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  • Appointment of Investigator

    • MIE-2.2.1

      (a) The CMSD may, at any time by order in writing, direct any official of the CMSD specified in the order to conduct a formal investigation into the affairs of any SRO, or member of an SRO, or listed company or issuer of securities, or any other capital market service provider or persons associated with the securities market or any other person, and to report thereon to the CBB, as per Article 121 of the CBB Law.
      (b) The CMSD may also appoint, with the approval of the Governor, any professional firm to conduct such formal investigation referred to in paragraph (a) of this rule.
      Amended: July 2021

    • MIE-2.2.2

      Before it proceeds with an investigation, the CMSD will satisfy itself that there are grounds to investigate under the statutory provisions that give the CBB powers to appoint investigators. If the statutory test is met, it will decide whether to carry out an investigation after considering all the relevant circumstances. To assist its consideration of cases, the CMSD 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. The CMSD's assessment will include considering whether using alternative procedures is more appropriate, taking into account the overall circumstances of the person 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 preliminary investigation opened under section MIE-1.11 can be converted into a formal investigation based on the findings, facts and evidence gathered during the preliminary investigation. Secondly, prior to completion of the preliminary investigation, it may be determined that it would be appropriate to order a formal investigation on the case. Thirdly, a formal investigation can also be ordered without any history of a preliminary investigation on the matter.