Podcast
Questions and Answers
What must occur before the Commission can take disciplinary action against a member of a securities exchange?
What must occur before the Commission can take disciplinary action against a member of a securities exchange?
- The Commission must act independently of the exchange.
- The Commission must obtain approval from the High Court.
- The member and the exchange must be given an opportunity to be heard. (correct)
- The member must request an internal review.
Who is eligible to appeal a decision made by the Commission?
Who is eligible to appeal a decision made by the Commission?
- The securities exchange itself.
- Members of the public interested in the case.
- Any member of the securities exchange.
- A person aggrieved by the Commission's decision. (correct)
What is the consequence for a securities exchange that refuses to comply with a directive issued by the Commission?
What is the consequence for a securities exchange that refuses to comply with a directive issued by the Commission?
- The directors of the exchange will face criminal charges.
- The exchange will lose its official listing.
- The securities exchange must cease all trading activities.
- The securities exchange may have to pay administrative penalties. (correct)
Which of the following is NOT an obligation of a person associated with a body corporate admitted to a securities exchange's official list?
Which of the following is NOT an obligation of a person associated with a body corporate admitted to a securities exchange's official list?
In what scenario may the Commission issue a directive to a securities exchange?
In what scenario may the Commission issue a directive to a securities exchange?
What type of order may the court issue to enforce compliance with securities exchange rules?
What type of order may the court issue to enforce compliance with securities exchange rules?
What is the daily penalty for a securities exchange that continues to refuse compliance with a directive?
What is the daily penalty for a securities exchange that continues to refuse compliance with a directive?
Which of the following best describes the role of the Commission regarding an exchange's operations?
Which of the following best describes the role of the Commission regarding an exchange's operations?
Under what circumstances may the Commission direct the removal of an executive officer from a securities exchange?
Under what circumstances may the Commission direct the removal of an executive officer from a securities exchange?
What is a possible consequence for a securities exchange that allows trading in contravention of a notice from the Commission?
What is a possible consequence for a securities exchange that allows trading in contravention of a notice from the Commission?
What is the minimum period for which records must be kept after the completion of the relevant transaction?
What is the minimum period for which records must be kept after the completion of the relevant transaction?
How long can the Commission prohibit trading in particular securities according to the notice it issues?
How long can the Commission prohibit trading in particular securities according to the notice it issues?
What is the administrative penalty for failing to keep records for the required period?
What is the administrative penalty for failing to keep records for the required period?
Under what condition is a copy or extract from a book admissible in evidence?
Under what condition is a copy or extract from a book admissible in evidence?
What must the Commission do concurrently when it gives a notice to a securities exchange to prohibit trading?
What must the Commission do concurrently when it gives a notice to a securities exchange to prohibit trading?
Which of the following is NOT a condition under which the Commission may issue a notice to prohibit trading?
Which of the following is NOT a condition under which the Commission may issue a notice to prohibit trading?
Which of the following individuals is NOT compelled to produce evidence of privileged communication?
Which of the following individuals is NOT compelled to produce evidence of privileged communication?
What opportunity must be afforded to an executive officer before the Commission takes action against them?
What opportunity must be afforded to an executive officer before the Commission takes action against them?
What information might the Commission require from a broker-dealer in relation to securities transactions?
What information might the Commission require from a broker-dealer in relation to securities transactions?
Which of the following actions could lead to an executive officer facing censure from the Commission?
Which of the following actions could lead to an executive officer facing censure from the Commission?
What qualifies as a broker-dealer according to the content?
What qualifies as a broker-dealer according to the content?
Which method is NOT acceptable for proving that a copy or extract is a true representation of a book?
Which method is NOT acceptable for proving that a copy or extract is a true representation of a book?
What must be included in the notice issued by the Commission to prohibit trading in particular securities?
What must be included in the notice issued by the Commission to prohibit trading in particular securities?
Which of the following parts of the Act specifically does NOT compel legal practitioners regarding privileged documents?
Which of the following parts of the Act specifically does NOT compel legal practitioners regarding privileged documents?
What action may the Commission take in the event of non-production of required books?
What action may the Commission take in the event of non-production of required books?
Which of the following is NOT a right of the person receiving the books under section 25?
Which of the following is NOT a right of the person receiving the books under section 25?
What may result from a search authorized by the Commission?
