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  • CSD-3.6 CSD-3.6 Inspection, Accounting and Internal Audit

    • CSD-3.6.1

      Every member or depository participant must submit to the licensed clearing house or licensed central depository:

      (a) Audited financial reports; and
      (b) Quarterly internal audit reports.
      Amended: April 2016

    • CSD-3.6.2

      The licensed clearing house or licensed central depository shall carry out periodic visits to the offices of its members or depository participants and clearing or depository facilities to review the operating procedures, systems maintenance and compliance with the CBB Law, rules and regulations and its business rules.

      Amended: April 2016

    • CSD-3.6.3

      The board of directors of the licensed clearing house or licensed central depository may appoint a Disciplinary Action Committee (DAC) to deal with any matter relating to allegations of improper conduct from the clients of the members or depository participants and the issuers.

      Amended: April 2016

    • CSD-3.6.4

      The DAC is empowered to :

      (a) Suspend or expel a member or depository participant;
      (b) Declare a security as ineligible on the central depository system;
      (c) Freeze a member or depository participant account; and
      (d) Conduct inspections or call for records and issue notices.

    • CSD-3.6.5

      If a member or depository participant is aggrieved by the action of the DAC, it has the right to appeal directly to the CBB against the action of the DAC, within 30 days of the action of the DAC.

    • CSD-3.6.6

      The CBB shall hear the appeal within two months from the date of filing the appeal.

    • CSD-3.6.7

      The orders passed by the DAC shall be binding on the member or depository participant and the clients.

    • CSD-3.6.8

      The information on all such actions under Paragraph CSD-3.6.4 shall be furnished to the CBB.

      Amended: April 2016