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Rules of Procedure | Part F: Monitor

[Pursuant to Sections 20 (Disciplinary Hearings), 24.1 (Power of Hearing Panels to Discipline), 24.3 (Applications in Exceptional Circumstances), 24.4 (Settlement Agreements) and 24.7 (Monitor) of MFDA By-law No.1]

RULE 26: APPOINTMENT OF MONITOR

26.1  Factors to Consider for Appointment of a Monitor

  1. In exercising its discretion to appoint a monitor, a Panel may consider:
    1. the harm or potential harm to the investing public;
    2. the financial solvency of the Member;
    3. the adequacy of the Member’s internal controls and operating procedures;
    4. the failure of the Member to respond to requests by the Corporation to address deficiencies in its internal controls and operating procedures;
    5. the failure of the Member to comply with any agreement with the Corporation;
    6. the Member’s ability to maintain regulatory capital requirements;
    7. any previous suspension of the Member for failing to meet regulatory capital requirements;
    8. regulatory history of Member or key persons at Member;
    9. the costs to the Member associated with the appointment of the monitor; and
    10. any other relevant factors.

26.2  Terms, Conditions and Costs

  1. In exercising its discretion to appoint a monitor, a Panel shall:
    1. appoint a monitor on such terms as it considers appropriate; and
    2. require that the Member pay the whole or part of the expenses related to a monitor.