APPLICATION AND GRANT OF LICENCE OF CUSTODIAN
An application for a licence as a custodian of a retirement benefits scheme shall not be granted
- unless the applicant is a financial institution licensed under the Financial Institutions Act, 2004;
- if the applicant does not have the adequate professional, technical and operational systems to perform the functions of a custodian of a retirement benefits scheme;
- if the applicant has been a custodian of a retirement benefits scheme whose licence was revoked by the Authority due to any fault either fully or partially of the custodian; and
- if the applicant does not meet any additional requirements as may be prescribed by this Act or regulations made under this Act.
Refusal of licence of custodian
(1) An application for a licence to act as a custodian shall be in the prescribed form and shall;
- contain or be accompanied by any other information that the Authority may require for the purpose of determining the application;
- contain the address of a place in Uganda for the service on the applicant of any notice or document required or authorised to be served on the applicant under this Act; and
- be accompanied by the prescribed fee.
(2) The Authority shall grant a licence to an applicant which meets the requirements specified in section 34 and subsection 35(1).
(3) The Authority shall publish in the Gazette and a newspaper with wide circulation, a list of all licensed custodians at least once every year.
(4) A financial institution which acts as a custodian of a retirement benefits scheme without a licence issued under this Act commits an offence and is liable on conviction to a fine not exceeding one thousand currency points.
Restrictions on licence of Custodian
(1) The Authority may refuse to grant a licence to an applicant, if the Authority is satisfied that;
- the information contained in the application is false in any material particular; or
- the applicant does not meet the requirements specified in section 34 and subsection 35 (1).
(2) Where the Authority refuses to grant a licence to an applicant, the Authority shall notify the applicant of its decision and specify the reasons for the refusal in writing.
Validity of licence of custodian
(1) A licence issued to a custodian shall be valid for one year and may be renewed upon payment of the prescribed fee.
(2) An application for the renewal of a licence under subsection (1) shall be made at least three months before the expiry of the licence.
Revocation of licence of custodian
(1) The Authority may revoke the licence of a custodian if;
- the Authority discovers after the licence has been issued, that the custodian made a false statement in relation to the application;
- any event occurs which renders the custodian ineligible to provide custodial services to the retirement benefits scheme;
- the custodian's business is wound up;
- the custodian is in breach of any condition of the licence;
- the custodian ceases to be a licensed financial institution under the Financial Institutions Act,2004; or
- the custodian does not comply with any provision of this Act or regulations made under this Act.
(2) The Authority shall give the custodian at least thirty days notice in writing specifying the reasons for the intended revocation of the licence.
(3) The Authority shall, before revoking a licence of a custodian, consider any representations made in writing by the custodian opposing the revocation.
(4) The Authority shall revoke the licence of a custodian if;
- i. within thirty days after issuing the notice, the custodian has not opposed the revocation, or
- ii. the Authority is not satisfied by the representation made by the custodian under subsection (3).