Under the Central Bank's rules for agency cancellations, which statement is required?

Under the Central Bank's rules for agency cancellations, which statement is required?

• A. Inform Central Bank immediately.
• B. Place a notice in a national newspaper within seven working days.
• C. Notify customers within 28 working days.
• D. Inform Central Bank and notify customers.

Answer: (A)

When an agency is cancelled, the regulator must be kept up-to-date immediately. The Central Bank is the supervisor that maintains the official records of who is authorized to act for each issuer or product, so prompt notification ensures the supervisory register reflects the change and can be managed safely. This helps prevent any activity continuing under an authority that no longer exists and supports proper wind-down and client-protection steps under supervision. Publishing a newspaper notice or informing customers isn’t the mandated step in this rule, and delaying notification would undermine regulatory oversight. Hence, informing the Central Bank immediately is the required action.

When an agency is cancelled, the regulator must be kept up-to-date immediately. The Central Bank is the supervisor that maintains the official records of who is authorized to act for each issuer or product, so prompt notification ensures the supervisory register reflects the change and can be managed safely. This helps prevent any activity continuing under an authority that no longer exists and supports proper wind-down and client-protection steps under supervision. Publishing a newspaper notice or informing customers isn’t the mandated step in this rule, and delaying notification would undermine regulatory oversight. Hence, informing the Central Bank immediately is the required action.