Disciplinary Procedures

Disciplinary Procedures

The Bourse may initiate proceedings against a Regulated Person under Part 4 of the Rules of the Bourse (the "Rules") for any violation thereof (Article 4.200). To do so, the Bourse must serve a Notice of Proceedings to any Regulated Person against whom it has initiated disciplinary proceedings (Article 4.202). This Notice of Proceedings must include a Disciplinary Complaint brought by the Bourse against one or more Regulated Persons.

A Regulated Person who receives a Notice of Proceedings must respond within the 20 business days following its receipt (Article 4.203).

After serving the Notice of Proceedings, the Division may negotiate, on request by the Respondent, a settlement agreement with them (Article 4.210). Provided the Division determines the Respondent is negotiating in good faith, it will accept to negotiate with a Respondent. The Division may terminate negotiations at any time at its sole discretion. Generally, any settlement agreement must be submitted to the Disciplinary Committee for acceptance (Article 4.211). If a settlement agreement is rejected, the Boursemust proceed with a hearing of the matter, unless the Division and the Respondent agree to negotiate a new settlement agreement.

Disciplinary Committee

The Disciplinary Committee hears Disciplinary Complaints submitted by the Bourse, whether or not they are the subject of a settlement agreement, against one or more Regulated Persons.

When the Division decides that a hearing before the Disciplinary Committee is necessary, the Bourse must, at least 30 business days before the hearing, serve a notice of hearing upon the Persons to whom the Notice of Proceedings was served (Article 4.301).

Hearings are usually public, except those concerning settlement agreements and pre-hearing conferences (Article 4.302).

Following a hearing, other than one regarding settlement agreements, when a Respondent is found guilty of one or more offences, the Disciplinary Committee may, with respect to each offence, impose any one or more of the sanctions or Rulings described in Article 4.400.

The Disciplinary Committee documents the reasons for its ruling, and the decision comes into effect immediately on delivery, unless indicated otherwise therein (Article 4.402). Fines, fees, or other monetary penalties are payable within 30 days of notification of the written decision imposing them. The decision is published on the Bourse's website.

Under the Québec Derivatives Act, the Division or a Respondent may submit a decision of a Disciplinary Committee for review by the Financial Markets Administrative Tribunal (Article 4.500).

Minor Violations

The Division's President may, under a process described in Chapter H of Part 4 of the Rules, choose to impose a fine not exceeding $5,000 per violation for certain violations, rather than bring a Disciplinary Complaint in accordance with Chapter C of Part 4 of the Rules. Violations subject to this process are listed in Article 4.700 of the Rules. The fines applicable for each of these violations are indicated in the List of Fines for Minor Violations.