SECURITIES (DISCIPLINARY COMMITTEE PROCEEDINGS) RULES

SECURITIES (DISCIPLINARY COMMITTEE PROCEEDINGS) RULES

Rule

1. Citation ... .

2. Interpretation .

SECURITIES (DISCIPLINARY COMMITTEE
PROCEEDINGS) RULES

ARRANGENENT OF RULES

PART I

PRELIAMINARY

PART II

INQUIRIES

3. Allegation to be in writing, with affidavit

4.................Transmission of documents ... ...

5. Dismissal without answer by respondent

PART III

6. Appeal to be in writing
7. Transmission of documents

8. Parties

9.
10.
11.
12.
13.
14.
is.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.

APPEALS

PART IV

GENERAL

Further information

Notice of date of bearing
Forms of notice ... ...
Inspection of documents
Failure to appear.
Representation






Hearings to be in camera ... ...
Re-hearing after failure to appear
Notification of decision ... ...
Withdrawal of proceedings ... ...
Adjournments ... ... ... ...
Amendment and additional affidavits
Shorthand notes ...
Service ... ... ...
Power of Disciplinary Committee to dispense with requirements of rules ...
Extension or abridgement of time ...
Retention of documents pending appeal
Admission

Schedule. Forms ...

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SECURITIES (DISCIPLINARY COMMI7ITEE
PROCEEDINGS) RULES

(Cap. 333, section 45)

PART I

PRELIMINARY

[25th August, 1978.]

1. These rules may be cited as the Securities (Disciplinary

Committee Proceedings) Rules.

2. In these rules, unless the context otherwise requires

'affidaviC' includes affirmation;

'allegation' means an allegation of misconduct made against a
respondent under section 39 of the Ordinance;

44 appear' means an appeal under section 58 of the Ordinance;

'appellant' means a person who makes an appeal;

'clerk' means the clerk to the Committee or any deputy or person
appointed by the Committee to perform the duties of that office;

'Committee' means the Disciplinary Committee;

'complainant' means the Commission. the Commissioner or any other
person making an allegation;

'hearing' means the hearing of an inquiry or an appeal;

'inquiry' means an inquiry into an allegation;

'respondent' means any stock exchange or the committee or any
member of the committee of any such exchange against which or
whom an allegation is made.

PARTII

INQUIRIES

3. (1) An allegation shall be in writing and signed by or on behalf of
the complainant in Form 1 in the Schedule and shall be sent to the
Commission together with an affidavit by or on behalf of the
complainant in Form 2 in the Schedule stating the misconduct alleged.

(2) Where the allegation is made by the Commission it may be
signed and the affidavit sworn on behalf of the Commission by





the Chairman or the secretary of the Commission or by such other
person as may from time to time be appointed by the Commission.

4. The Commission shall transmit to the Committee all documents
received by the Commission pursuant to rule 3(1) or any allegation and
affidavit signed and sworn pursuant to rule 3(2).

5. If upon consideration of any such documents transmitted to it
under rule 4, the Committee is of the opinion that no prima facie case is
shown for any disciplinary action, the Committee may dismiss the
allegation without requiring the respondent to answer the allegation and
without hearing the complainant.

PART III

APPEALS

6. An appeal shall be in writing and signed by or on behalf of the
appellant in Form 3 in the Schedule stating the grounds of the appeal
and shall be sent to the Commission.

7. The Commission shall transmit to the Committee all documents
received by the Commission pursuant to rule 6.

PART IV

GENERAL

8. (1) In the case of an allegation made pursuant to rule 3, the
complainant and the respondent shall be parties.

(2) In the case of an appeal made pursuant to rule 6, the appellant
and the Commissioner shall be parties.,

9. The Committee may at any time require any party to supply such
further information and documents in his or its possession or under his
or its control relating to an allegation or an appeal, as the case may be,
as the Committee thinks fit.

10. (1) Where-

(a)an allegation is made pursuant to rule 3 and in the opinion of
the Committee a prima facie case is shown against the
respondent; or

(b) an appeal is made pursuant to rule 6,

the Committee shall fix a day for the hearing and the clerk shall serve
notice thereof on each party to the proceedings and shall serve





(i) in the case of an allegation, on the respondent, or

(ii) in the case of an appeal, on the Commissioner, a copy of the
allegation and of the affidavit or of the appeal, appropriate to the case.

(2) There shall be a period of not less than 21 days between the
service of any such notice and the day fixed therein for the hearing.

11. A notice under rule 10 shall be-

(a)in the case of an allegation, in Form 4 or 5 in the Schedule, as
appropriate; or

(b)in the case of an appeal, in Form 6 or 7 in the Schedule, as
appropriate,
and shall require the party to whom it is addressed to furnish to the
clerk and to every other party at least 14 days before the day fixed
for the hearing, unless the Committee directs otherwise, a list of all
documents which are or have been in his or its possession or control
and on which he or it intends to rely.

