Upon receipt of an investigation report recommending that procedures of a disciplinary nature be undertaken, the Exchange may serve an originating notice to an approved participant, an approved person or a restricted trading permit holder.
The respondent must file a reply, in accordance with article 4152 of the Rules of the Exchange, within ten (10) business days following the date on which the originating notice was served.
In accordance with articles 4201 to 4207 of the Rules of the Exchange, a settlement offer may also be presented at anytime by the respondent. Unless the imposed sanction consists of a reprimand, a fine not exceeding $5,000, the requirement to retake one ore more courses given by the CSI Global Education Inc. or any other course deemed to be appropriate, or a combination of these three sanctions, the offer must be approved by the Disciplinary Committee, failing which the file shall be subject to a hearing.
In accordance with articles 4251 and following of the Rules of the Exchange, a decision rendered by the Disciplinary Committee of the Exchange may be appealed to the Special Committee — Regulatory Division within ten (10) business days from the date the decision was served.
Any decision rendered on this instance by the Special Committee of the Regulatory Division may be appealed to the Bureau de décision et de révision en valeurs mobilières (BDRVM), within thirty (30) days.
Equally, any final decision rendered by the BDRVM may be appealed to the Court of Québec, if a notice to this effect has been filed within thirty (30) days from the date on which the decision was rendered.
In accordance to articles 4102 and 4103 of the rules of the Exchange, the Disciplinary Committee is comprised of three (3) persons, named by the Vice-President, Legal Affairs (Derivatives):
- two (2) persons who are either directors, officers or partners of approved participants; or who are retired from the securities industry and who were previously directors, officers or partners of an approved participant; or members of the Special Committee of the Regulatory Division
- one (1) person who is related neither to an approved participant, nor to the Exchange.