Proceedings of the MMT
The Financial Secretary may under Section 252 institute
proceedings before the MMT in respect of any suspected market
misconduct following a report by the SFC or a referral from
the Secretary for Justice by giving notice in writing to
the MMT setting out the terms of reference for the proceedings.
The main purpose of proceedings is to determine:
-
whether any market misconduct has taken place;
-
the identity of every person involved in the market
misconduct; and
-
the amount of any profit gained or loss avoided as a
result of the market misconduct.
The MMT may identify a person as having engaged in market
misconduct if:
-
he has perpetrated any market misconduct;
-
the market misconduct was perpetrated by a corporation
of which he is an officer with his consent or connivance;
or
-
another person engaged in market misconduct and he assisted
or connived with that person in the perpetration of the
market misconduct, knowing that such conduct constitutes
or might constitute market misconduct.
The MMT makes its findings on the civil standard of proof.
It needs therefore to be satisfied that a person has engaged
in market misconduct on the balance of probabilities (rather
than beyond reasonable doubt which is the criminal standard
of proof). However, like the IDT, the MMT has powers to
receive any evidence, whether or not such evidence would
be admissible in civil or criminal proceedings. It also
has wide powers to compel the giving of evidence and to
prevent the publication of information about the evidence
the MMT receives. Significantly, a person is not excused
from complying with a requirement of the MMT to give evidence
on the ground that to do so might incriminate him (Section
253(4)) and such compelled self-incriminatory evidence may
be considered by the MMT.
