107Suspension or cancellation of approval of approved

107 Suspension or cancellation of approval of approved scheme (1) The Minister may take action under this section in relation to an approved scheme on any of following grounds: (a) the trustees of the scheme have contravened this Act or another territory law in relation to the scheme; Note A reference to an Act includes a reference to the statutory instruments made or in force under the Act, including regulations and disallowable instruments (see Legislation (b) the scheme is insolvent and is unlikely to return to solvency within a reasonable time; (c) the scheme has inadequate capital and is unlikely to have adequate capital within a reasonable time; (d) the scheme is, or is likely to become, unable to meet its liabilities; (e) there is, or there may be, a risk to the security of the scheme’s assets; (f) there is, or there may be, a sudden deterioration in the scheme’s financial condition; (g) the scheme has ceased to issue fidelity certificates in the ACT; (h) a ground prescribed under the prudential standards exists for the suspension or cancellation of the approval of the scheme; (i) a ground prescribed by regulation for the suspension or cancellation of the approval of the scheme.

(2) If the Minister proposes to suspend or cancel the approval of the scheme, the Minister must give the trustees of the scheme a written notice— (a) stating the grounds on which the Minister proposes to suspend or cancel the approval; and (b) stating the facts that, in the Minister’s opinion, establish the grounds; and (c) telling the trustees that the trustees may, within a stated reasonable time, give a written response to the Minister about the matters in the notice. (3) If, after considering any response given under subsection (2) (c), the Minister is satisfied that the grounds for suspending or cancelling the approval have been established, the Minister may suspend or cancel the approval. (4) If the Minister suspends or cancels an approval, the Minister must give written notice of the suspension or cancellation to the trustees. (5) Suspension or cancellation of an approval takes effect on the day when notice of the suspension or cancellation is given to the trustees or, if the notice states a later date of effect, that date. (6) A suspension or cancellation under this section is a notifiable instrument.