Section 29
Section 29
(1)
Where the manager, administrator, trustee or custodian of a registered fund has reason to believe
{a)
that the fund is likely to become unable to meet its obligations as they fall due; or
{b) that the fund is insolvent, he shall notify the Authority in writing of his belief.
(2)
Where fa)
the Authority receives a notification under subsection (1);
{b)
a registered fund becomes unable to meet its obligations as they fall due; or
{c)
the Authority is of opinion that-
(i)
a registered fund is carrying on, is attempting to carry on or is voluntarily winding-up, its business in a manner prejudicial to the interests of its participants or its creditors;
(ii)
that a registered fund is, or is likely to become, unable to meet its obligations as they fall due; or
(iii)
as regards a mutual fund licence or a mutual fund permission, there has been a failure to comply with, or a contravention of, a condition attached to the licence or permission, then, subject to section 31, the Authority shall give a direction under this section as regards that registered fund.
(3)
A direction under this section shall remain in force until it is withdrawn by the Authority.
!4)
Where a direction under this section is in force, an application may be made to the Authority to withdraw but the Authority shall not withdraw the direction unless the Authority is satisfied that as regards the registered fund to which it applies
{a} the circumstances which caused the direction to be given no longer exist; and
{b} no other circumstances exist which would require the Authority to give such a direction as regards the fund.
(5)
Where the Authority gives a direction under this section, the Authority shall give the manager, administrator, trustee or custodian of the fund notice in writing of the direction and the notice may require the person to whom it is addressed to circulate or otherwise distribute to the participants in that fund a written statement stating that the direction has been given and that representations may be made on behalf of such participants as regards the exercise by the Authority of any of the powers conferred on the Authority by Part 2 of the
Second Schedule in relation·'to that fund and containing such other particulars (if any) as the Authority specifies.
(6)
If any person fails to comply with any requirement of a notice given to him under subsection (5), then, subject to the First Schedule, the Authority may revoke the current licence or permission issued to or given as regards that person under this Order.
(7)
Where a direction given under this section is in force, the provisions of
Part 2 of the Second Schedule shall apply as regards that direction.