Part 10: Part 10: Enforcement Procedure
Article 70 - Right to make written representations(1) If the
Regulatory Authorityproposes to exercise its disciplinary powers under Part 9 in relation to any Person, it must first give that Person:(A) a written notice specifying the action which the Regulatory Authorityproposes to take; and(B) an opportunity to make written representations to the Regulatory Authorityin relation to the proposed action to be taken.(2) The Regulatory Authoritymay specify in any such notice the manner and time within which any such written representations must be made.(3) The requirement under Article 70(1) shall not apply:(B) where the Regulatory Authorityconcludes that any delay likely to arise as a result of the requirement under Article 70(1) might be prejudicial to the interests of the clients or customers of the relevant Person, the QFCor the Financial System. Amended by QFC Reg 2010-2 (as from 9th December 2010)
Article 71 - Decision Notices(1) Subject to Articles 70 and 71(2), if the
Regulatory Authoritydecides to exercise a disciplinary power under Part 9 in relation to any Person, it must give such Persona Decision Notice.(2) The requirement to give a Decision Noticedoes not apply to the exercise by the Regulatory Authorityof its powers under Article 61, 63 or 64.(3) A Decision Noticemust:(A) be in writing;(B) give the Regulatory Authority'sreasons for the decision to take the action to which the notice relates;(C) state whether Article 77 (Access to Regulatory Authority Material) applies and, if so, describe its effect; and(D) give an indication of:(i) any right to have the matter referred to the Appeals Bodywithin a reasonable period specified in the notice; and(ii) the procedure on such a reference.(4) In the case of a statement under Article 58 the Decision Noticemust set out the terms of the statement.(5) In the case of a financial penalty, the Decision Noticemust state the amount of the financial penalty and the period within which it is to be paid. Amended by QFC Reg 2010-2 (as from 9th December 2010)
Article 72 - Implementation of a Decision Notice
Personwho has received a Decision Noticedoes not refer the matter to the Appeals Bodywithin the time period specified in the notice, the Regulatory Authoritymay take the action specified in the Decision Notice.
Article 73 - Discontinuance of proceedings(1) If the
Regulatory Authoritydecides not to take the action to which a Decision Noticerelates, it must give a notice of discontinuance identifying the proceedings which are being discontinued to the Personto whom the Decision Noticewas given.(2) If a Personto whom a Decision Noticeis given does refer the matter to the Appeals Body, that Personmay apply to the Appeals Bodyto stay the action specified in the Decision Noticepending the outcome of the appeal.
Article 74 - Publishing Information
Subject to Article 18 and any other rights and obligations contained in the
QFC Lawand these Regulationson the part of the Regulatory Authorityrelating to the publication of information, neither the Regulatory Authoritynor any Personto whom a Decision Noticeis given or copied may publish the notice or any details concerning it.
Article 75 - Publication of statements
After a statement under Article 58 is published, the
Regulatory Authoritymust send a copy of it to the relevant Personand to any other Personto whom a copy of the relevant Decision Noticewas given under Article 76.
Article 76 - Third party rights(1) If any of the reasons contained in a
Decision Noticerelate to a matter which:(A) identifies a Person(the " Third Party") other than the Personto whom the notice is given, and(B) in the opinion of the Regulatory Authority, is prejudicial to the Third Party,a copy of the notice must be given to the Third Party.(2) The notice copied to the Third Partymust specify a reasonable period within which he may make representations to the Regulatory Authority.(3) A copy of the notice is not required to be given to a Third Partyif the Regulatory Authorityconsiders it impractical to do so.(4) The Third Partymay refer to the Appeals Body:(A) the decision in question or any aspect of the decision, so far as it relates to him; or(B) any opinion expressed by the Regulatory Authorityin relation to him.(5) The copy of the Decision Noticemust be accompanied by an indication of the Third Party'sright to make a reference to the Appeals Bodyand the procedure in such a reference.(6) If the Third Partydoes refer the matter to the Appeals Bodythe Third Partymay apply to the Appeals Bodyto stay the action specified in the Decision Notice.(7) The Third Partymust be given a copy of any notice of discontinuance applicable to the proceedings to which the Decision Noticerelated.
Article 77 - Access to Regulatory Authority material(1) If the
Regulatory Authoritygives a Persona Decision Noticeit must allow him access to the material on which it relied in taking the decision which gave rise to the obligation to give the notice.(2) The Regulatory Authoritymay refuse a Personaccess to particular material if, in its opinion, allowing access to the material would not be in the public interest or would not be fair (whether to other parties to whom the material relates or otherwise).(3) If the Regulatory Authoritydoes not allow a Personaccess to material, it must give him written notice of:(A) the refusal; and(B) the reasons for it.
Article 78 - Procedure in relation to Decision Notices(1) The
Regulatory Authoritymay issue Rulesrelating to the procedure that it proposes to follow in relation to the giving of Decision Notices.(2) Subject to Article 69 (Procedural Irregularities), when giving a Decision Noticethe Regulatory Authoritymust follow its stated procedure.(3) If the Regulatory Authoritychanges the procedure in a material way, it must publish revised Rulesor a revised statement.
Article 79 - Policy in relation to penalties(1) The
Regulatory Authoritymust prepare and publish a statement of its policy with respect to:(A) the imposition of financial penalties under Article 59; and(B) the amount of penalties under Article 59.(2) The Regulatory Authority'spolicy in determining the amount of a financial penalty must include a requirement to have regard to:(A) the seriousness of the contravention in question in relation to the nature of the requirement contravened;(B) the extent to which that contravention was deliberate or reckless;(C) whether the Personon whom the penalty is to be imposed is an individual; and(D) the effect on third parties, clients or customers and the best interests of the Financial System.(3) The Regulatory Authoritymay at any time alter or replace a statement issued under this Article.(4) If a statement published under this Article is altered or replaced, the Regulatory Authoritymust publish the altered or replacement statement.