In the dynamic landscape of financial regulations, the Nairobi International Financial Centre (NIFC) Regulations, 2021, addresses the importance of safeguarding the rights of third parties affected by regulatory decisions.
Regulation 38 intricately outlines the procedures and considerations involved when third-party rights are implicated in decision notices.
Identification and Notification
Regulation 38(1) sets the foundation by requiring the Authority to identify third parties affected by decision notices. Once identified, the Authority is obligated to provide a copy of the notice to the third party if their identification could be prejudicial.
Representation Opportunity
Recognizing the significance of third-party perspectives, Regulation 38(2) ensures that affected third parties have a reasonable period to make representations to the Authority. This provision aligns with principles of natural justice and allows for a comprehensive understanding of the implications of regulatory decisions.
Practicality Considerations
In situations where providing notice to third parties is deemed impractical (Regulation 38(3)), the Authority must demonstrate diligent efforts in attempting to notify the affected parties. This balance ensures that regulatory proceedings are efficient without compromising fairness.
Access to the Tribunal
Regulation 38(4) empowers third parties to refer the decision to the Tribunal, providing an avenue for independent review. This mechanism enhances accountability and transparency in the regulatory process, offering affected parties an opportunity to challenge decisions that may impact them.
Notice Accompaniment
Regulation 38(5) mandates that a copy of the decision notice be accompanied by an indication of the third party’s right to refer the matter to the Tribunal. This proactive disclosure ensures clarity and awareness of available recourse.
Discontinuation Communication:
In situations where the Authority discontinues an action related to a decision notice for a third party (Regulation 38(7)), the affected party is entitled to receive a copy of the notice of discontinuance. This provision ensures transparency even in the event of regulatory decisions being halted.
Regulation 38 of the NIFC Regulations stands as a testament to the commitment to fairness, transparency, and due process in financial regulatory proceedings, fostering a regulatory environment that upholds the rights and interests of all relevant stakeholders.
