The imposition of an administrative penalty is provided for under section 7(1)(c)(v) of the Financial Services Act ('FSA') and section 93(2)(aa) of the FSA further provides that notwithstanding section 53, FSC Rules may provide for the imposition of an administrative penalty in relation to such matters as may be prescribed.
The administrative penalties levied under the FSC Rules will apply automatically in cases of non-compliance with specific sections of the relevant Acts. The rationale for imposing 'automatic' administrative penalties is to encourage licensees to comply with their obligations on time and diligently.
Any administrative penalty levied under these FSC Rules shall be a debt due to the FSC and may be recovered by the FSC as a civil debt in a court of competent jurisdiction.
The imposition of an administrative penalty shall be without prejudice to any other power, penalty, sanction or remedy provided under the relevant Acts. However, no administrative penalty shall be levied in respect of an instance of non-compliance which occurred before the commencement of the FSC Rules.
The FSC Rules will come into operation on 1st January 2014.