105. Provisions governing Controllers

(1) The Regulator may make Rules in connection with the change of control of Authorised Persons or Recognised Bodies. Such Rules may make provision as to —
(a) when a person becomes or ceases to be a Controller of an Authorised Person or Recognised Body;
(b) which shareholdings are to be disregarded when assessesing whether a person becomes or ceases to be a Controller of an Authorised Person or Recognised Body;
(c) when the acquisition of, or increase or decrease in the level of, Control of an Authorised Person or Recognised Body requires either the prior approval of, or notification to, the Regulator;
(d) when the Regulator may object to an existing Controller;
(e) the procedures relating to the approval, notification and objections referred to in paragraphs (c) and (d); and
(f) any other matter necessary or incidental to give effect to the provisions governing Controllers.
(2) Without limiting the generality of the Regulator's powers, the Regulator may —
(a) approve or object to a person becoming a Controller of an Authorised Person or Recognised Body;
(b) approve or object to an increase in the level of control of an existing Controller of an Authorised Person or Recognised Body;
(c) object to an existing Controller of an Authorised Person or Recognised Body where it has reasonable grounds to believe that such a person is no longer an acceptable Controller; and
(d) approve a person as a Controller or approve an increase of Control by an existing Controller subject to such conditions as it considers appropriate.
(3) Where the Regulator considers an existing Controller of an Authorised Person or Recognised Body to be an unacceptable Controller —
(a) it must notify the Controller and the Authorised Person or Recognised Body in writing that the Controller is no longer an acceptable Controller; and
(b) it may require that the Controller and the Authorised Person or Recognised Body take such action as is specified by the Regulator.
(4) Without limiting the generality of the Regulator's powers, the Regulator may, for the purposes of subsection (3)(b) —
(a) require an Authorised Person or Recognised Body to take such action as is specified by the Regulator in relation to an unacceptable Controller;
(b) where an Authorised Person or Recognised Body has failed to comply with a requirement referred to in paragraph (a) to the satisfaction of the Regulator, exercise any of its powers in relation to the Authorised Person or Recognised Body; or
(c) require the unacceptable Controller to take such action as specified by the Regulator.