✨ Stock Exchange Association Rules
- Procedure - Members—Disputes between members of
different exchanges shall be referred to the arbitrament of the
committee of another exchange (being a metropolitan ex-
change). The appointment of the exchange to act as arbi-
trator is to be agreed upon by the exchanges concerned in the
dispute; failing such agreement, the arbitrating exchange shall
be nominated by the President of the Association. - Procedure - Exchanges—A dispute between any two
exchanges or between one exchange and a member of another
exchange shall be referred to the committee of the Association. - No Appeal—No right of appeal shall lie against the
determination of a local committee, in respect of any dispute. - Members Concerned or Implicated—No member of the
committee or of a local committee who is concerned or
implicated in or whose firm or exchange is concerned or
implicated in any complaint, charge, or dispute shall be
eligible to attend any meeting of the committee or local com-
mittee as the case may be called to deal with such complaint,
charge, or dispute. No member of the committee shall be
eligible to attend any meeting of the committee called to hear
an appeal against the decision of a local committee on a
complaint or charge if he adjudicated on the local committee
in respect thereof. - Penalties—If the committee or local committee as the
case may be shall find any complaint or charge to have been
proved such committee may:
In the case of an exchange:
(i) Suspend such exchange for such time as such com-
mittee shall think fit; or
(ii) Expel the exchange from membership of the Associa-
tion; or
(iii) Levy a fine on such exchange not exceeding a sum
equal to £5 for each member of the exchange, but
in no case shall the amount of the fine exceed £200.
In the case of a member:
(i) Suspend such member from membership of his ex-
change for such time as such committee shall
think fit; or
(ii) Expel such member from membership of his
exchange; or
(iii) Levy a fine on such member not exceeding the sum of
£200;
provided that nothing in the foregoing shall prevent any
exchange by its rules prescribing penalties for breach by its
members of these rules different from those prescribed above,
but this proviso shall not be deemed to limit in any way the
duties and obligations of exchanges as prescribed by rule 69
hereof. - Statement of Findings—The committee or local com-
mittee as the case may be may prepare and circulate to
members or to such members as it thinks fit a statement of
its findings on any complaint, charge, or dispute and the
penalty (if any) imposed. - The committee or local committee as the case may be
may make such order as it considers fit regarding the payment
of costs of the hearing of any complaint, charge, or dispute. - Transfer Three Months Old—The committee or local
committee may refuse to adjudicate upon any claim by a pur-
chasing member in respect of any transfer that has not been
lodged for registration within three months from the date of
delivery to the said purchasing member. - Complaints or Charges by Non-members—It shall not
be incumbent upon a local committee to entertain any com-
plaint or charge submitted by a non-member against a member
unless such member shall have been employed by the com-
plainant and in that or any other case in which a non-
member desires the intervention of the local committee, he
shall, previously to the case being heard, submit a statement in
writing of such complaint.
ENFORCEMENT OF RULING - Enforcement of Ruling—Where the committee gives any
ruling, award, or decision within the powers conferred by
these rules such award, ruling, or decision shall be carried
into effect by any exchange concerned to the full extent
directed by the committee and without in any way limiting the
foregoing, each exchange shall, upon the direction of the
committee, expel or suspend any of its members or collect
from any of its members any fine or penalty directed by the
committee to be collected from any of its members. - Actions—It shall be a condition, precedent to the com-
mencement of any action by a member against any other
member upon any matter arising out of any transaction of
stockbroking or out of any transaction to which these rules
apply, that the dispute shall be first determined in the manner
provided by these rules and thereafter action shall be com-
menced only for the enforcement of the decision given under
these rules and then only after the member sued shall have,
after 14 days’ notice in writing, refused or neglected to carry
out such decision. In any action as aforesaid no member shall
dispute the correctness of such decision or award, or the fact
that it was given in accordance with these rules.
DEFAULTING MEMBERS - Member Deemed to be a Defaulter—A member of an
exchange shall be deemed to be a defaulter in each or the
following cases:
(i) Where he is so declared by the chairman of his
exchange in accordance with rule 120 (xv).
(ii) Where, in the opinion of his local committee, he is in
difficulties and has failed or is likely to fail to
meet his liabilities.
