25 OCTOBER
NEW ZEALAND GAZETTE
4137

year’s subscription to the Exchange, an additional amount not exceeding a year’s subscription and, in the case of a member firm, any amount payable by a member firm to the fidelity guarantee fund during the period of the applicant’s suspension. The additional amount payable shall be applied for the general purposes of the Exchange.

(j) The Disciplinary Committee shall hear and determine any appeal by a member from the decision of a complaints committee appointed in terms of Rule 18.11(a) or from the decision of the Board made under Rule 10.22(c). Such appeal shall be by way of complete rehearing, unless the Disciplinary Committee decides otherwise.

(k) No charges against members shall be open to challenge on the grounds that the same, or substantially similar allegations, are made against one or more individual members and against a member firm with which the individual members are associated. Charges against a member firm may raise allegations as to conduct or omission by any natural persons employed by, or officers in, that member firm.

18.5 Notice of hearing: The Disciplinary Committee shall give at least 10 days’ notice in writing (or such lesser period as may be agreed upon by the parties concerned) to the member against whom a charge has been made, specifying the nature of such charge and the date, place and time of the meeting of the Disciplinary Committee called to consider that matter. Such notice shall be deemed to have been received by the member on the day of delivery or of facsimile transmission to the principal stockbroking office of the member or its member firm, as the case may be, or three days after posting to such office.

18.6 Procedure:

(a) Except as otherwise provided in these Rules, the Disciplinary Committee shall regulate its own procedure.

(b) The Disciplinary Committee may require evidence to be given either orally or in writing and may require any evidence to be verified by statutory declaration.

(c) The chairman of the Disciplinary Committee may require that any oral evidence be received only after the witness has taken an appropriate oath or affirmation.

(d) At any hearing of the Disciplinary Committee, a member charged shall be given all reasonable opportunity of being heard and shall be entitled to be represented by counsel if such member so chooses.

(e) The Disciplinary Committee shall provide a written summary of its reasons for any decision it makes in determining a charge against a member and its choice of any penalty imposed.

18.7 Statement of findings:

(a) The Disciplinary Committee shall forward to the Board the written summary of reasons required under Rule 18.6(e).

(b) The Board shall prepare a statement of the circumstances preliminary to the hearing of any complaint and the findings of the Disciplinary Committee on every charge and the penalty (if any) imposed.

(c) The statement prepared in terms of Rule 18.7(b) shall identify the defendant member by name (unless no findings adverse to the member have been made, in which case the Board shall, at its discretion, decide whether to identify the member charged) and shall be made available by the Board to members only or generally following the expiry of the appeal period specified in Rule 18.11(k). In each case where a member or other complainant (rather than the Board) made the complaint resulting in the charges, that member or complainant shall be provided with a copy of the statement of findings prepared in terms of Rule 18.7(b).

18.8 Penalties: If, after hearing any charge, the Disciplinary Committee finds that the member has been guilty of a breach of any Rule, including failure to observe good stockbroking practice, or of any act, matter or thing detrimental to the well-being or proper conduct of the Exchange, it may, if it thinks fit, do one or more of the following things:

(a) Expel the member from membership; or

(b) Suspend the member for a stated period; or

(c) Order the member to pay to the Exchange, within a specified time, a sum by way of penalty not exceeding $100,000 for an individual member or $1,000,000 for a member firm, plus GST or any other applicable tax; or

(d) Censure the member.

18.9 Costs and expenses:

(a) After hearing any charge or application, the Disciplinary Committee may at its discretion make an order as to costs, including:

(i) the costs and expenses of and incidental to any investigation or hearing; and

(ii) the legal costs of the Exchange, whether in relation to the proceedings before the Disciplinary Committee or in prior proceedings before a complaints committee appointed in terms of Rule 18.11(a). All witnesses’ expenses shall be paid by the Exchange and shall be recoverable in terms of any order that the Disciplinary Committee may make in relation thereto.

(b) Every person (other than a member or an officer or employee of a member firm) who gives evidence or attends to give evidence at a hearing by the Disciplinary Committee shall be entitled to reimbursement for his proper travelling expenses.

(c) Every person (whether or not a member) who gives evidence or attends to give evidence at a hearing by the Disciplinary Committee, may, at the discretion of the Committee, be paid such as the Disciplinary Committee may determine for travelling and other expenses including time spent giving evidence or attending the hearing.

18.10 Failure to pay costs or attend:

(a) Any member who fails within the time stated in any order of the Disciplinary Committee to pay any sum ordered to be paid by way of penalty or costs or expenses may be suspended by the Board until such sum is paid. Should any part of the sum remain unpaid for one month following the date of suspension, in the absence of any circumstance which in the opinion of the Board provides reasonable and substantial justification for such failure to pay, the Board may thereafter, at its complete discretion, expel the member promptly.

(b) Every member commits a breach of these Rules who without lawful justification refuses or fails:

(i) to attend and give evidence when required to do so by the Disciplinary Committee; or

(ii) to answer truly and fully any question put to him by a member of the Disciplinary Committee; or

(iii) to produce to the Disciplinary Committee any