62Suspension or cancellation of approval

62 Suspension or cancellation of approval (1) For section 54DE(1)(c) or (d) of the Act, the Minister may suspend or cancel the approval of an approved scheme on any of the following grounds: (a) the trustees of the scheme have contravened: (i) the Act, a regulation or another law in force in the Territory in relation to the scheme; or (ii) the prudential standards; (b) the scheme is insolvent and is unlikely to return to solvency within a reasonable time;

Chapter 3 Fidelity fund schemes and approved schemes Part 3.3 Approved schemes – general matters Division 4 Suspensions, cancellations and changes Building (RBI and Fidelity Fund Schemes) Regulations 2012 35 (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 may be, a risk to the security of the scheme's assets; (f) there is, or may be, a sudden deterioration in the scheme's financial condition; (g) the scheme has ceased to issue certificates in the Territory. (2) If the Minister proposes to suspend or cancel the approval of an approved scheme, the Minister must give the trustees of the scheme a written notice stating: (a) the grounds on which the Minister proposes to suspend or cancel the approval; and (b) the facts that, in the Minister's opinion, establish the grounds; and (c) that the trustees may, within a reasonable specified time, give a written response to the Minister about the matters in the notice. (3) If, after considering a response given under subregulation (2)(c), the Minister is satisfied 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 the approval, the Minister must give written notice of the suspension or cancellation to the trustees. (5) Suspension or cancellation of an approval takes effect: (a) on the day when notice of the suspension or cancellation is given to the trustees; or (b) a later day as specified in the notice.