Finance Business Act 2011 · As enacted · Part VII · Action Against Persons Carrying on Finance Business or Accepting Deposits Without Authority
48. Prohibition of advertising soliciting deposits without authority
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
No person, other than a person licensed under this Act to carry on finance business or any bank or institution exempted in terms of section 3 of this Act, shall advertise by any means, in any manner whatsoever, either directly or indirectly, soliciting deposits.
Where the Director is of the opinion that an advertisement made by a person contravenes the provisions of subsection (1), the Director may send a notice to such person requiring him to refrain from publishing advertisements soliciting deposits.
The notice referred to in subsection (2) shall be deemed to have been served on the person referred to in the notice if such notice was sent by registered post-
to the address given in the advertisement;
if such person is an individual to such person’s place of business or residential address;
if such person is a body corporate, to such person’s place of business or registered address; or
if such person is an unincorporate body, to such person’s place of business or to the addresses of partners or members of such body.
If any person fails to comply with the notice sent by the Director in terms of subsection (2), the Director may make an application in writing to the Magistrate’s Court within whose jurisdiction such person’s place of business is situated or to, within whose jurisdiction the registered address, residential address or the address given in the advertisement is situated.
The application made by the Director in terms of subsection (4) shall contain the following matters: -
that he is the Director for the purposes of this Act;
that the advertisement referred to in the notice issued in terms of subsection (2), is in his opinion intended directly or indirectly for the purpose of soliciting deposits;
that in terms of subsection (2) a notice was issued to the person named in the application, who in his opinion, is the advertiser of the advertisement referred to in subparagraph (ii);
that the advertiser is not a person authorized by subsection (1) to publish an advertisement soliciting deposits; and
that the advertiser failed to comply with the requirements contained in the notice issued in terms of subsection (2);
The application shall contain a prayer for the making of an order directing the advertiser who is named in the application to forthwith refrain from advertising, in any manner, either directly or indirectly soliciting deposits.
Every application made under subsection (4) shall be supported by an Affidavit confirming the matters set forth in such application and shall be accompanied by a copy of the advertisement referred to in the notice issued in terms of subsection (2) and a copy of such notice.
Upon receipt of an application made under subsection (4), the court shall, forthwith issue on the advertiser named in the application-
a conditional order restraining him from publishing the advertisement in respect of which the application is made, and also restraining him from publishing by any means whatsoever any further advertisements soliciting deposits, until the conclusion of the Court proceedings or until such time the Court may consider fit; and
summons requiring him to appear and show cause on the date specified in such summons (being a date not later than two weeks from the date of issue of such summons) as to why an order restraining him from advertising, in any manner, either directly or indirectly soliciting deposits, should not be issued.
If the person on whom the summons were issued under subsection (7) fails to appear in court on the date specified therein or informs the court that he has no cause to show, the court shall make the conditional order issued under subsection (7) hereof a final order restraining the advertiser from publishing advertisement in respect of which the application is made, and also restraining him from publishing by any means whatsoever any further advertisements soliciting deposits.
If a person on whom summons have been served under subsection (7) appears on the date specified therein and informs court that he has cause to show as to why an order should not be issued prohibiting him from advertising, in any manner, soliciting deposits, the court may proceed to hear and determine the matter.
At such inquiry under subsection (9) the advertiser on whom summons under subsection (7) have been served shall not be entitled to contest any of the matters stated in the application under subsection (4) except that he has not made the advertisement referred to in the application or he had made such advertisement in accordance with any written law under which he is permitted to do so and such permission is in force and not revoked or otherwise rendered invalid.
It shall not be competent to the Magistrate’s Court to call for any evidence from the Director in support of the application under subsection (4).
If after inquiry the Magistrate is unable to conclude on the evidence adduced before him that the person showing cause is entitled to advertise soliciting deposits, the
Magistrate shall make the conditional order issued under subsection (7) hereof, a final order restraining the advertiser from publishing advertisement in respect of which the application is made, and also restraining him from publishing by any means whatsoever any further advertisements soliciting deposits. If such person shows cause to the satisfaction of the court, the Magistrate shall set aside the conditional order issued under sub section (7).
Where a Court has made, in pursuance of any application under subsection (4), an Order directing a person to stop forthwith advertising in any manner, soliciting deposits, the Court shall along with such Order make all such orders as are necessary to ensure that the Order of restraint is effectively enforced.
Part VIII
Offences and Penalties
Part IX