request of that certification authority. |
| (4) The Controller must not cancel the accreditation under paragraph (2) without first giving the certification authority an opportunity of being heard. |
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| Inquiry into allegations of misconduct, etc. |
7.—(1) The Controller may inquire into any allegation that a certification authority, or an officer or employee of a certification authority, is or has been guilty of any misconduct or is no longer fit to continue to remain accredited by reason of any other circumstances which have led, or are likely to lead, to the improper conduct of business by it or to reflect discredit on the method of conducting business.(2) If, after inquiring into an allegation under paragraph (1), the Controller is of the opinion that the allegation is proved, the Controller may if he or she thinks fit —| (a) | cancel the accreditation of the certification authority; | | (b) | suspend the accreditation of the certification authority for any period, or until the happening of any event, that the Controller may determine; or | | (c) | reprimand the certification authority. |
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| (3) The Controller must, at the hearing of an inquiry into an allegation under paragraph (1) against a certification authority, give the certification authority an opportunity of being heard. |
| (4) Where the Controller is satisfied, after making an inquiry into an allegation under paragraph (1), that the allegation has been made in bad faith or that it is otherwise frivolous or vexatious, the Controller may, by written order, require the person who made the allegation to pay any costs and expenses involved in the inquiry. |
| (5) The Controller may issue directions to the certification authority for compliance under section 23 of the Act as a result of making the inquiry. |
(6) For the purposes of this regulation, “misconduct” means —| (a) | any failure to comply with the requirements of the Act or these Regulations or the certification practice statement of the certification authority concerned; and | | (b) | any act or omission relating to the conduct of business of the certification authority concerned which is or is likely to be prejudicial to public interest. |
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| Effect of cancellation or suspension of accreditation |
8.—(1) A certification authority whose accreditation is cancelled or suspended under regulation 6 or 7 is deemed, for the purposes of the Act and these Regulations, not to be accredited from the date that the Controller cancels or suspends the accreditation, as the case may be.(2) The cancellation or suspension of the accreditation of a certification authority does not operate so as to —| (a) | avoid or affect any agreement, transaction or arrangement entered into by the certification authority, whether the agreement, transaction or arrangement was entered into before or after the cancellation or suspension of the accreditation; or | | (b) | affect any right, obligation or liability arising under any such agreement, transaction or arrangement. |
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9.—(1) Where the Controller —| (a) | refuses to grant or renew an accreditation under regulation 5; | | (b) | cancels or suspends an accreditation under regulation 6; or | | (c) | cancels or suspends an accreditation, or reprimands a certification authority, under regulation 7, |
| any person who is aggrieved by the decision of the Controller may, within 14 days after the person is notified of the decision, appeal to the Minister and the decision of the Minister is final. |
| (2) If an appeal is made against a decision made by the Controller, the Controller may, if he or she thinks fit, defer the execution of the decision until the appeal has been decided by the Minister or the appeal is withdrawn. |
| (3) In considering whether to defer the execution of the decision, the Controller must have regard to whether the deferment is prejudicial to the interests of any subscriber of the certification authority or any other party who may be adversely affected. |
| (4) If an appeal is made to the Minister, a copy of the appeal must be lodged with the Controller. |
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