280Financial assurance condition—show cause

280 Financial assurance condition—show cause (1) If the conservator proposes to impose a financial assurance condition on a licence, the conservator must give the applicant or licensee written notice of the intention to impose the condition. (2) The notice must state— (a) the grounds for the proposed financial assurance condition; and (b) the amount and form of the proposed financial assurance; and (c) that the applicant or licensee may give a written submission to the conservator showing cause why the proposed financial assurance condition should not be imposed; and (d) that submissions may be given to the conservator only during the 20 working days after the day the notice is given to the licensee (the show cause period).

(3) The conservator must, within 20 working days after the end of the show cause period— (a) consider any submissions received under subsection (2) (d); and (b) decide whether to impose the financial assurance condition; and (c) tell the applicant, or licensee, in writing (a decision notice)— (i) about the decision; and (ii) if the condition is to be imposed—when the financial assurance must be provided (the due date). (4) The conservator must not decide a due date that is earlier than 10 working days after the day the decision notice is given to the licensee.