11.5 Disciplinary Committee Powers

11.5.1

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

(1) breached the SFA

(2) subject to Rules 11.3A.2 and 11.3A.7, breached the Clearing Rules or Clearing Directives,

(3) breached any relevant laws or regulations that govern the Clearing Member's other business activities,

(4) breached the rules of any other exchange,

(5) engaged in fraud or dishonesty, whether in or out of Singapore,

(6) breached directors duties,

(6A) engaged in conduct that has the effect of circumventing the Clearing Rules, the SFA, or any laws, regulations;

(7) engaged in conduct detrimental to the financial integrity, reputation or interests of CDP, other Clearing Members or the investing public.

Amended on 3 June 2019 3 June 2019.

The Disciplinary Committee shall, as a tribunal of first instance, hear and determine charges brought by CDP against a Clearing Member pursuant to Rule 11.5.1. 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 11.5.1.

Added on 3 June 2019 3 June 2019.

11.5.2

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, the Clearing Rules or any Clearing Directives.

11.5.3

A former Clearing Member is bound by these Clearing Rules in respect of acts occurring before the registration ended or before expulsion. CDP and the Disciplinary Committee retain their respective jurisdiction, notwithstanding the ending of registration or expulsion.

11.5.4

The powers of the Disciplinary Committee include:—

(1) expelling a Clearing Member. The Disciplinary Committee may order a Clearing Member to be expelled notwithstanding that he has resigned

(2) suspending a Clearing Member;

(3) imposing a fine not exceeding S$250,000 per charge on a Clearing Member, or in the case of multiple charges, not exceeding S$1,000,000 per hearing;

(4) reprimanding (publicly or privately) a Clearing Member;

(5) requiring an education program to be undertaken;

(6) requiring a compliance program to be undertaken;

(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 Clearing Rules;

(8) requiring compensation to be paid;

(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;

(10) ordering a stay of the penalty imposed, pending an appeal to the Appeals Committee;

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

(12) confirming, changing or discharging the appointment of a Manager under Rule 11.12.2(4).

Amended on 1 July 2008 1 July 2008 and 3 June 2019 3 June 2019.

11.5.6

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

Added on 3 June 2019 3 June 2019.

11.5.5

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:

(1) shall impose a penalty not lower than such minimum amount; and

(2) may choose to impose, in addition to the penalty in Rule 11.5.5(1), any one or more of the sanctions as set out in Rule 11.5.4.

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

11.5.6

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

Added on 3 June 2019 3 June 2019.