11.3A Composition by CDP
CDP may make an offer of composition to a Clearing Member who has breached any Clearing Rule. The terms of the offer of composition include payment of a specified sum to CDP and may include the fulfillment of any accompanying terms that CDP may prescribe.
Upon payment of the specified sum and fulfillment of the accompanying terms within the stipulated time, no further proceedings shall be taken against that Clearing Member for that Rule violation.
Acceptance of the offer of composition by the Clearing Member amounts to an admission of liability and the Clearing Member will be deemed to have committed the conduct described in the charge.
In respect of Rule violations which CDP may offer composition, guidelines on the range of composition which CDP may offer to a Clearing Member who has committed a Rule violation are indicated in Schedule A.
CDP retains the discretion to offer composition to a Clearing Member of an amount which is lower or higher than the guidelines, except that the amount of composition that CDP may offer shall not exceed S$10,000 for each Rule violation.
Notwithstanding that a Rule violation is indicated as being compoundable or may be compoundable under Schedule A, CDP retains the discretion not to make an offer of composition to the Clearing Member and instead, to charge the said Clearing Member before the Disciplinary Committee.
If CDP has made an offer of composition, it will not commence disciplinary proceedings against a Clearing Member until after the stipulated period for the offer lapses.