5.4 Investigations

5.4.1 The Exchange shall have full powers and discretion of investigation into alleged infringements of the Rules, act of misconduct and/or breaches of the SFA (where applicable) in relation to the Member’s act, omission or conduct on the Exchange. The Compliance Officer or any person authorized by him may authorize or delegate its powers on investigations into such allegations.


5.4.2 The Exchange’s Compliance Committee shall issue a Notice of Investigation (NoI) notifying the Member concerned that an investigation has been commenced. The NoI shall be sent to the Member or the person concerned and copied to the Member’s compliance officer. The NoI shall contain a brief description of the matter under investigation.


5.4.3 In the course of conducting an investigation, the Exchange may call for the assistance of such professional, legal or accounting advisers, clearing houses, exchanges, regulatory organizations and other advisers or persons as it thinks fit. The Exchange may also call on other departments and officials of the Exchange for such documents, information and assistance as it thinks fit.

Members and other persons subject to the Rules shall offer full co-operation and assistance with all such investigations (whether or not such Member or person is the direct subject of such investigation). Without limitation, each Member (and, so far as applicable, each person subject to the Rules) shall promptly furnish to the Exchange such information and documentary and other material as may reasonably be requested (including without limitation in the case of Members details of the Member’s own and clients’ accounts);

a. Permit those persons appointed to carry out or assist in carrying out the investigation to enter any premises where the Member carries on its business or maintains its records for the purpose of carrying out such investigation.

b. make available for interview such of its Member’s Representatives as may reasonably be requested; and itself answer, and procure that its Member’s Representatives answer, truthfully and fully any question put by or on behalf of the Exchange. If a Member or Member’s Representative fails to attend an interview with the Compliance Officer or a scheduled summary hearing of the Compliance Committee, the Member and/or Member’s Representative may be excluded from the Market until they take reasonable steps to make themselves available on an alternative date;

c. make available for inspection such documents, records or other material in its possession, power or control as may reasonably be required and, upon request, provide copies of the same;

d. use its best endeavours to ensure that so far as possible its agents give similar co-operation.

5.4.4 Each Member and other person subject to the Rules authorizes and shall agree to authorize the Exchange to request any clearing house, investment exchange or regulatory body or person to furnish to the Exchange such information and documents as the Exchange may require in connection with an investigation.


5.4.5 When, in the opinion of the persons conducting the investigation, they have sufficient information, they shall make a written report to the Compliance Officer who may, or may not, recommend to the Compliance Committee that disciplinary proceedings should be commenced.


5.4.6 The Compliance Officer or the Compliance Committee may, without prejudice to any other of their powers:-

a. decide that no further action should be taken and notify any Member or other person concerned in writing accordingly;

b. in the event of a minor infringement or misconduct, issue a written warning (which shall be private save as provided for in paragraph (f) below) to the Member concerned (or, in the case of such an infringement or misconduct by some other person, that person with a copy to any Member with whom he was associated at the time of such infringement or misconduct);

c. commence disciplinary proceedings (including, in an appropriate case, summary proceedings under Rule 5);

d. refer the matter back to the Compliance Department for further enquiry;

e. in the case of the Compliance Committee, make such amendments to the Rules as they think fit;

f. report such of the findings of the investigation to such investment exchanges, clearing houses or other regulatory bodies as they think fit; or

g. publish such findings and in such detail as the Compliance Committee deems appropriate where the matter under investigation is considered of relevance to the market in general or in the public interest;

Provided that the Compliance Officer or the Compliance Committee may, in an appropriate case, take more than one of the above actions or different actions in relation to different Members or other persons concerned in the same investigation.

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