12. (1) Any party may inspect the documents included in the list
furnished by any other party.

(2) A copy of any document mentioned in the list furnished by any
party which is or has been in his or its possession or control shall, on
application by the party requiring it, be furnished to that party by the
other, within 7 days after receipt of such application.

13. If any party fails to appear at a hearing the Committee may,
upon proof of service on such party of the appropriate notice of hearing,
proceed to hear and determine the proceedings in his absence, and

(a)in the case of an allegation, in the absence of the complainant;
or

(b) in the case of an appeal, in the absence of the appellant, the
Committee may, in its discretion, -dismiss the allegation or the appeal, as
the case may be, without a hearing.

14. Any party may be represented by solicitor or counsel.

15. Every hearing shall be held in camera, and the Committee shall
determine which persons may be present.

. 16. (1) Any party who has failed to appear at a hearing may, within 1
calendar month from the pronouncement of the decision of the
Committee and upon giving notice to every other party and to the clerk,
apply to the Committee for a re-hearing.





(2) The Committee, if satisfied that it is just that the case should be
re-heard, may grant such application upon such terms as to costs or
otherwise as it thinks fit.

(3) Upon such re-hearing the Committee may amend, vary, add to,
or reverse its decision pronounced upon such previous hearing.

17. The clerk shall notify every decision of the Committee by
sending a copy of that decision to each party concemed.

18. Unless the Committee directs otherwise, no proceedings shall
be withdrawn after they have been transmitted to the Committee
pursuant to rule 4 or 7.

19. The Committee may of its own motion, or upon the application
of any party, adjourn a hearing upon such terms as to costs, or
otherwise, as the Committee shall think fit.

20. (1) If upon the hearing it shall appear to the Committee that the
allegations in an affidavit require to be amended, or added to, the
Committee may permit the affidavit to be amended, or added to, in which
case such affidavit shall be resworn.

(2) If in the opinion of the Committee, such amendment or addition
is not within the scope of the affidavit, the Committee may require the
same to be embodied in a further affidavit.

21. (1) Shorthand notes of proceedings may be taken by a person
appointed by the Committee, and any party to. the proceedings shall be
entitled to inspect the transcript thereof.

(2) The shorthand writer shall, if required, supply to the Committee,
to any party to the proceedings and to the Commission, but to no other
person or body, a copy of the transcript of such notes on payment of
the shorthand writer's charges.

(3) If no shorthand notes be taken, the Chairman of the Committee
shall take a note of the proceedings, and the provisions of this rule as to
inspection and taking of copies shall apply to such note accordingly.

22. (1) Service of any notice or document under these rules may be
effected personally or by registered post addressed

(a)in the case of a stock exchange or the committee of a stock
exchange, to the chairman of the committee of that exchange
at its place of business;

(b)in the case of the Commissioner, to the Commissioner at his
offices;

(c)in the case of the Commission, to the Chairman thereof at the
offices of the Commissioner; and

(d)in every other case, to the last known place of business or
abode of the person to be served,





and such service shall be deemed to be effected at the time when
the letter would be delivered in the ordinary course of post.

(2) Notwithstanding the provisions of paragraph (1), the
Committee may make such order for substituted service as in the
circumstances of the case may appear to be just.

23. The Committee may dispense with any requirements of
these rules respecting notices, affidavits, documents, service, or
time, in any case where it appears to the Committee to be just so
to do.

24. The Committee may extend or abridge the time for doing
anything under these rules.

25. Unless the Committee otherwise orders, all affidavits,
books, papers, records and exhibits produced, used or made in
connexion with any proceedings under these rules shall be retained
by the Committee or the clerk until the time within which any
appeal against a decision of the Committee may be entered has
expired, and, if notice of such appeal is given (subject to the
requirement of such appeal) until the appeal is heard or otherwise
disposed of and thereafter shall be deposited for safe keeping with
the Secretary of the Commission who shall hold the same on behalf
of members of the Committee who alone shall have access thereto.

26. (1) Any party may by notice in writing at any time not
later than 9 days before the day fixed for a hearing call upon any
other to admit any document saving an just exceptions and if such
other party desires to challenge the authenticity of the document
he shall within 6 days after service of such notice give notice that
he does not admit the document and requires it to be proved at the
hearing.

(2) If such other party refuses or neglects to give notice of
non-admission within the time prescribed in paragraph (1), he shall
be deemed to have admitted the document unless otherwise ordered
by the Committee.

(3) Where a party gives notice of non-admission within the
time prescribed by paragraph (1) and the document is proved at the
hearing, the costs of proving the document shall be paid by the
party who has not. admitted the document, whatever the decision
of the Committee may be, unless in its findings the Committee shall
find that there were reasonable grounds for not admitting the
document.

