Appointment of Investigator
MIE-2.2.1
(a) TheCMSD may, at any time by order in writing, direct any official of theCMSD specified in the order to conduct a formalinvestigation into the affairs of anySRO , or member of anSRO , or listed company or issuer ofsecurities , or any othercapital market service provider orpersons associated with thesecurities market or any otherperson , and to report thereon to the CBB, as per Article 121 of the CBB Law.(b) TheCMSD may also appoint, with the approval of the Governor, any professional firm to conduct such formalinvestigation referred to in paragraph (a) of this rule.Amended: July 2021MIE-2.2.2
Before it proceeds with an
investigation , theCMSD will satisfy itself that there are grounds to investigate under the statutory provisions that give the CBB powers to appointinvestigators . If the statutory test is met, it will decide whether to carry out aninvestigation after considering all the relevant circumstances. To assist its consideration of cases, theCMSD will apply a set of assessment criteria stated in paragraph MIE-2.2.4. Not all of the criteria will be relevant to every case and there may be other considerations which are not mentioned in the list, but which are relevant to a particular case. TheCMSD's assessment will include considering whether using alternative procedures is more appropriate, taking into account the overall circumstances of theperson concerned and the wider context. Another consideration will be whether the CBB is under a general duty to take action on behalf of, or otherwise to provide assistance to another domestic or overseas authority.MIE-2.2.3
Formal
investigation can be ordered in three ways. Firstly, it can be when a preliminaryinvestigation opened under section MIE-1.11 can be converted into a formalinvestigation based on the findings, facts and evidence gathered during the preliminaryinvestigation . Secondly, prior to completion of the preliminaryinvestigation , it may be determined that it would be appropriate to order a formalinvestigation on the case. Thirdly, a formalinvestigation can also be ordered without any history of a preliminaryinvestigation on the matter.