What may result from a search authorized by the Commission?
Which statement correctly describes the Commission's authority regarding body corporates?
Which statement correctly describes the Commission's authority regarding body corporates?
When the Commission retains possession of the books under section 25, for what purpose can it do so?
When the Commission retains possession of the books under section 25, for what purpose can it do so?
What must the officer of the body corporate do if they cannot produce the required books?
What must the officer of the body corporate do if they cannot produce the required books?
Under section 26, which of the following actions is authorized during a search conducted by the Commission?
Under section 26, which of the following actions is authorized during a search conducted by the Commission?
What is one potential consequence of a violation discovered by the Commission during a search?
What is one potential consequence of a violation discovered by the Commission during a search?
What is defined as an approved trading facility under the Act?
What is defined as an approved trading facility under the Act?
Which entity is not eligible for approval to operate as a securities exchange?
Which entity is not eligible for approval to operate as a securities exchange?
What is one of the conditions for the approval of a body corporate as a securities exchange?
What is one of the conditions for the approval of a body corporate as a securities exchange?
Which of the following must a body corporate provide for in its rules to gain approval as a securities exchange?
Which of the following must a body corporate provide for in its rules to gain approval as a securities exchange?
What is a requirement regarding the members of the governing body of a securities exchange?
What is a requirement regarding the members of the governing body of a securities exchange?
Why does the Commission need to be convinced before granting approval to a securities exchange?
Why does the Commission need to be convinced before granting approval to a securities exchange?
What function must the body corporate perform regarding membership applications?
What function must the body corporate perform regarding membership applications?
Which of the following is NOT a provision that must be included in the rules of a body corporate seeking approval as a securities exchange?
Which of the following is NOT a provision that must be included in the rules of a body corporate seeking approval as a securities exchange?
Study Notes
Powers and Actions of the Commission
- A power to require information extends to officers of a body corporate, even if dissolved or in the process of winding up.
- The Commission can publish information obtained through its powers.
Action on Production of Books
- Required books can be possessed, copied, or extracted by the Commission.
- The Commission can demand explanations from individuals involved in the compilation of the books.
- Books can be retained for necessary inspection by the Commission.
- Access to the books must be allowed upon reasonable notice and specification.
Non-Production of Books
- If books aren’t produced, the Commission may require an explanation for absence, including their whereabouts and previous custody.
Searches by the Commission
- Authorized personnel can search premises suspected of non-compliance with the law.
- The Commission can seize or copy relevant documents during searches.
- Personnel can interrogate associated individuals present at the business location.
- Business operations may be halted if necessary, and the Police may assist in these activities.
Enforcement of Securities Exchange Rules
- Failure to comply with securities exchange rules can lead to court-ordered directives for compliance.
- Bodies corporate and associated individuals are obligated to adhere to the rules of their respective exchanges.
Directives to Securities Exchanges
- The Commission can issue directives to exchanges regarding operational procedures in the public interest.
- Non-compliance by an exchange may result in administrative penalties.
- Executive officers of an exchange may be directed for removal or censure based on non-compliance or misconduct.
Prohibition of Trading in Specific Securities
- The Commission can prohibit trading in specific securities to protect public interest.
- The exchange must act upon receiving notice of this prohibition, failing which trading can be stopped by the Commission.
Record Keeping Obligations
- Books and records must be maintained for a minimum of seven years post-transaction completion.
- Violations can incur substantial penalties.
Admission of Evidence
- Copies of required books are admissible as evidence if proven to be true copies.
Legal Privilege
- Legal practitioners are not compelled to produce documents containing privileged communications but must disclose their origin and ownership upon request.
Disclosure of Securities Transactions
- Broker-dealers must disclose details surrounding acquisitions or disposals of securities when requested by the Commission, safeguarding investor interests.
Definition of Securities Exchanges
- Securities exchanges refer to facilities for trading various financial instruments, including stocks and derivatives.
Approval of Securities Exchanges
- Only corporate bodies may apply for approval to operate as securities exchanges.
- An approving body must ensure requirements, such as good character and integrity of members, are met.
- The approval process includes establishing fair operational rules and public interest considerations.
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Description
This quiz explores the powers and actions of the Commission, covering information requisition from corporate officers, production and inspection of books, and the processes involved in searches. Test your knowledge on how the Commission operates and its authority in various scenarios.
