5.5 Disciplinary Proceedings

5.5.1 The Compliance Committee upon satisfaction (whether or not a formal investigation has taken place under the Rules) that there is clear evidence of an infringement of the Rules or misconduct by a Member or other person subject to the Rules may commence disciplinary proceedings and take such relevant actions.

 

5.5.2 When the Compliance Committee decides to commence disciplinary proceedings, they shall direct that a written notice (“Notice”) be sent to the Member (or, in the case of proceedings against some other person, that person and any Member with whom he was associated at the time of the matter in question). The Notice shall set out the alleged act of misconduct or infringement, including a summary of facts relied upon.

 

5.5.3 The Member or other person the subject of a Notice shall, if it wishes, have twenty working days (or such further time as the Compliance Committee may in its absolute discretion allow) from the service of the Notice in which to provide a statement of defense (“Defense”) responding to all or any of the allegations, stating its intended pleas and what admissions of fact, if any, it makes. Where no defense has been served and no settlement has been reached, the Exchange will deem the Member or other person the subject of Notice to have accepted the facts and matters alleged in the Notice.

 

5.5.4 The Compliance Committee may, if it deems appropriate after considering the Defense, continue to proceed with the disciplinary proceedings or may choose to discontinue disciplinary proceedings or deal with the matter as set out in Rule 5.

 

5.5.5 Without adjournment the Compliance Committee, or a quorum of the Compliance Committee hearing a case summarily, may amend a Notice by deletion, alteration or addition, or may vary the Rule breach alleged or add another Rule breach provided that they are of the opinion that:

a. the amendment or variation is material to the course of conduct under investigation;

b. the essential character of the allegation or Rule breach has not been changed; and

c. the Member would not be prejudiced in any defense it might wish to put before the Compliance Committee.

In any other circumstances, and in particular should the Compliance Committee, or a quorum of the Compliance Committee hearing a case summarily, determine that a separate or unrelated course of misconduct or an infringement of the Rules may have been revealed, it may order an adjournment to enable the matter to be investigated further.

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