The FSC/FSS is vested with the authority to revoke the business license of a financial services company. A financial services company pursuing major reorganization or alteration of its existing business structure must obtain prior authorization/approval from the FSC/FSS. Such business reorganization or alteration includes a breakup of the company, a merger with another financial services company, a whole or partial acquisition (or assignment) of a financial services business, the termination of a financial services business, and the dissolution of the company.
Where it is determined that a financial services company is unable to continue safe and sound business operation as a going concern, the FSC/FSS may issue a prompt corrective action (PCA) and order the dissolution of the company through the sale of the company's businesses or a merger.
The FSC/FSS may also revoke a business license where it is determined that a financial services company:
- Obtained a business license through misrepresentation, deception, or fraud;
- Failed to comply with legal and regulatory requirements;
- Carried on financial services business while under FSC/FSS-imposed business suspension;
- Failed to comply with supervisory orders for corrective or remedial actions;
- Acquired or disposed of assets (such as debt and equity securities) through illegal means;
- Defaulted on a payment obligation and significantly disrupted the normal and orderly functioning of the financial system; or
- Will like cause financial losses to depositors or investors due to grave legal or regulatory failure.
The FSC/FSS may also revoke the registration of a financial services firm for any of the aforementioned causes.