(4) Where a party proves a document without having given
notice to admit under paragraph (1) no costs of proving the docu-
ment shall be allowed, unless otherwise directed by the Committee,
except where the omission to give notice to admit is in the opinion
of the Committee a saving of expenses.





SCHEDULE

FORM i

ALLEGATION AGAINST A STOCK EXCHANGE/
COMMITTEE OF A STOCK EXCHANGE/MEMBER
OF THE COMMITTEE OF A STOCK EXCHANGE

[rule 3.]

IN THE MATTER of C.D.. a Stock Exchange
(or as the case may be) of ...........................

IN THE MATTER of the Securities Ordinance, Cap.
333.

TO: The Securities Commission.

1, the undersigned, A.B., hereby allege that the
Stock Exchange Ltd.lthe Committee of the .............................................
Stock Exchange Ltd.1C.D. a member of the Committee of the .....................

...........Stock Exchange Ltd. has been guilty of misconduct as

Affidavit / Affirmation which accompanies this application and
1 make application that the said may be
required to answer the said allegations and that such order be made as the
Disciplinary Committee shall think right.

In witness whereof I have hereunto set my hand this ...........................

day or

Profession,
business or

Signature ................................................

Address..................................................
.










FORM 2

AFFIDAVIT/AFFIRMATION BY COMPLAINANT

[rule 3.]

IN THE MATTER of C.D., a Stock Exchange
(or as the case may be) of ...........................

.......................

and
IN THE MATTER of the Securities Ordinance,
Cap. 333.

make ' oath/do solemnly sincerely and truly say - as ................

(Here state the facts concisely in
numbered paragraphs, and show
deponent's means of knowledge)

Sworn, affirmed, etc.

* Insert full name, address and description of deponent.

.................................... ..........................................

.................



NOTICE OF APPEAL UNDER SECTION 58
OF THE SECURITIES ORDINANCE
AGAINST DECISION OF COMMISSIONER

TO: The Securities Commission.

[rule 6.]

. ............................................... ...

do hereby give you notice of appeal to the Disciplinary Committee under
section 58(1) of the Securities Ordinance, Cap.333, against the decision of the
Commissioner for Securities communicated to me by letter dated ..................

.............................. 19 that (brief details of decision).

The grounds of this appeal are-

(Here stage concisely the grounds of Weal)

. In witness whereof I have hereunto set my hand this ....

day of .........19

Signature ......................

Profession.






business or
occupation ................................................










FORM 4

NOTICE OF HEARING TO COMPLAINANT
BY THE CLERK TO THE DISCIPLINARY COMMITTEE

[rule 11.]

IN THE MATTER of .Exchange
Ltd / the Committee of Exchange

Ltd/C.D., a member of the Committee of

.............................. Exchange Ltd

and
IN THE MATTER of the Securities Ordinance,
Cap. 333.

TO: A.B., of

Securities Commission.

The day of

/Commissioner for Securities/

. is the day fixed by the Disciplinary
Committee constituted under the Securities Ordinance for the hearing of your
allegation in the matter of .....................................................................

The Disciplinary Committee will sit at .............................................

at ....o'clock in the noon. Your attendance will

be required at the date, time and place aforesaid.

You are required by the Securities (Disciplinary Committee Proceedings) Rules
to furnish to every other party and to the Clerk to the Disciplinary Committee at
the Office of the Securities Commission at ...........................

Hong Kong at least days before the date of hearing,

a list of all the documents on which you intend to rely.

Any party may inspect the documents included in the list furnished by any
other, and a copy of any document mentioned in the list of any party must, on
application by the party requiring it, be furnished to that party by the other within
seven days after receipt of such application.

You are requested to acknowledge the receipt of this notice without delay.

Dated this day of ..

Clerk to the Disciplinary Committee







FORM 5

NOTICE TO RESPONDENT BY THE CLERK
TO THE DISCIPLINARY COMMITTEE

IN THE MATTER of ............. Exchange

Ltd/the Committee of ................ Exchange

Ltd/C.D., a member of the Committee of

.............................. Exchanged Ltd

and
IN THE MATTER of the Securities Ordinance,
Cap. 333.

[rule 11]

TO: * ............................................................

An allegation of misconduct has been made against you under rule 3 of the
Securities (Disciplinary Committee Proceedings) Rules by ...........

............................

The ...day of ...........is the day fixed by the

Disciplinary Committee for the bearing of the proceedings. The committee will

sit at .........at ....o'clock in the

noon. Your attendance will be required at the date, time and place aforesaid.
If you fail to appear, the Disciplinary Committee may, in accordance with rule
13 of the said Rules, proceed in your absence.





