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  • EN-3 EN-3 Directions

    • EN-3.1 EN-3.1 CBB Policy

      • EN-3.1.1

        The CBB may issue Directions to licensees or individuals under supervisory powers granted to it by the CBB Law. These powers are broad in nature, and effectively allow the CBB to issue whatever Directions it reasonably believes are required to achieve its statutory objectives.

        Amended: October 2010
        Added: October 2007

      • EN-3.1.2

        The types of Directions that the CBB may issue in practice vary and will depend on the individual circumstances of a case. Generally, however, Directions require a licensee or individual to undertake specific actions in order to address or mitigate certain perceived risks. They may also include restrictions on a licensee's activities until those risks have been addressed – for instance, a ban on the acceptance of new customers.

        Amended: October 2010
        Added: October 2007

      • EN-3.1.3

        The CBB is conscious of the powerful nature of a Direction and, in the case of a licensee, the fact that it subordinates the role of its Board and management on a specific issue. The CBB will carefully consider the need for a Direction, and whether alternative measures may not achieve the same end. Where feasible, the CBB will try to achieve the desired outcome through persuasion, rather than recourse to a Direction.

        Amended: October 2010
        Added: October 2007

      • EN-3.1.4

        In considering whether to issue a Direction, the criteria taken into consideration by the CBB include the following:

        (a) the seriousness of the actual or potential contravention, in relation to the requirement(s) concerned and the risks posed to the licensee's customers, market participants and other stakeholders;
        (b) in the case of an actual contravention, its duration and/or frequency of the contravention; the extent to which it reflects more widespread weaknesses in controls and/or management; and the extent to which it was attributable to deliberate or reckless behaviour; and
        (c) the extent to which the CBB's supervisory objectives would be better served by issuance of a Direction as opposed to another type of regulatory action.
        Amended: October 2010
        Added: October 2007

    • EN-3.2 EN-3.2 Procedure for Issuing Directions

      • EN-3.2.1

        Proposals to issue Directions are carefully considered against the criteria listed in Section EN-3.1. They require approval of an Executive Director or more senior official of the CBB, and include the statement "This is a formal Direction as defined in Chapter EN-3 of the CBB Rulebook".

        Amended: October 2010
        Added: October 2007

      • EN-3.2.2

        The subject of the Direction will normally be given 30 days from the Direction's date of issuance in which to make objections to the CBB concerning the actions required. This must be done in writing, and addressed to the issuer of the original notification. Should an objection be made, the CBB will make a final determination, within 30 days of the date of the objection, as specified in Articles 125(c) and 126 of the CBB Law.

        Amended: October 2010
        Added: October 2007

      • EN-3.2.3

        [This Paragraph was moved to Section EN-1.1 in April 2019].

        Deleted: April 2019
        Amended: October 2010
        Added: October 2007