4138

NEW ZEALAND GAZETTE

No. 156

book, tape, document, paper or other record required of him.

18.11 Complaints committee:

(a) The Board or its delegates shall have the power to appoint one or more complaints committees, either on a standing basis or to consider a particular matter, to investigate and consider complaints which, in the opinion of the Board or its delegates, are neither frivolous nor requiring the attention of the Disciplinary Committee.

(b) A complaints committee shall consist of a minimum of one individual full member who shall not be a member either of the Board or of the Disciplinary Committee, and shall hear any reasonable charge or complaint made against any member of the Exchange. Every person appointed as a member to a complaints committee under the rules of the Exchange in force immediately prior to the coming into force of these Rules shall continue in office in accordance with the terms of his appointment.

(c) Where any member of a complaints committee is unable to act because of absence or because he or his member firm is concerned or implicated in a charge, then the Board shall, if necessary, appoint another member in his place to consider and hear the particular charge.

(d) The following rules relating to the Disciplinary Committee shall, mutatis mutandis and with the exceptions stated in this Rule 18.11(d), apply to a complaints committee:

(i) Rule 18.3(a) as to members’ interests;

(ii) Rules 18.4(b) as to evidence;

(iii) Rule 18.5 as to notice of hearing, except that the period shall be five business days and a complaints committee may deal with the matter on consideration of the evidence submitted and without giving a date, time or place of hearing;

(iv) Rule 18.6 as to procedure, except that representation by counsel shall not be permitted without the consent of all parties;

(v) Rule 18.7 as to statement of findings, except that the summary referred to in Rule 18.7(a) may be provided to the Board in a summary of findings in respect of matters heard by the complaints committee over a period of up to six months, and a summary statement of findings subsequently prepared by the Board need not, at the discretion of the Board, identify each defendant member. The preliminary statement referred to in Rule 18.7(b) need not be provided in order for a complaints committee to consider a complaint;

(vi) Rule 18.8 as to penalties, except that a complaints committee may not suspend or expel a member nor may it impose any fine exceeding $20,000, plus GST or any other applicable tax, in respect of any one charge;

(vii) Rule 18.9 as to costs and expenses; and

(viii) Rule 18.10 as to failure to pay costs or attend, subject to a member’s rights to appeal a finding.

(e) Where a complaints committee decides that the member in question has no case to answer, then the complainant shall be so informed and a written report of the findings given to both the chairman and the independent member of the Disciplinary Committee.

(f) A complaints committee shall have the power to employ legal assistance.

(g) A complaints committee may decline either to hear or to continue hearing a charge and instead refer it to the Disciplinary Committee.

(h) A complaints committee may also resolve after hearing a charge that its powers as to penalties are not sufficient and refer the matter to the Disciplinary Committee.

(i) The Disciplinary Committee in respect of any charge referred to it in terms of Rules 18.11(g) or 18.11(h) shall have the discretion to rehear any or all matters previously heard by a complaints committee.

(j) In terms of Rule 18.4(j), there shall be a right of appeal to the Disciplinary Committee against the findings of a complaints committee with regard to findings and penalties (including the amount of costs).

(k) Any appeal made in terms of Rule 18.11(j) shall be in writing and shall be lodged with the Managing Director not later than 10 days after the member concerned has been given written notice (in the same manner as provided for under Rule 18.5) of the findings of the complaints committee.

(l) A member may appeal against a penalty (but not a finding) of a complaints committee to another complaints committee, composed of a different member or members. In respect of any such appeal, the outcome of the appeal including any increase or decrease in penalties (up to a maximum of $20,000, plus GST or any other applicable tax, in respect of any one charge) or costs, shall be binding on the member. The appeal shall represent a waiver by that member of any further right to appeal to the Disciplinary Committee.

19. Disputes

19.1 Disputes between members referred to Board: All disputes between members shall be referred for determination to a director of the Board who shall act as arbitrator.

19.2 If a director of the Board is unable or unwilling to act: Where no director of the Board is able or willing to act as arbitrator in a dispute, the Board shall nominate an individual full member (not being a director) to act as arbitrator.

19.3 Determination final: Any determination under Rules 19.1 or 19.2 shall be final and binding on the members in dispute.

19.4 Hearing of disputes: The provisions of Rule 18.3 shall mutatis mutandis apply to hearings of disputes as if references in Rule 18.3 to the Disciplinary Committee were references to the Board, a director of the Board or any individual full member appointed under Rule 19.2, as the case may be.

19.5 Statement of findings: The Board, a director of the Board or any other individual full member appointed under Rule 19.2, 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 dispute.

19.6 Orders for costs: The Board, a director of the Board or any other individual full member appointed under Rule 19.2, as the case may be, may make such order as it considers fit regarding the payment of costs of the hearing of any dispute.

19.7 Condition precedent to court action: It shall be a condition precedent to the commencement of any action by a member against any other member in respect of any stockbroking transaction or any transaction to which any Rule applies, that the dispute shall be first determined in the manner provided by these Rules, and thereafter action shall be commenced only for the enforcement of the decision given under these Rules and then only after the