(iii) Where he has committed an act of bankruptcy or has
become bankrupt or is insolvent or has called a
meeting of his creditors or made a composition
with his creditors or assigned his estate for the
benefit of his creditors.
(iv) Where, in the opinion of his local committee, any
other circumstances justify such member being so
declared. - Dealing With Members in Default—The committee may
declare any member a defaulter and may suspend such mem-
ber from membership of his exchange for such time as it
shall think fit. The committee may alternatively require the
exchange whereof he is a member to declare such member
a defaulter and may also require an exchange a member
whereof is in default to deal with such member in accordance
with the rules of such exchange. - Member Failing to Meet Engagements—In any case
where it comes to the knowledge of a member that another
member of any exchange has failed to meet his engagements
such member shall forthwith report the circumstances of the
case to the chairman of his own exchange who shall, if the
member reported to have failed to meet his engagements be a
member of another exchange, forthwith report the circum-
stances of the case to the chairman of that exchange. Failure
to so report such circumstances shall be deemed to be a breach
of these rules. - The chairman of an exchange upon receiving a report
that a member of his exchange has failed to meet his engage-
ments, shall immediately cause an investigation of the matter
to be made, and shall simultaneously advise the chairman of
all other exchanges that the affairs of such member are under
investigation. He shall similarly advise the result of such
investigation when completed. - Inquiries Regarding Members—Where any inquiries
as to the credit or position of any member of an exchange
are being made by any exchange or by the Association every
other exchange shall on request facilitate such inquiries and
make all necessary inquiries into dealings of its members with
the member whose position is being investigated as aforesaid.
MEMBERS' BOOKS OF ACCOUNT AND RECORDS - Members shall keep books and records for the purpose
of recording their transactions in a form that will enable an
auditor to supply the information required by rule No. 78
relating to the audit of members' books.
The committee regard the following books and records as
sufficient for the purpose of this rule:
(1) Bought and sold books, in which must be recorded the
name of the buyer and seller respectively of every transaction.
(2) Cash book, in which must be entered every amount
paid or received.
(3) Journal or system of books fulfilling the function.
(4) Scrip register, in which shall be entered all securities
coming into the office, and showing disposal of same.
(5) Ledger or ledgers, showing transactions:
(i) With clients;
(ii) With brokers;
(iii) In respect of nominal or person accounts. - Production of Books, etc.—The committee of an ex-
change, in addition to the powers conferred by rule 55, shall
have full and absolute power at any time to call upon any
member to produce forthwith, for inspection by themselves
or their duly appointed representatives, all books, letters,
telegrams, or copies thereof, and other documents relating to
his business of a sharebroker; and they may also require
members and their clerks to appear before the committee or
their duly appointed representatives at any time, and to give
such information as may be required in connection with such
business.
AUDIT OF MEMBERS' BOOKS - When notified by the committee of his exchange, a mem-
ber shall, within the time specified in such notification, supply
to the chairman a certificate of audit and report from a
practising public accountant who, failing appointment by
mutual consent between the member and the committee, may
be appointed by the committee at the expense of the member.
The certificate and report shall deal with the following finan-
cial matters:
(1) Balance date.
(2) Have all books and records required for the purpose of
this certificate been regularly and properly kept?
(3) Have any securities held for safe custody been pledged
in any way?
(4) Were all securities held for safe custody examined?
(5) If clients are financed, does the market value of the
securities held cover the amount of the advance in each case?
(6) Were all securities lodged by the clients for sale and
securities purchased for clients and paid for by them held
unencumbered?
(7) Did the market value of assets (excluding value of seat)
as shown by the books, exceed the member's commitments
at balance date?
(8) Were the assets taken into account readily realisable?
(9) Does the statement of assets include private assets not
usually included with business assets?
(10) Are there any contingent liabilities, and, if so, of
what amount? (Note—Under this heading a full report must
be furnished of any over-sold position.)
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1960, No 36
NZLII —
NZ Gazette 1960, No 36
✨ LLM interpretation of page content
🏭
Stock Exchange Association of New Zealand Rules
(continued from previous page)
🏭 Trade, Customs & IndustryStock exchange, Association rules, Dispute resolution, Penalties, Enforcement, Defaulting members, Audit requirements, Member conduct, Financial records, Books of account, Committee procedures