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 orlicensed central depository :(a) Audited financial reports; and(b) Quarterly internal audit reports.Amended: April 2016CSD-3.6.2
The
licensed clearing house orlicensed central depository shall carry out periodic visits to the offices of itsmembers ordepository 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 2016CSD-3.6.3
The board of directors of the
licensed clearing house orlicensed central depository may appoint a Disciplinary Action Committee (DAC) to deal with any matter relating to allegations of improper conduct from the clients of themembers ordepository participants and theissuers .Amended: April 2016CSD-3.6.4
The DAC is empowered to :
(a) Suspend or expel amember ordepository participant ;(b) Declare a security as ineligible on thecentral depository system;(c) Freeze amember ordepository participant account; and(d) Conduct inspections or call for records and issue notices.CSD-3.6.5
If a
member ordepository 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 ordepository 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