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 theSROs , 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 anyperson .July 2010DRA-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 theSRO . Some of the factors that could be considered by theSRO 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 2010DRA-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 theCMSD of the CBB.July 2010DRA-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 2010DRA-2.2.5
The
SRO's report to theCMSD shall include:(a) Facts of the case;(b) Laws, rules and regulations, or business rules of theSRO 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 theSRO .July 2010DRA-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 theCMSD 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 2010DRA-2.2.7
The
CMSD will consider any report referred to in rules DRA-2.2.3 and DRA-2.2.6 from theSRO , along with the information, records and data available with theCMSD for the purposes of market surveillance, investigation and enforcement functions, as per the Market Surveillance, Investigation and Enforcement Module (MIE Module).July 2010