Section 174: Cancellation or suspension of registration of a manager.

(1) The Commission may cancel the registration of a manager under this Act if:
(a) the manager has contravened or failed to comply with any provision of this Act or any direction or requirement given or imposed under this Act, and that such contravention or failure has resulted or may result in serious prejudice to the interests of the public or of investors;
(b) upon completion of an investigation or inspection, the manner in which a manager carries on the business of a collective investment scheme is unsatisfactory or undesirable or not calculated to serve the best interests of its investors;
(c) the registration of the manager was obtained through misrepresentation; or
(d) the manager is wound up, either voluntarily or by the court.
(2) Whenever there is cause to cancel the registration of a manager on any of the grounds referred to in paragraph (a), (b) or (c) of subsection (1), the Commission may, in lieu of such cancellation, suspend the registration of the affected manager for a period not exceeding 12 months at a time subject to such conditions as the Commission may determine.
(3) The Commission may not cancel or suspend the registration of a manager on any ground contemplated in subsection (1) (a), (b) or (c) unless it has:
(a) notified the manager of its intention and of the grounds upon which it proposes to do so;
(b) allowed the manager to make representations to it in connection with the proposed cancellation or suspension; and
(c) afforded the manager a reasonable opportunity to rectify or eliminate the defect, irregularity or undesirable practice.
(4) An application for re-registration as a manager by a company whose registration has been cancelled under this section shall be dealt with as if it were its first application for registration.
(5) If the registration of a manager is cancelled in pursuance of subsection (1) (a), (b) or (c) the provisions of this Act with regard to the continuance or the winding-up of the portfolio of a collective investment scheme or the winding-up of the manager shall apply:
Provided that the Commission may in any such case direct the former manager to defray, in whole or in part, the expenses incurred in continuing the administration of the collective investment scheme, or in realising any of its assets, and also any remuneration to which a trustee or custodian may be entitled.
(6) If the registration of a manager has been suspended under subsection (2) of this section, the manager shall not, during the period of suspension, issue any fresh participatory interests, but shall, in respect of participatory interests issued, transfer the administration of the scheme to another manager approved by the Commission on the recommendation of the trustee or custodian.