FINANCIAL SERVICES

CHAPTER 44:05
FINANCIAL SERVICES

ARRANGEMENT OF SECTIONS

    SECTION

PART I
PRELIMINARY

    1.    Short title and application

    2.    Interpretation

    3.    Principal object of this Act

    4.    Subsidiaries, holding companies and related bodies corporate

    5.    Controlling parties of financial institutions

    6.    References to obligations where financial institution not a legal person

    7.    Financial services laws bind Government

PART II
THE RESERVE BANK AND THE REGISTRAR

Division 1
Registrar to Regulate and Supervise Financial Institutions

    8.    Registrar of Financial Institutions

    9.    Additional function of Reserve Bank of Malawi

    10.    Registrar’s objectives

    11.    Registrar to report financially unsound financial institutions

Division 2
Financial and Accountability Provisions

    12.    Funding for supervisory functions

    13.    Supervisory levies to be prescribed

    14.    Fees and charges to be prescribed

    15.    Supervisory levies debt due to Registrar

    16.    Levies Account

    17.    Investment of Levies Account surplus

    18.    Registrar’s annual report

Division 3
Other Provisions

    19.    Arrangements with other agencies

    20.    Delegation

PART III
LICENSING AND REGISTRATION OF FINANCIAL INSTITUTIONS

Division 1
Licensing and Registration Requirements

    21.    Financial institutions to be licensed or registered

Division 2
Licensing and Registration Procedures

    22.    Application of the Division

    23.    Licensing and registration applications and procedure

    24.    Notification of a breach of licence or registration conditions

    25.    Issue and publication of licence

    26.    Variation, suspension and revocation of licences and registrations on request

    27.    Variation, suspension and revocation of licences and registrations

    28.    Exemptions from licensing and registration requirements

PART IV
CORPORATE GOVERNANCE

    29.    Board of directors

    30.    Appointment of executive officers and managers

    31.    Removal of executive officers or managers

    32.    Prohibition of self-dealing

    33.    Related Parties

PART V
SUPERVISION AND REGULATION OF FINANCIAL INSTITUTIONS

Division 1
Registrar’s Directives

    34.    Registrar’s directives

Division 2
Information, Reports, etc.

    35.    Directions to licensed or registered institutions to provide information

    36.    Requirements to provide information

    37.    Audited statements

    38.    Exchange of information

Division 3
Directions

    39.    Directions to licensed or registered financial institutions

    40.    Directions not ground for terminating contracts or accelerating debt, etc.

Division 4
Examinations and Investigations

    41.    Examiners

    42.    Investigators

    43.    Powers and protections of investigators

    44.    Identity cards

Division 5
Self-Regulatory Organizations

    45.    Declaration of Self-Regulatory Organizations

    46.    Rules by Self-Regulatory Organizations

    47.    Person affected to be heard

    48.    Self-Regulatory Organization to inform the Registrar of an appointment of director or executive

    49.    Declaration of Self-Regulatory Organizations revocable by Registrar

    50.    Amendment to Self-Regulatory Organization articles

    51.    Protection for Self-Regulatory Organizations

    52.    Annual reports by Self-Regulatory Organizations

Division 6
Controlling Parties of Prudentially Regulated Financial Institutions

    53.    Limitation on shareholding

    54.    Controlling parties to require Registrar’s approval

PART VI
AUDITORS

    55.    Internal auditor

    56.    Appointment of an external auditor

    57.    Auditor to report to Registrar

    58.    Meetings with Registrar

    59.    Duties of external auditors to the Registrar

    60.    Change of external auditors to be approved by Registrar

PART VII
REGULATING MARKET PRACTICES OF FINANCIAL INSTITUTIONS

    61.    Application of Part VII

    62.    Misleading and deceptive conduct

    63.    Prohibited practices

    64.    Disclosure by financial institutions

PART VIII
AMALGAMATIONS, TRANSFERS OF BUSINESS, STATUTORY MANAGEMENT AND WINDING-UP OF PRUDENTIALLY REGULATED FINANCIAL INSTITUTIONS

Division 1
Compromises and Arrangements and Transfers of Business

    65.    Application of Part VIII

    66.    Compromises and arrangements

    67.    Transfer of business

Division 2
Statutory Management

    68.    Appointment of statutory managers

    69.    Statutory managers

    70.    Legal proceedings against a prudentially regulated financial institution under statutory management

    71.    Period of statutory management

Division 3
Winding-Up

    72.    Winding-up of prudentially regulated financial institutions

PART IX
ENFORCEMENT OF FINANCIAL SERVICES LAWS

    73.    Enforceable undertakings

    74.    Compensation for loss from breach of financial services laws

    75.    Administrative penalties

    76.    Court Orders

    77.    Exemptions

PART X
REVIEW OF DECISIONS

Division 1
Financial Services Appeals Committee

    78.    Financial Services Appeals Committee

    79.    Membership

    80.    Vacation of office

    81.    Disclosure of interest

    82.    Appeals to the Appeals Committee

    83.    Restriction on altering decisions under review

Division 2
Conduct of Review Proceedings

    84.    Notice of, and parties, to review proceedings

    85.    Procedure

    86.    Hearings

    87.    Rights of parties to review proceedings

    88.    Powers of Appeals Committee

    89.    Rights of legal practitioners, witnesses, etc.

    90.    Summons

    91.    Decisions of Appeals Committee

    92.    Appeal from decisions of Appeals Committee

Division 3
Complaints Resolution Schemes

    93.    Registrar to promote complaint resolution scheme

    94.    Requirements for complaint resolution schemes

PART XI
MISCELLANEOUS

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