Investment Intermediaries Act, 1995

Appointment of inspector by a supervisory authority.

73.—(1) Without prejudice to its powers under this Act, a supervisory authority may, subject to subsection (2) of this section, appoint one or more inspectors to investigate and report on any or all of the following, namely—

(a) the affairs and conduct of the business of an authorised investment business firm or other undertaking which is, or was at the relevant time, an associated or related undertaking of an authorised investment business firm, or any particular aspect of such business,

(b) compliance of the authorised investment business firm with all or any of the following:

(i) conditions or requirements or both imposed by the supervisory authority under this Act,

(ii) rules or codes of conduct set out or approved by the supervisory authority under this Act,

(iii) any condition or requirement of this Act,

(iv) rules or requirements set out or approved by the supervisory authority, with respect to clients' money and investment instruments,

(v) any other enactment,


(c) any other matter as the supervisory authority may consider appropriate.

(2) An appointment under subsection (1) of this section may be made by the supervisory authority if it is of the opinion that there are circumstances suggesting that it is necessary—

(a) for the effective administration of the law relating to investment business firms, or

(b) for the effective discharge by the supervisory authority of its statutory functions under this Act.

(3) The terms of appointment of an inspector under this section may define the scope of his investigation, whether as respects the matters or the period to which it is to extend or otherwise, and in particular may limit the investigation to matters connected with particular circumstances.

(4) Subject to the terms of appointment of an inspector, the powers conferred on him by this section shall extend to the investigation of any circumstances suggesting the existence of an arrangement or understanding which, though not legally binding, is or was observed or likely to be observed in practice and which is relevant to the purposes of his investigation.

(5) For the purposes of any investigation under this section, sections 67 to 71 , except sections 68 , 69 (3) and 70 (3), shall apply with the necessary modifications or references to the affairs of the authorised investment business firm or to those of any other person or any associated or related undertaking, so, however, that—

(a) the said sections shall apply in relation to all persons who are or have been officers or employees or agents of the authorised investment business firm or other person who appears to the inspector to have the information, document, material or explanation in his possession or under his control, and

(b) for references to the Court except in sections 67 , 69 (4), 70 (1) and 70 (2) of this Act, there shall be substituted references to the supervisory authority.