Disciplinary Tribunal

Timely and transparent enforcement activity has a beneficial impact on market behaviour and maintains investor confidence in ASX's ability to monitor and enforce its Rules.  One of the mechanisms by which it achieves this is through the Disciplinary Tribunal process.

The Disciplinary Tribunal (and the Appeal Tribunal), through a process of peer review, hears and determines alleged contraventions of ASX's Operating Rules and allegations of unprofessional conduct by brokers or broking firms.  Where an alleged contravention of ASX's Rules is proven, the Tribunal can impose a wide range of penalties.  ASX Market Rules 28.3.2 and 28.3.7 (PDF 221KB) (and the corresponding ASTC Settlement and ACH Clearing Rules) set out the powers that can be exercised by the Tribunal.

This section contains the following:

Function and operation of the Disciplinary Tribunal

The Disciplinary Tribunal is a body created under the ASX Market Rules and pursuant to powers delegated by the Board of ASX.  Although constituted under the ASX Market Rules, the Tribunal is independent of ASX.

The Disciplinary Tribunal is vested with the responsibility of determining, through a process of peer review, disciplinary proceedings in relation to alleged contraventions of ASX's Market Rules and/or in respect of allegations of unprofessional conduct. 

The Disciplinary Tribunal is similarly provided for and established to determine disciplinary matters under both the ASTC Settlement Rules (previously the SCH Business Rules) and the ACH Clearing Rules. 

There is a right of appeal to the Appeal Tribunal against decisions of the Disciplinary Tribunal provided for under ASX's Rules.

Structure of the Tribunal

The Tribunal operates independently of ASX executive management and is supported by an ASX legal counsel.  The Tribunal is comprised of a panel of industry professionals nominated by ASX (“the Panel”).  The panel members are selected according to a range of criteria that relate to their skills, experience and qualifications.

As at 30 July 2007, the Panel (PDF 41KB) was comprised of 33 members, although the Rules only require a minimum of 10 members.

The chairperson of the Disciplinary Tribunal is Mr Philip Chisholm. The chairperson of the Appeal Tribunal is Mr Michael Pembroke SC.

Determinations and sanction

Disciplinary proceedings before the Disciplinary Tribunal are instigated by ASX, ASTC or ACH through ASX Markets Supervision's Enforcement Unit following investigation by ASX Markets Supervision's Investigations. The broker or broking firm concerned is entitled to be heard in respect of any allegations made concerning contraventions of ASX's Rules in the course of disciplinary proceedings.

ASX Market Rules Guidance Note 10 “Disciplinary Proceedings” (PDF 120KB) (and corresponding ASTC and ACH Guidance Notes) provides an overview of the procedures followed in respect of disciplinary proceedings.

The Disciplinary Tribunal hears and determines alleged contraventions of ASX’s Rules.  Where the Disciplinary Tribunal finds that a contravention is proven, it may impose a variety of sanctions including censure, suspension, an undertaking to complete education and compliance programs, and fines of up to $250,000.

The Tribunal heard and determined 24 matters in the financial year 2006/2007.  Fines totaling $410,000 (plus GST) were imposed by the Tribunal.

Details of the Tribunal's determinations are set out in disciplinary circulars, notices and bulletins.

Disciplinary matters

ASX releases Participant circulars, bulletins and notices setting out details of the Disciplinary Tribunal's determinations concerning its Participants.  The table only contains links to circulars that were released after 1 June 2001.  For access to circulars that were released prior to 1 June 2001, please contact Jodie Maurer, the ASX Legal Counsel assisting the Tribunals on (02) 9227 0472.

Code of ethics

The Disciplinary Tribunal is established on the fundamental standards and values incorporated in a Code of Ethics (PDF 35KB).  It is imperative for the integrity of the Tribunal and the process of peer review that Tribunal members ensure that the principles outlined in this Code - such as fairness, independence, accountability, and the handling of conflicts of interest - are adhered to.

Tribunal education

ASX provides a program of education to ensure that Disciplinary Tribunal panel members nationwide are kept up-to-date with the Tribunal's principles, procedures and activities.