• DRA-2.2 DRA-2.2 Disciplinary Action at SRO Pursuant to Complaints

    • DRA-2.2.1

      In addition to facilitating the resolution of complaints and providing an arbitration mechanism, all SROs shall analyse complaints received together with all the relevant information, records and data available with the SROs, in order to detect potential cases of contraventions of the CBB Law and regulations, SRO's business rules and other applicable laws, rules and regulations by any person.

      July 2010

    • DRA-2.2.2

      If the analysis of the known facts and potential evidence indicates contraventions, the SRO shall consider whether a sufficient, credible source of facts and evidence suggests contravention of the CBB Law, rules and regulations or business rules of the SRO. Some of the factors that could be considered by the SRO include, but are not limited to:

      (a) The laws or rules or regulations that could potentially be considered as having been contravened or violated;
      (b) The severity and/or seriousness of such contravention or violation;
      (c) The potential magnitude of such contravention or violation;
      (d) The potential losses involved or harm to an investor or investors;
      (e) Whether the affected group is particularly vulnerable or at risk; and
      (f) Whether the conduct is ongoing.
      July 2010

    • DRA-2.2.3

      After conducting an analysis referred to in rule DRA-2.2.2, the SRO shall, based on the evidence and facts available, undertake an investigation for imposing disciplinary action as per Chapter 4 of this Module and simultaneously report the matter to the CMSD of the CBB.

      July 2010

    • DRA-2.2.4

      The SRO shall conduct its own investigations and initiate disciplinary proceedings as per its business rules. This is without prejudice to any enforcement measures by the CBB or criminal prosecution.

      July 2010

    • DRA-2.2.5

      The SRO's report to the CMSD shall include:

      (a) Facts of the case;
      (b) Laws, rules and regulations, or business rules of the SRO that could potentially have been contravened or violated;
      (c) Prima-facie conclusions and evidence available; and
      (d) Scope and nature of the investigation undertaken by the SRO.
      July 2010

    • DRA-2.2.6

      SROs shall complete the investigation referred to in rule DRA-2.2.4 and paragraph DRA-2.2.5 promptly and shall determine whether a reference to the disciplinary committee is required. The findings of the investigations and the conclusions arrived at after the investigation along with supporting facts and evidence shall be submitted to the CMSD within a period of 30 days from the date on which the matter was reported to the CBB, as per rule DRA-2.2.3.

      July 2010

    • DRA-2.2.7

      The CMSD will consider any report referred to in rules DRA-2.2.3 and DRA-2.2.6 from the SRO, along with the information, records and data available with the CMSD for the purposes of market surveillance, investigation and enforcement functions, as per the Market Surveillance, Investigation and Enforcement Module (MIE Module).

      July 2010