Without prejudice to the generality of the powers of the CBB to order formal investigations, the factors that may be considered by the CBB, while deciding to order a formal investigation, include but are not limited to:

(a) Whether the subject matter is a CBB priority in the context of the CBB's objectives and responsibilities, as per Articles 3 and 4 of the CBB Law.
(b) Whether an action would address a problematic industry practice.
(c) Whether the conduct undermines the fairness or integrity of the Kingdom's securities market.
(d) Whether an action would provide an opportunity for the CBB to address violative conduct targeted to a specific market participant, or group of persons that might not otherwise be familiar with the CBB, or the protections afforded by the securities laws.
(e) Whether an action would present a good opportunity to coordinate with other regulators or authorities in the Kingdom and overseas authorities.
(f) Whether the conduct can be addressed by other regulators or authorities.
(g) Whether an action would alert the investing public of a new type of securities fraud or misconduct.
(h) The magnitude of the potential violations involved in the investigation, considering:
(i) The severity and seriousness of the conduct;
(ii) The length of time the conduct continued, or whether it is ongoing;
(iii) The number of violations;
(iv) Whether recidivists were involved;
(v) Whether violations were repeated;
(vi) The amount of harm or potential harm to victims;
(vii) The amount of ill-gotten gains to the violators;
(viii) Whether victims were specifically targeted based on personal or affinity group characteristics;
(ix) for capital market service providers, whether the conduct involved officers, directors, or senior management;
(x) Whether gatekeepers (such as accountants or attorneys) or securities industry professionals are involved.
(i) The resources required to investigate the potential violations, considering:
(i) The complexity of the potential violations;
(ii) The approximate staff man days required over the course of the investigation;
(iii) The duration of the relevant conduct;
(iv) The number of potential violators;
(v) The number and location of potential witnesses;
(vi) The volume of evidence that the staff must collect and review, such as trading records, corporate documents and email correspondence;
(vii) The level of analysis required for complex data and evidence, such as auditor workpapers, bluesheets, or financial data;
(viii) The number and location of witnesses and the scheduling of the examination of persons;
(ix) Travel requirements.
(j) Whether there is an urgent need to file an enforcement action, such as an investigation into ongoing fraud or conduct that poses a threat of imminent harm to investigators.
Amended: July 2021