11.12 Interim Powers of CDP

11.12.1

Without prejudice to the rights and powers of CDP or any other body or person under the Clearing Rules,

(1) CDP may suspend, or otherwise restrict the activities of a Clearing Member if it is charged with:—

(a) an offence under the SFA, or

(b) an offence involving fraud or dishonesty, whether in or out of Singapore, or

(c) an offence relating to director's duties; or

(d) an offence under any relevant law or regulation which governs the Clearing Member's other business activities.

(2) The suspension or restriction ends if the Clearing Member is acquitted or the charge is not proceeded with.

Amended on 3 June 2019 3 June 2019.

11.12.2

If CDP is of the opinion that:—

(1) a Clearing Member has, or may have, insufficient capital for the conduct of its business, or

(2) a review should be carried out in respect of a Clearing Member's management policies or business conduct in the interests of the Clearing Member, CDP, other Clearing Members or the investing public,

CDP may do any or all of the following:—

(1) require the Clearing Member to operate its business or in the case of a Bank Clearing Member, its business governed by this Clearing Rules, subject to such restrictions or conditions as CDP decides.

(2) suspend the Clearing Member for a period CDP decides. The suspension shall be announced to all Clearing Members. During the suspension, the Clearing Member:—

(a) shall not clear new transactions without the approval of CDP.

(b) remains liable to complete all contracts outstanding at the time of suspension. However, it shall not deliver any securities or settle any transaction without the approval of CDP.

(3) require 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 Clearing Rules, to step down from day-to-day conduct of the business affairs of the Clearing Member; and

(4) appoint a Manager to manage the business of the Clearing Member or in the case of a Bank Clearing Member, its business governed by this Clearing Rules. CDP shall fix the remuneration of the Manager, which shall be paid by the Clearing Member. The Clearing Member is solely responsible for the Manager's acts and defaults. The Manager shall carry out directions given by CDP in relation to the business of the Clearing Member, including carrying on the business of the Clearing Member in accordance with instructions.

Amended on 1 July 2008 1 July 2008.

11.12.3

Subject to Rule 11.12.4, CDP shall notify the Clearing Member in writing before it exercises any of its powers under this Rule.

11.12.4

If, in CDP's opinion, it is necessary to protect the financial integrity, reputation or interests of CDP, other Clearing Members or the investing public, it may exercise its powers under this Rule without prior notice to the Clearing Member. CDP shall notify the Clearing Member in writing after it has exercised the powers.

11.12.5

CDP shall refer the matter (together with an account of its exercise of the interim powers) to the Disciplinary Committee for a decision within 14 days of CDP's notification of its actions under this Rule. The Disciplinary Committee proceedings in Rule 11.6 apply. The Disciplinary Committee may expedite the proceedings if it thinks fit. CDP's notification shall serve as the written notice under Rule 11.6.1.