Whole Section

  • 7.6 Disciplinary Committee Powers and Related Matters

    • 7.6.1

      The Exchange may initiate disciplinary proceedings and charge a Member, Approved Trader, or Registered Representative before the Disciplinary Committee if the Exchange is of the opinion that the Member, Approved Trader or Registered Representative has committed any of the following:

      (a) subject to Rules 7.2.1A(b) and 7.2.1A(g), committed any Rule Violation;
      (b) breached any other relevant foreign laws, or regulations which governs the business activities of that Member, Approved Trader or Registered Representative, whether in or out of Singapore;
      (c) breached any director's duties;
      (d) engaged in any conduct that has the effect of circumventing the Act, relevant applicable laws and regulatory requirements relating to the regulation or business conduct of markets and licenced entities, or this Rules;
      (e) engaged in any conduct which is inconsistent with just and equitable principles of trading; or
      (f) engaged in any conduct that is detrimental to the financial integrity, reputation or interests of the Exchange, or Markets.

      Amended on 1 April 20141 April 2014 and 3 June 20193 June 2019.

    • 7.6.1A

      The Disciplinary Committee shall, as a tribunal of first instance hear and determine charges brought by the Exchange against a Member, Approved Trader, or Registered Representative pursuant to Rule 7.6.1. The Disciplinary Committee may exercise its powers against a Member, Approved Trader, or Registered Representative if it is satisfied, on a balance of probabilities, that the Member, Approved Trader, or Registered Representative has committed any of the matters set out in Rule 7.6.1.

      Added on 3 June 20193 June 2019.

    • 7.6.2 Powers of the Disciplinary Committee

      The Disciplinary Committee may impose one or more of the following Sanctions:

      (a) expelling a Member, Approved Trader or Registered Representative. The Disciplinary Committee may order a Member, Approved Trader, or Registered Representative to be expelled notwithstanding that he has resigned;
      (b) suspending a Member, Approved Trader, or Registered Representative;
      (c) imposing a penalty not exceeding S$250,000 per charge on the Member, Approved Trader, or Registered Representative concerned, or in the case of multiple charges, not exceeding S$1,000,000 per hearing;
      (d) reprimanding (publicly or privately) a Member, Approved Trader, or Registered Representative;
      (e) requiring an education program to be undertaken by the Member, Approved Trader or Registered Representative concerned;
      (f) requiring a compliance program to be undertaken by the Member, Approved Trader or Registered Representative concerned;
      (g) imposing any restrictions or conditions on activities that a Member, Approved Trader, or Registered Representative undertakes, or, in the case of a Bank Trading Member, undertakes for the Bank Trading Member's Business Governed by this Rules;
      (h) requiring a Member, Approved Trader, or Registered Representative to pay reimbursement or compensation;
      (ha) ordering payment of fines by instalments, which shall not exceed 12 months from the date of imposition of the fine, unless otherwise permitted by the Disciplinary Committee;
      (i) requiring any director of the Member concerned, or in the case of a Bank Trading Member, any director or person in a senior management position who is responsible for its Business Governed by this Rules, to step down from day-to-day conduct of the business affairs of the Member; or
      (j) appointing a manager to manage the business of the Member concerned, or, in the case of a Bank Trading Member, its Business Governed by this Rules. The Disciplinary Committee shall fix the remuneration of the manager, which shall be paid by the Member concerned. The Member concerned is solely responsible for the manager's acts and defaults. The manager shall carry out directions given by the Disciplinary Committee in relation to the conduct of the business of the Member concerned.

      The Disciplinary Committee may order a stay of any Sanction imposed, pending an appeal to the Appeals Committee.

      Amended on 25 August 200925 August 2009 and 3 June 20193 June 2019.

    • 7.6.2A Mandatory Minimum Penalties to be Imposed by Disciplinary Committee for certain Rule Violations

      Where a mandatory minimum penalty has been stipulated for a particular Rule Violation in the thirteenth column of Schedule A, the Disciplinary Committee:

      (a) shall impose a penalty not lower than such minimum amount; and
      (b) may choose to impose, in addition to the penalty in Rule 7.6.2A(a), any one or more of the sanctions set out in Rule 7.6.2.

      Added on 16 May 201116 May 2011 and amended on 3 June 20193 June 2019.

    • 7.6.2B

      A failure to comply with any Sanction imposed by the Disciplinary Committee constitutes a breach of this Rules.

      Added on 3 June 20193 June 2019.

    • 7.6.3 Exercise of Power by Disciplinary Committee Due to Breach by Chief Executive Officer, Director or Key Personnel

      The Disciplinary Committee may exercise its powers against a Member if that Member's chief executive officer, any director or key personnel who is suitably qualified and experienced to implement, oversee and maintain adequate internal procedures and risk management controls as contemplated under the Rules commits, or causes that Member to commit any of the acts described in Rule 7.6.1, whether or not such chief executive officer, director or key personnel is so authorised to act on behalf of the Member.

    • 7.6.4 Former Member Bound by Rules for Acts or Omission Before Expulsion

      A former Member, Approved Trader or Registered Representative is bound by this Rules in respect of acts or omissions occurring before expulsion. The Exchange and the Disciplinary Committee retain their respective powers notwithstanding expulsion.*

      * Augments Rule 2.15.5 which refers to Members only.