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  • MIE-1.9 MIE-1.9 Reports from Experts

    • MIE-1.9.1

      Article 121 of the CBB Law enables the CBB to appoint qualified investigators (including professional firms) and Article 63 of the CBB Law enables the CBB to request additional duties from external auditors.

      The CBB may at its discretion, require a CBB licensee or a listed company or an issuer of securities, or any other relevant person to provide a report by an expert in order to support the CBB's market surveillance, investigation and enforcement functions. The costs associated with such appointment of an expert shall be borne by persons required to appoint an expert.

    • MIE-1.9.2

      The factors the CBB will consider when deciding whether to use an expert include:

      (a) If the CBB's objectives for making further enquiries are predominantly for the purposes of fact finding; i.e. gathering historic information or evidence for determining whether enforcement action may be appropriate, the CBB's information gathering and investigation powers under Part 7 of the CBB Law are likely to be more effective and more appropriate than appointing an expert.
      (b) If the CBB's objectives include obtaining expert analysis or recommendations (or both) for say, the purposes of seeking remedial action, it may be appropriate to appoint an expert instead of or in conjunction with the CBB's other available powers.

    • MIE-1.9.3

      The CBB shall normally make clear both to the persons referred to in rule MIE-1.9.1and to the expert, the nature of the concerns that led the CBB to decide to appoint an expert, and the possible uses of the results of the report. A report the CBB commissions for purely diagnostic purposes may identify issues which could lead to the appointment of an investigator and/or enforcement action.

    • MIE-1.9.4

      The CBB shall:

      a) Require persons referred to in rule MIE-1.9.1 to appoint experts only for specific purposes, rather than for general enquiry;
      b) Not use the procedure as a matter of routine in relation to particular persons;
      c) Use the procedure only after having considered the alternatives;
      d) Normally use the procedure because of the added value to be gained from use of an expert, because of their particular expertise or knowledge, not because of CBB's resource constraints;
      e) Take into account cost implications, including whether the likely cost of an expert's report is proportionate and will provide enough benefit, having regard to the issue in question and the resources of the persons referred to in rule MIE-1.9.1;
      f) Take into account the expected benefit to the persons referred to in rule MIE-1.9.1; and
      g) Use the procedure in a focused, proportionate way and ensure that reports are scoped accordingly.

      This policy does not preclude the use of the same procedure for generically similar purposes in different cases, for example, to review systems and controls of persons referred to in rule MIE-1.9.1 or to obtain verification of information provided to the CBB.

    • Who the CBB will Nominate or Approve when Using Experts

      • MIE-1.9.5

        When considering whether to nominate or approve an expert to make a report, the CBB will have regard to such factors as whether the proposed person appears to have:

        (a) The skills necessary to make a report on the matter concerned;
        (b) The ability to complete the report within the time required;
        (c) Relevant specialised knowledge on the matter to be reported on;
        (d) Any professional difficulty or potential conflict of interest in reviewing the matters to be reported on, including but not limited to questions reflecting on the quality or reliability of work previously carried out by the expert;
        (e) Independence, bearing in mind the closeness of any existing professional or commercial relationship, to give an objective opinion on such matters as:
        (i) Matters already reported on by the expert (e.g. on the firm's financial statements or in relation to a firm's systems and controls);
        (ii) Matters that are likely to be contentious and may result in disciplinary or other enforcement actions against the persons referred to in rule MIE-1.9.1, its management, shareholders or major shareholders; or
        (iii) Matters that the expert has been involved in, in another capacity.

      • MIE-1.9.6

        In appropriate circumstances it may be cost effective for the CBB to nominate or approve the appointment of an expert who has already acted for, or advised the persons referred to in rule MIE-1.9.1. For example, the CBB may nominate or approve the appointment of a firm's auditor to prepare a report, taking into account where relevant, the considerations set out in paragraph MIE-1.9.2.