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Section 51

Restriction on payment of dividend by licensed person

of Financial Services Act 2013

ActIn forceProvision 51 of 124
Section 51

(1)

No licensed person shall declare or pay any dividend on its shares except with the prior written approval of the Bank or where the

Bank has specified standards permitting the declaration of payments of any dividend under subsection 47(1).

(2)

Where there is an application made by a licensed person for approval under subsection (1) in respect of the proposed amount of dividend to be declared, the Bank shall, in considering whether or not to grant an approval on the proposed amount or approve a reduced amount of dividend payment, have regard to the prevailing and prospective financial condition of the licensed person including its ability to comply with any standards as may be specified by the Bank under paragraph 47(2)(a).

Financial Services 85