You are required by the said Rules to furnish to every other party and to the
Clerk to the Disciplinary Committee at the Office of the Securities Commis

sion at .........Hong Kong at least days

before the date of hearing, a list of all the documents on which you intend to
rely.

Any party may inspect the documents included in the list furnished by any
other, and a copy of any document mentioned in the list of any party must, on
application by the party requiring it, be furnished to that party by the other within
seven days after receipt of such application.

In order to reduce the costs of the hearing you are invited to inform the Clerk
to the Disciplinary Committee not less than seven days before the date of hearing
of any facts set out in the affidavit which are not in dispute.

You are requested to acknowledge the receipt of this notice without delay.

Dated this day of

* Insert name and address of respondent.

Clerk to the Disciplinary Committee








FORM 6

NOTICE TO APPELLANT TO HEARING OF APPEAL

TO: A.B . .........

Take Notice that ...............day of is the day

fixed by the Disciplinary Committee constituted under the Securities Ordinance,

Cap. 333, for the hearing of your appeal dated under

section 58(1) of the Ordinance against the decision of the Commissioner for
Securities.

[rule 11.]

The Disciplinary Committee will sit on

19 .at
a.m./p.m. at

Your attendance will be required at the date, time and place aforesaid. If you
fail to appear, the Disciplinary Committee may, in accordance with rule 13 of
the Securities (Disciplinary Committee Proceedings) Rules, dismiss your appeal
without a hearing.

You are required by the said Rules to furnish to every other party and to the
Clerk to the Disciplinary Committee at the Office of the Securities

Commission at .........................Hong Kong at
least .................................days before the date of hearing, a list of all the documents

on which you intend to rely.

Any party may inspect the documents included in the list furnished by any
other, and a copy of any document mentioned in the list of any party must, on
application by the party requiring it, be furnished to that party by the other within
seven days after receipt of such application.

You are requested to acknowledge the receipt of this notice without delay.

Dated this ..................day of 19

Clerk to the Disciplinary Committee---









FORM 7

NOTICE TO COMMISSIONER OF BEARING OF APPEAL

TO: The Commissioner for Securities.

[rule 11]

Take Notice that .of
has appealed under section 58(1) of the Securities Ordinance, Cap. 333, to the
Disciplinary Committee against your decision dated .................................
19 .that
(brief details of decision appealed against).
.The ....day of .........is the day fixed by the
Disciplinary Committee for the hearing of the appeal. The committee will sit
on ...............19 ..at am./p.m.
at .......................Your attendance will be required at the date,
time and place aforesaid. If you fail to appear, the Disciplinary Committee
may, in accordance with rule 13 of the Securities (Disciplinary Committee
Proceedings) Rules, proceed in your absence.

You are required by the said Rules to furnish to every other party and to
the Clerk to the Disciplinary Committee at the Office of the Securities Com-
mission at least .........days before the date of hearing, a list of all the
documents on which you intend to rely.

Any party may inspect the documents included in the list furnished by any
other, and a copy of any document mentioned in the list of any party must, on
application by the party requiring it, be furnished to that party by the other
within seven days after receipt of such application.

In order to reduce the costs of the hearing you are invited to inform the
Clerk to the Disciplinary Committee not less than seven days before the date of
hearing of any facts which are not in dispute.

You are requested to acknowledge the receipt of this notice without delay.

Dated this...................day of 19

Clerk to the Disciplinary Committee



1987 Ed. Securities (Disciplinary Committee Proceedings) Rules L.N. 196/78. Citation. Interpretation. Allegation to be in writing, with affidavit. Schedule, Forms 1 and 2. Transmission of documents. Dismissal without answer by respondent. Appeal to be in writing. Schedule, Form 3. Transmission of documents. Parties. Further information. Notice of date of hearing. Forms of notice. Schedule, Forms 4, 5, 6 and 7. Inspection of documents. Failure to appear. Representation. Hearings to be in camera. Re-hearing after failure to appear. Notification of decision. Withdrawal of proceedings Adjournments. Amendment and additional affidavits. Shorthand notes. Service. Power of Disciplinary Committee to dispense with requirements of rules. Extension or abridgement of time. Retention of documents pending appeal. Admission.

L.N. 196/78. Citation. Interpretation. Allegation to be in writing, with affidavit. Schedule, Forms 1 and 2. Transmission of documents. Dismissal without answer by respondent. Appeal to be in writing. Schedule, Form 3. Transmission of documents. Parties. Further information. Notice of date of hearing. Forms of notice. Schedule, Forms 4, 5, 6 and 7. Inspection of documents. Failure to appear. Representation. Hearings to be in camera. Re-hearing after failure to appear. Notification of decision. Withdrawal of proceedings Adjournments. Amendment and additional affidavits. Shorthand notes. Service. Power of Disciplinary Committee to dispense with requirements of rules. Extension or abridgement of time. Retention of documents pending appeal. Admission.

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