• MIE-2.1 MIE-2.1 Scope of Investigation

    • MIE-2.1.1

      Notwithstanding anything in this Module, or any other rules and regulations of the CBB, the Governor of the CBB may, if he thinks fit and it is in the public interest to do so, order an investigation as per Article 121 of the CBB Law.

      (a) The CBB may conduct such investigation as it considers necessary or expedient for any of the following purposes:
      (i) to exercise any of its powers or to perform any of its functions and duties under the CBB Law;
      (ii) to ensure compliance with the CBB Law, rules, regulations, directives, or any written direction issued under the CBB Law;
      (iii) to investigate an alleged or suspected contravention of any provision of the CBB Law, rules, regulations, or directives, or any written direction issued under the CBB Law;
      (iv) to investigate whether the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market in violation of the CBB Law, rules and regulations; or
      (v) to investigate whether any capital market service provider, or any person associated with the securities market, or any other person has violated any of the provisions of the CBB Law, or the rules, regulations or directives issued thereunder.
      (b) A requirement imposed by the CBB in the exercise of its powers under Parts 7 or 9 of the CBB Law shall be deemed to have effect notwithstanding any obligations as to secrecy or other restrictions upon the disclosure of information imposed by any prescribed written law or any requirement imposed thereunder, any rule of law, any contract or any rule of professional conduct.
      (c) Any person who complies with a requirement imposed by the CBB in the exercise of its powers under Parts 7 or 9 of the CBB Law shall not be treated by the CBB as being in breach of any restriction upon the disclosure of information, or thing imposed by any prescribed written law or any requirement imposed thereunder, any rule of law, any contract or any rule of professional conduct.
      (e) In this Module, "requirement by the CBB" includes a requirement imposed by the CMSD or an investigator appointed by the CBB to conduct a formal investigation.
      Amended: July 2021

    • MIE-2.1.2

      When necessary, the CMSD may appoint one or more qualified investigators to conduct an investigation with respect to the following, in accordance with Chapter 1 of Part 9 (Articles 121-124) of the CBB Law:

      (a) Nature or position of the business of the capital market service provider;
      (b) A particular aspect of the businesses of the capital market service provider;
      (c) The ownership or control of the capital market service provider;
      (d) Whether the capital market service provider is practicing the very business licensed thereto, and assessing to what extent the capital market service provider is abiding, in providing the said business, by the provisions of the law and the terms and conditions of the licence.
      (e) Whether the capital market service provider is carrying out unlicensed business;
      (f) Whether the listed companies are abiding by the procedures and principles of listing referred to in paragraph (c) of Article 86 of the CBB Law.

      The investigator may conduct an investigation, where necessary, on the business of any member of a group or company to which the capital market service provider under investigation is a party. The capital market service provider under investigation must be notified in writing of the decision to investigate its business.

      Amended: July 2021

    • MIE-2.1.3

      In exercise of powers available to the CBB under Article 38 of the CBB Law, the CBB implements the scope referred to in rule MIE-2.1.2 above for the purpose of achieving the objectives of the CBB stated in Article 3 of the CBB Law, and discharging duties and responsibilities mandated to the CBB vide Article 4 of the CBB Law, the matters referred to in rule MIE-2.1.2 (a)-(f) shall include the following:

      (i) Investigation of matters considered expedient for the purpose of ensuring compliance with the CBB Law, or any rules or regulations issued thereunder.
      (ii) Alleged or suspected contravention of any provision of the CBB Law or rules and regulations made thereunder, or any directive issued by the CBB.
      (iii) Whether the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market in violation of the CBB Law, rules and regulations; or
      (iv) Whether a capital market service provider, or any person associated with the securities market, or any other person has violated any of the provisions of the CBB Law, or the rules, regulations or directives issued thereunder or business rules of SROs.
      Amended: July 2021

    • Self-Incrimination and Savings for Advocates and Solicitors

      • MIE-2.1.4

        (a) A person is not excused from disclosing information to the CBB or, as the case may be, an investigator appointed by the CBB to conduct a formal investigation, under a requirement made of him in any provision of this Module, on the grounds that the disclosure of the information might tend to incriminate him.
        (b) Where a person claims, before making a statement disclosing information that he is required to under any provision of this Module to the CBB or, as the case may be, an investigator appointed by the CBB to conduct a formal investigation, that the statement might tend to incriminate him, that statement shall not be used by the CBB to support any CBB disciplinary measures against him.
        (c) Nothing in this Module shall:
        (i) Compel an advocate and solicitor to disclose or produce a privileged communication, or a document or other material containing a privileged communication, made by or to him in that capacity; or
        (ii) Authorise the taking of any such document or other material which is in his possession.
        (d) An advocate and solicitor who refuses to disclose the information to produce the document or other material referred to in paragraph (c) shall nevertheless be obliged to give the name and address (if he knows them) of the person to whom, or by or on behalf of whom, that privileged communication was made.
        Amended: July 2021