What can SFC do to someone who breaches SFC code and guidelines?

What can SFC do to someone who breaches SFC code and guidelines?

• A. Imprison them
• B. Revoke, reprimand and fine; but not jail
• C. Suspend for 30 days only
• D. Issue a warning letter only

Answer: (B)

The key idea is how SFC disciplines licensed persons and firms. When someone breaches SFC codes and guidelines, the authority can impose civil/administrative sanctions such as revoking or suspending a license, issuing a reprimand, or imposing a fine. These are disciplinary measures designed to regulate conduct and maintain market integrity. Imprisonment, however, is a criminal penalty and is not within the SFC’s power to impose directly. If there’s criminal wrongdoing, the matter may be referred to the public prosecutor for court action, where imprisonment could be a possibility.

The key idea is how SFC disciplines licensed persons and firms. When someone breaches SFC codes and guidelines, the authority can impose civil/administrative sanctions such as revoking or suspending a license, issuing a reprimand, or imposing a fine. These are disciplinary measures designed to regulate conduct and maintain market integrity. Imprisonment, however, is a criminal penalty and is not within the SFC’s power to impose directly. If there’s criminal wrongdoing, the matter may be referred to the public prosecutor for court action, where imprisonment could be a possibility.