26Mandatory grounds for refusal

26 Mandatory grounds for refusal

26 Mandatory grounds for refusal

(1) The Commissioner must refuse to grant an application for a master licence if the applicant, or a close associate of the applicant—

(a) has, within the period of 3 years before the application for the licence was made, become personally insolvent, unless the Commissioner is satisfied the applicant or close associate took all reasonable steps to avoid the insolvency, or

(b) was, within the period of 3 years before the application for the licence was made, concerned in the management of a corporation when the corporation was the subject of a winding up order or when a controller or administrator was appointed, unless—

(i) the winding up of the corporation was a voluntary winding up, or

(ii) the Commissioner is satisfied the applicant or close associate took all reasonable steps to avoid the liquidation or administration.

(2) In determining the reasonable steps that a person could take to avoid the insolvency, the Commissioner must have regard to the steps the person could have taken when the financial difficulties that led to the insolvency arose.