• Part 10: Part 10: Enforcement Procedure

    • Article 70 - Right to make written representations

      (1) If the Regulatory Authority proposes 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 Authority proposes to take; and
      (B) an opportunity to make written representations to the Regulatory Authority in relation to the proposed action to be taken.
      (2) The Regulatory Authority may 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:
      (A) to the exercise by the Regulatory Authority of its powers under Article 61, 63 or 64; or
      (B) where the Regulatory Authority concludes 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 QFC or 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 Authority decides to exercise a disciplinary power under Part 9 in relation to any Person, it must give such Person a Decision Notice.
      (2) The requirement to give a Decision Notice does not apply to the exercise by the Regulatory Authority of its powers under Article 61, 63 or 64.
      (3) A Decision Notice must:
      (A) be in writing;
      (B) give the Regulatory Authority's reasons 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 Body within 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 Notice must set out the terms of the statement.
      (5) In the case of a financial penalty, the Decision Notice must 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

      If a Person who has received a Decision Notice does not refer the matter to the Appeals Body within the time period specified in the notice, the Regulatory Authority may take the action specified in the Decision Notice.

    • Article 73 - Discontinuance of proceedings

      (1) If the Regulatory Authority decides not to take the action to which a Decision Notice relates, it must give a notice of discontinuance identifying the proceedings which are being discontinued to the Person to whom the Decision Notice was given.
      (2) If a Person to whom a Decision Notice is given does refer the matter to the Appeals Body, that Person may apply to the Appeals Body to stay the action specified in the Decision Notice pending the outcome of the appeal.

    • Article 74 - Publishing Information

      Subject to Article 18 and any other rights and obligations contained in the QFC Law and these Regulations on the part of the Regulatory Authority relating to the publication of information, neither the Regulatory Authority nor any Person to whom a Decision Notice is 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 Authority must send a copy of it to the relevant Person and to any other Person to whom a copy of the relevant Decision Notice was given under Article 76.

    • Article 76 - Third party rights

      (1) If any of the reasons contained in a Decision Notice relate to a matter which:
      (A) identifies a Person (the " Third Party") other than the Person to 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 Party must 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 Party if the Regulatory Authority considers it impractical to do so.
      (4) The Third Party may 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 Authority in relation to him.
      (5) The copy of the Decision Notice must be accompanied by an indication of the Third Party's right to make a reference to the Appeals Body and the procedure in such a reference.
      (6) If the Third Party does refer the matter to the Appeals Body the Third Party may apply to the Appeals Body to stay the action specified in the Decision Notice.
      (7) The Third Party must be given a copy of any notice of discontinuance applicable to the proceedings to which the Decision Notice related.

    • Article 77 - Access to Regulatory Authority material

      (1) If the Regulatory Authority gives a Person a Decision Notice it 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 Authority may refuse a Person access 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 Authority does not allow a Person access 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 Authority may issue Rules relating 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 Notice the Regulatory Authority must follow its stated procedure.
      (3) If the Regulatory Authority changes the procedure in a material way, it must publish revised Rules or a revised statement.

    • Article 79 - Policy in relation to penalties

      (1) The Regulatory Authority must 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's policy 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 Person on 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 Authority may 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 Authority must publish the altered or replacement statement.