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  • Users of Capital Market Service Providers and Persons other than Licensees and Listed Companies

    • MIE-3.6.7

      Users of capital market service providers and other persons who are neither licensees nor listed companies must also not engage in conduct that would cause harm to capital markets or that would contravene the CBB Law, its regulations, resolutions or directives, or any other applicable laws relating to capital markets.

      (a) [This Subparagraph has been deleted in July 2021].
      (b) [This Subparagraph has been deleted in July 2021].
      (c) [This Subparagraph has been deleted in July 2021].
      Where the CBB discovers, suspects or identifies such conduct, it may take the following actions or measures:
      i. Warning:

      A warning may be sent to relevant persons clearly setting out the CBB's concerns and requesting them to stop or cease the particular conduct.
      In certain cases, despite concerns about the behaviour or evidence of a breach, the CBB may decide that it is not appropriate, having regard to all the circumstances of the case, to take formal action. This is consistent with the CBB’s risk-based approach. The purpose of the warning is to make the relevant persons aware of the issue and to permit the taking of full and immediate remedial action.
      ii. [This Subparagraph has been deleted in July 2021].
      iii. Restricting Accounts/Activities:

      Instructing licensed exchanges, clearing houses, central depositories, brokerage firms, etc. to restrict the accounts of relevant persons who fail to comply with the laws, regulations and rules relating to capital markets or to restrict such persons from conducting transactions or engaging in activities that are relevant to the accounts.
      iv. [This Subparagraph has been deleted in July 2021].
      v. [This Subparagraph has been deleted in July 2021].
      iv. [This Subparagraph has been deleted in July 2021].
      In addition to the above, the CBB may initiate proceedings as follows:
      (b) Criminal Sanction under Article 166

      The CBB may initiate proceedings for imposing criminal sanctions in respect of offences which result in the violation of Articles 81 or 85 of the CBB Law relating to issuing securities and preparing prospectuses.
      (c) Criminal Sanction under Article 167

      The CBB may initiate proceedings for imposing criminal sanctions in respect of insider trading offences which result in the violation of Article 100 of the CBB Law.
      (d) Criminal Sanction under Article 168

      The CBB may initiate proceedings for imposing criminal sanctions in respect of market manipulation offences that result in a violation of Article 106 of the CBB Law.
      (e) Criminal Sanction under Article 170

      The CBB may initiate proceedings for imposing criminal sanctions in respect of any forging, concealing or destroying of any document relating to a current investigation or an investigation likely to be conducted in accordance with Chapter (1) of Part 9 of the CBB Law.
      (f) Criminal Sanction under Article 171

      The CBB may initiate proceedings in relation to Article 171 of the CBB Law concerning any person who discloses in bad faith any Confidential Information in contravention of the provisions of Part (8) of the CBB Law.
      (g) Criminal Sanction under Article 172

      The CBB may initiate proceedings in relation to Article 172 of the CBB Law concerning any legal person, where any of the crimes stated in the CBB Law were committed in its name or for its account or by means of any of its methods and which resulted from the action or gross negligence or approval or under the cover of any member of the board of directors or management or any other official of that legal person or any person who acts in such capacity.
      (h) [This Subparagraph has been deleted in July 2021].
      (i) [This Subparagraph has been deleted in July 2021].
      Amended: July 2021