113.Among the requirements which the Authority can impose on an authorised person when acting under this Part are:
	restrictions on the use or disposal of the authorised person’s assets; or
	requirements to transfer its assets or assets it holds on behalf of investors to a trustee approved by the Authority.
114.The purpose of these types of restriction is to prevent an authorised person disposing of particular assets or making certain types of investment, in circumstances where the Authority is concerned about a person’s solvency or where it wishes to investigate suspected fraudulent behaviour.
115.Where an authorised person’s assets are held by a third party, for example by a bank, subsection (4) enables the Authority to give the institution notice of any restrictions it has placed on the authorised person’s assets.  This notice might state, for example, that a bank should not allow any payments to be made from the authorised person’s account without the permission of the Authority.  Subsection (5)(a) provides that if the institution refuses to comply with a request to make a payment from the account of an authorised person who is subject to a restriction notice, it is not to be taken as a breach of its contract with the authorised person.  However, if the institution were to allow a payment to be made from such an account, in breach of a restriction, under subsection (5)(b) it would be liable to pay the same amount of money to the Authority.
116.Subsections (6) to (11) are concerned with the transfer of an authorised person’s assets to a trustee approved by the Authority.
117.Subsection (6) requires a trustee not to deal with or release any of the assets transferred to them unless the Authority agrees.  If the trustee does release assets without the Authority’s consent, he is guilty of an offence under subsection (9).  However subsection (11) protects the position of the persons who are beneficiaries of the trust by preserving all the remedies they would normally have under trust law.  The beneficiaries of the trust are the owners of the assets transferred to the trustee.  This will be either the authorised person or, where the assets transferred include assets the authorised person was holding or controlling on behalf of other investors, those investors.
118.Subsection (7) makes void any charge that the authorised person makes over his assets while they are held by a trustee.  Any charges arranged before the assets were transferred to a trustee remain valid.  The effect of this is that were the authorised person to enter into a contractual arrangement which gave a third person a right ahead of existing creditors or a liquidator to any of his assets which, as a result of a requirement made by the Authority under subsection (3)(b), were held by a trustee, that contract would be void and the rights of the liquidator and existing creditors to the assets would be upheld.
Commentary on Sections Part Iv: Permission to Carry on Regulated Activities Section 48: Prohibitions and restrictions