Other Sections

Administrative Penalties

The Registrar may impose administrative penalties if satisfied on reasonable grounds that a person has contravened a financial services law. Administrative penalties may take any of the following forms: -

  • a written warning;
  • a direction; or
  • a monetary penalty

A direction requires a person to do a specified act, or to refrain from doing a specified act in order to remedy the effects of the contravention, compensate persons who have suffered loss because of the contravention and ensure that the person does not commit further contravention of financial services laws. A direction may also require the establishment of compliance programmes, corrective advertising or changes in the management of a financial institution. Failure to comply with an administrative penalty imposed by the Registrar constitutes a criminal offence and on conviction a person is liable to a fine or imprisonment.