Disciplinary Actions
The Commission has powers to use certain disciplinary tools where it is entitled to take enforcement action against a licensee:
Directives
The Commission may issue a directive for the following reasons:
imposing a prohibition, restriction or limitation undertaken by the licensees including that the licensee shall cease to engage in any type of business and the licensee shall not enter into any new contracts for any type of business.
requiring that any director, key employee or person having functions in relation to a licensee be removed and replaced by another person acceptable to the Commission;
requiring the licensee to take such other action as the Commission considers may be necessary to protect the property of, or in the custody, possession or control of, the licensee or to protect customers or creditors or potential customers or creditors of the licensee.
Direction
The Commission may issue a direction to a licensee as it considers appropriate, where the Commission has reasonable cause to believe that —
a licensee has contravened or is likely to contravene the ELSCC Act, and other financial services legislation, any code, guideline or any other laws of Salvador;
a licensee is conducting its affairs in an improper or financially unsound manner;
a direction is necessary or desirable to protect the interests of clients of a licensee,
Non-compliance with a direction is an offence under the ELSCC Act.
Administrative penalties
The Commission reserves the right to impose such administrative penalties on a licensee as may be provided for under the ELSCC Act or under any other financial services legislation.
Removal or suspension of fit and proper of an individual
Any director, key employee or person having functions in relation to a licensee be removed and replaced by another person acceptable to the Commission.
Protection order
The Commission may apply to the Court for a protection order under this section with respect to:
a licensee whose licence is about to be revoked or where the Commission is entitled to take enforcement action against him under section 27;
a former licensee;
a person carrying on unauthorised financial services business.
The Court may make such order as it considers necessary to protect or preserve the business or property of the person with respect to whom the application is made, or the interest of his clients, investors, creditors or the public, including an order —
preventing the person concerned or any other person from transferring, disposing of or otherwise dealing with property belonging to him or in his custody or control;
appointing an administrator to take over and manage the financial services business then carried on by the person concerned or carried on by him immediately before the revocation or suspension of the licence, as the case maybe;
in the case of a company, that the Company considered to be wound up by the Court or be subject to the supervision of the Court under laws relating to winding up;
granting the Commission, a search warrant;
where the person concerned is in contravention of this Act or any financial services legislation, requiring the person concerned to take such action, or to refrain from taking such action, as is necessary to bring him back into compliance with this Actor the financial services legislation.