8.01 In this Chapter, “member” includes a member’s representatives and
employees and in the case of a hearing pursuant under Rule 3.05 an applicant for
membership of GASCI.
8.02 There is hereby established a Disciplinary Committee whose membership
shall be determined by the Board from time to time but which shall include one
or more lay persons sufficient to secure, in the view of the Board, a proper
balance between the interests of GASCI, its members and their customers.
8.03 A member shall co-operate fully with any enquiry made by the Disciplinary Committee and shall give all necessary assistance including -
(a) furnishing to the Disciplinary Committee promptly, or within such reasonable time as may be specified by the Disciplinary Committee, such information and accounts as the Disciplinary Committee may reasonably require;
(b) permitting directors, officers, representatives or other employees to be interviewed by or on behalf of the Disciplinary Committee, ensuring as far as possible that they are made available for interview and answer truthfully and fully any questions put to them;
(c) giving at all times full access to any premises where the member carries on his business or maintains records; and
(d) permitting documents, records or other material in his possession or
under his control to be produced to, inspected and, where necessary, copied by
the Disciplinary Committee.
8.04 The Disciplinary Committee may exercise any of the following powers -
(a) declare that there is no case for the member to answer;
(b) decide that no further action should be taken;
(c) issue a private warning or reprimand to the member;
(d) issue a notice of public censure against the member;
(e) impose a fine on the member in such amount as it considers appropriate but in any event not exceeding $250,000;
(f) suspend or revoke the registration of the member’s representatives;
(g) recommend to GASCI that the Board makes an expulsion order or suspension
order under rule 8.05 in respect of the member.
8.05 The Board shall, before refusing membership or imposing conditions on such membership or imposing conditions on employment by a member and before disciplining a member or an employee of a member, comply with the procedures specified for orders under section 38 (4) of the Act.
The Board may expel a member from membership of GASCI or suspend all or any
of a member’s rights of membership or impose conditions on such membership, or
impose conditions on employment by a member for a fixed or continuing period by
making an expulsion order or a suspension order without complying as required by
subsection 38 (4) of the Act where the Board is satisfied that the member –
(a) has ceased to be a fit and proper person to carry on the business of dealing in securities;
(b) has contravened any provision of the Act, any regulation made under the Act or of these rules;
(c) has provided GASCI with false, inaccurate or misleading information in purported compliance with any requirement under these rules; or
(d) in any other case where the Board feels such action to be appropriate for the protection of investors.
(e) has been expelled or is under suspension from another self-regulatory organisation.
Where the Board without complying as required by 38 (4) of the Act they shall
provide an opportunity for a hearing within seven days of its decision and the
suspension, prohibition or limitation shall remain in effect until the hearing
8.06 Where the Board has a reasonable belief that –
(a) there are circumstances suggesting that a member is not a fit and proper
person to carry on the business of dealing in securities; or
(b) there has been a contravention by a member of the Act, any regulation
made under the Act or of these rules,
and the Board decides that the matter warrants being made the subject of
disciplinary proceedings, the Board shall refer the matter to the Disciplinary
Committee for determination by way of disciplinary proceedings.
8.07 The Disciplinary Committee shall hear and determine disciplinary
proceedings against a member referred to it by the Board under rule 8.06.
8.08 (1) The Board shall appoint a suitably qualified and experienced
individual to act as secretary to the Disciplinary Committee to carry out its
(2) The secretary may sit with the Disciplinary Committee but may not take
part in its deliberations.
8.09 Within 7 days of the referral of disciplinary proceedings to the
Disciplinary Committee, the secretary to the Disciplinary Committee shall serve
on the member a concise statement of the allegations of fact and law which shall
comprise the charge or charges and a summary of the principal facts to be relied
8.10 After the service of a statement of the allegations under rule 8.09
except where the member has notified the secretary to the Disciplinary Committee
in writing that all charges are to be admitted –
(a) the secretary to the Disciplinary Committee shall, within 7 days of the
service of the statement of the allegations, serve on the member copies of any
documents on which the Disciplinary Committee intends to rely and a list of the
witnesses it proposes to call together with an outline of the proposed evidence;
(b) the member shall, within 14 days of the secretary to the Disciplinary
Committee complying with the requirement under paragraph (a), serve on the
secretary to the Disciplinary Committee a statement of defence which shall
include its intended pleas to the charges, which evidence is agreed, which
documents are agreed, what admission of facts the member makes, and a list of
the witnesses it proposes to call together with an outline of their proposed
8.11 (1) The secretary to the Disciplinary Committee shall give the member
not less than 14 days written notice of the time and place of hearing.
(2) The notice of hearing shall include the statement that, if the member
fails to attend at the hearing, the Disciplinary Committee may proceed without
giving the member further notice.
