MUTUAL FUND ACT, 1997

PART VI - MISCELLANEOUS PROVISIONS

22. (1) Subject to subsections (2) and (3), the Authority, an authorised officer or staff of the Authority and a licensed mutual fund administrator and its staff shall not disclose any information relating to -

(a) an application made for a licence under this Act,

(b) the affairs of a mutual fund,

(c) the affairs of a mutual fund administrator, or

(d) the affairs of an investor in a mutual fund,

which they have acquired in the course of their duties or the exercise of their functions under this Act and shall not use any such information for their own benefit.

(2) Subsection (1) shall not apply to a disclosure -

(a) necessary for the effective regulation of a mutual fund,

(b) when lawfully required or permitted to do so by a court on the application of the Attorney-General in connection with an investigation, inquiry, proceeding or trial of a criminal offence under the laws of Seychelles or in relation to an application under the Mutual Assistance in Criminal Matters Act;

(c) ordered by a court where the court is satisfied that the disclosure is bona fide required for the purpose of a civil proceeding; or

(d) in the case of a unit trust established under the International Trusts Act, permitted under that Act.

(3) The Authority may disclose to a mutual fund regulating authority outside Seychelles general information of a statistical nature about a mutual fund or a mutual fund administrator that does not disclose the identity of investors, unless such disclosure is otherwise permitted.

23. If an auditor in the course of carrying out an audit of the accounts of a licensed mutual fund or of a licensed mutual fund administrator becomes aware or has reason to believe that the mutual fund or the mutual fund administrator -

(a) is carrying on business without keeping sufficient accounting records to allow its accounts to be properly audited, or

(b) is carrying on or attempting to carry on business or is winding up its business in a manner that is prejudicial to its investors or creditors,

the auditor shall immediately give the Authority written notice of the fact of becoming so aware or of having reason for so believing and of the reasons therefor.

24. (1) Where the Authority revokes a licence or imposes conditions or further conditions or amends or revokes a condition under section 20(3) of a mutual fund or section 21(3) of a mutual fund administrator -

(a) it shall, by notice in writing, inform the person who was or is the holder of the licence accordingly; and

(b) the person shall, forthwith upon being informed under paragraph (a), cease to carry on the business in respect of which the licence was issued or comply with the conditions, further conditions, amended conditions or the fact of the revocation of a condition as the case may be.

(2) The person whose licence has been revoked may, within 10 days after the date of the service of the notice under subsection (a), make written representation to the Authority.

(3) The Authority shall, as soon as practicable but in any event not later than 28 days after receiving the representation under subsection (1), consider any representation made under that subsection and decide whether to confirm or rescind its decision to revoke the licence, impose a condition or further conditions in respect of the licence or amend or revoke a condition of the licence.

(4) The Authority may, under subsection (3), rescind the revocation of a licence subject to conditions.

25. A person aggrieved by a decision taken by the Authority under this Act may appeal to the Supreme Court against the decision but the a decision of the Authority on any matter of a purely administrative nature is final.

26. Where under this Act an obligation is imposed on a licensed mutual fund or a licensed mutual fund administrator the operator and senior officers and, in the case of a mutual fund, the promoters of the mutual fund shall be responsible to ensure that the mutual fund or the mutual fund administrator complies with the obligation.

27. The written law specified in column 1 of the Schedule shall to the extent specified in column 2 of the Schedule not apply to a licensed mutual fund or licensed mutual fund administrator.

28. (1) A person who -

(a) being an operator of a mutual fund, contravenes section 3(6) or section 4(5);

(b) contravenes to comply with section 7,

(c) being an operator of a mutual fund administrator, contravenes section 8(5);

is guilty of an offence and liable on conviction to a fine of R500,000 and to imprisonment for 5 years.

(2) A licensed mutual fund administrator which fails to comply with a direction under section 10 or contravenes section 11 is guilty of an offence and liable on conviction to a fine of R500,000.

(3) A licensed mutual fund which contravenes section 5, or a licensed mutual fund administrator which contravenes section 9 or 12 or a licensed mutual fund or licensed mutual fund administrator which fails to comply with a direction, requirement or request under section 14, 15, 16, 17 or 18 or a condition of its licence is guilty of an offence and liable on conviction to a fine of R20,000.

(4) An operator or senior officer of a mutual fund or a mutual fund administrator or a promoter of a mutual fund who contrary to section 26 fails to ensure that the mutual fund or mutual fund administrator complies with an obligation under this Act is guilty of an offence and liable on conviction, where a penalty is not otherwise provided, to a fine of R100,000 and imprisonment for 5 years.

(5) A person who supplies false or misleading information to the Authority is guilty of an offence and liable on conviction -

(a) in the case of an individual, to a fine of R50,000 and imprisonment for 3 years;

(b) in the case of a body corporate, to a fine of R100,000.

(6) A person who refuses to supply information when required to do so under this Act is guilty of an offence and liable on conviction, where a penalty has not otherwise been provided, to a fine of R20,000.

(7) A person -

(a) who is not a licensed mutual fund or mutual fund administrator and who holds out or makes any representation that the person is so licensed;

(b) who uses as part of its name the words "mutual fund" or "mutual fund administrator" or any contraction or imitation of those words or any expression, word or abbreviation which tends to convey the impression that the person is a mutual fund or mutual fund administrator when the person is not a licensed mutual fund or mutual fund administrator,

is guilty of an offence and liable on conviction to a fine of R100,000 and to imprisonment for 5 years.

29. Where a person is convicted of an offence under section 28, the person shall, in addition to the penalty provided under the section for the offence, liable to a further fine of R1000 for each day during which the contravention which constitutes the offence has continued.

30. (1) The Minister, after consultation with the Authority, may make regulations for carrying out the purposes of this Act and without prejudice to the generality of the foregoing, may by regulations -

(a) provide for the role of mutual fund administrators in relation to mutual funds,

(b) provide for the operation of mutual funds,

(c) amend the Schedule,

(d) provide for any other matter or things which may be or is required to be prescribed under this Act.

(2) Regulations made under this section may provide, as penalty for the contravention of a regulation, a fine of up to R50,000 and imprisonment for up to 5 years.