4.03A Disciplinary Committee Powers

4.03A.1

The Clearing House may initiate disciplinary proceedings and charge a Clearing Member before the Disciplinary Committee if the Clearing House is of the opinion that the Clearing Member has committed any of the following: —

4.03A.1.1 breaches the SFA;

4.03A.1.2 subject to Rules 4.02B.2 and 4.02B.7, breaches this Rules;

4.03A.1.3 breached any relevant laws or regulations that govern the Clearing Member's other business activities;

4.03A.1.4 breached the rules of any other exchange;

4.03A.1.5 engaged in fraud or dishonesty, whether in or out of Singapore;

4.03A.1.6 breached directors' duties;

4.03A.1.7 engaged in conduct that has the effect of circumventing the SFA, SFR, this Rules and/or any other applicable laws or regulations; or

4.03A.1.8 engaged in conduct detrimental to the financial integrity, reputation, interests or operation of the Clearing House.

Added on 27 March 2006 27 March 2006 and amended on 31 December 2013 31 December 2013 and 3 June 2019 3 June 2019.

4.03A.1A

The Disciplinary Committee shall, as a tribunal of first instance hear and determine charges brought by the Clearing House against a Clearing Member pursuant to Rule 4.03A.1. The Disciplinary Committee may exercise its powers against a Clearing Member if it is satisfied, on a balance of probabilities, that the Clearing Member has committed any of the matters set out in Rule 4.03A.1.

Added on 3 June 2019 3 June 2019.

4.03A.2

The Disciplinary Committee may exercise its powers against a Clearing Member if a director, officer, employee or agent breaches, or causes the Clearing Member to breach this Rules.

Added on 27 March 2006 27 March 2006.

4.03A.3

A former Clearing Member, is bound by this Rules in respect of acts or omissions occurring before expulsion. The Clearing House and the Disciplinary Committee retain their respective jurisdiction notwithstanding expulsion.

Added on 27 March 2006 27 March 2006.

4.03A.4

The powers of the Disciplinary Committee include:—

4.03A.4.1 expelling a Clearing Member. The Disciplinary Committee may order a Clearing Member to be expelled notwithstanding that he has resigned;

4.03A.4.2 suspending a Clearing Member;

4.03A.4.3 imposing a fine not exceeding S$250,000 per charge, or in the case of multiple charges, not exceeding S$1,000,000 per hearing, or, in the case of a delivery contract, any other amount as specified in the relevant contract specifications on a Clearing Member;

4.03A.4.4 reprimanding (publicly or privately) a Clearing Member;

4.03A.4.5 requiring an education program to be undertaken;

4.03A.4.6 requiring a compliance program to be undertaken;

4.03A.4.7 imposing any restrictions or conditions on activities that a Clearing Member undertakes or in the case of a Bank Clearing Member, its business governed by this Rules;

4.03A.4.8 requiring reimbursement or compensation to be paid;

4.03A.4.9 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;

4.03A.4.10 ordering a stay of the penalty imposed, pending an appeal to the Appeals Committee;

4.03A.4.11 requiring any director or in the case of a Bank Clearing 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 Clearing Member; and

4.03A.4.12 confirming, changing, or discharging the appointment of a manager to manage the business of the Clearing Member or in the case of a Bank Clearing Member, its business governed by this Rules. The Disciplinary Committee will fix the remuneration of the manager, which must be paid by the Clearing Member. The Clearing Member is solely responsible for the manager's acts and defaults. The manager must carry out directions given by the Disciplinary Committee in relation to the business of the Clearing Member, including carrying on the business of the Clearing Member in accordance with instructions.

Added on 27 March 2006 27 March 2006 and amended on 10 August 2007 10 August 2007, 22 February 2010 22 February 2010 and 3 June 2019 3 June 2019.

4.03A.5

4.03A.5 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 seventh 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 4.03A.5(a), any one or more of the sanctions as set out in Rule 4.03A.4.

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

4.03A.6

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

Added on 3 June 2019 3 June 2019.