8.12 The member may admit all or any of the charges referred to in the
statement of the allegations by notice in writing to the secretary to the
Disciplinary Committee not less than 2 days before the day of the hearing.
8.13 (1) The member shall attend the hearing by an officer or by its
(2) If the member fails to attend the hearing, the Disciplinary Committee may
proceed in its absence.
8.14 (1) The standard of proof shall be that applicable in civil proceedings
(the balance of probability).
(2) If the members of the Disciplinary Committee are not unanimous as to any
finding, penalty or other matter, the decision of the Disciplinary Committee
shall be that of the majority provided that, if the members are equally divided,
the decision shall be that which most favours the member.
8.15 Proceedings at the Disciplinary Committee hearing shall be governed by
these rules and by the rules of natural justice, subject to which the
Disciplinary Committee may –
(a) admit as evidence at a hearing any oral testimony or documentary exhibit
that it considers relevant to the subject matter of the proceedings and may take
notice of any fact that may be judicially noticed and of any generally
recognised scientific or technical fact information or opinion within its area
(b) make all such directions with regard to the conduct of and the procedure
at the hearing as the Disciplinary Committee considers appropriate for securing
a proper opportunity for the member to answer the case against it and otherwise
as may be just.
8.16 In conducting the hearing the Disciplinary Committee may regulate its
sittings and apply such rules on procedure and practice as it sees fit, provided
(a) the Disciplinary Committee shall act fairly and shall give the member a
reasonable opportunity to make written or oral representations, to call
witnesses and to cross- examine any witness called against him;
(b) the Disciplinary Committee may determine the issue and any penalty on the
basis of written evidence and representations if, having regard to the nature
and gravity of the matter in issue, it is satisfied that it is suitable for such
determination and the member consents to such a procedure being adopted;
(c) in determining the issue by way of oral hearing, the Disciplinary
(i) shall hear the matter in public;
(ii) shall permit the member to be represented by counsel;
(d) where the matter in issue against a member is found to be proved, the
Disciplinary Committee shall, before exercising its disciplinary powers, allow
the member, or anyone on its behalf, to address it in mitigation of penalty.
8.17 (1) The Disciplinary Committee shall cause a record to be made of the
hearing electronically or otherwise.
(2) The member is entitled to a transcription or copy of the record on
payment of the cost.
8.18 Following the conclusion of the hearing of the disciplinary proceedings,
the Disciplinary Committee shall deliver to the member, GASCI and each person
who appeared as a witness at the hearing, a written decision comprising a
summary of –
(a) the charges admitted;
(b) its finding of fact;
(c) its findings, with a statement of its reasons, as to whether any charges not admitted are proved; and
(d) any penalties and order for costs imposed.
8.19 (1) The Disciplinary Committee may order the member to pay costs as it
thinks fit, including any costs which in the view of the Disciplinary Committee,
regardless of the outcome of the proceedings, have been unnecessarily caused.
(2) Costs awarded shall be payable within 15 days of the written notice of
the determination of the amount or the conclusion of any appeal against that
8.20 A finding by the Disciplinary Committee that a charge is proved may be
appealed to the Council. The Council may grant a stay pending the decision of
8.21 A member may appeal to the Council against the penalty on any charge or
any award of costs on the ground that the penalty imposed or the amount awarded
8.22 Within 10 days of the service on it of the decision of the Disciplinary
Committee, the member may appeal to the Council by serving a written notice of
appeal on GASCI and the Council.
8.23 A written notice of appeal (other than in respect of costs only) shall
set out each charge relevant to the appeal, the ground or grounds of appeal in
relation to each charge and a brief statement of the matters relied on in
respect of each ground.
8.24 An appeal shall be made by the member by way of written submissions.
8.25 After considering the written submissions of the member, the Council may
confirm, reverse or vary the decision of the Disciplinary Committee and may make
any order which the Disciplinary Committee could have made.
8.26 Other than in respect of an adjudication made by the Council as a result
of a dispute between members covered by Rule 8.27 a member may seek to appeal
any decision made by the Council via the right of redress to the Court.
8.27 (a) Where a dispute involving transactions in securities arises between
members, such dispute shall be referred to the Board, and the Board shall
investigate the dispute, and shall make such order as the resolution of the
dispute as it thinks fit.
(b) The Board and each of the parties to the dispute will forthwith inform
the Council in writing of the existence of the dispute and deliver or cause to
be delivered to the other parties within twenty-four hours of such notice being
delivered to the Council, a copy of the notice given to the Council of the
(c) Where a member is aggrieved by the decision of the Board, the member may,
within fourteen days of the receipt of such decision, appeal to the Council.
(d) Where the Council adjudicates in a matter referred to it under subsection
(c) the decision of the Council will be final and no appeal shall be brought in
(e) The Council may order the payment by any party to the dispute any sum of money, including a sum to cover costs, as the justice of the case in the opinion of the Council require.