Monetary Sanction Reduction Mechanism for Disciplinary Cases

1. Introduction

With effect from 1 January 2026, to encourage licensees to take responsibility for their conduct and to admit their allegation(s) at the earliest stage of the disciplinary proceedings, the Disciplinary Committee may consider granting a reduction in monetary sanctions (“Reduction Mechanism”) to non-compliant licensees who have not previously been disciplined for a similar breach, admit the allegation(s) against them, and agree to the summary of facts before the commencement of the full inquiry hearing (“Full IH”), where applicable.

For the avoidance of doubt, the Reduction Mechanism does not apply to repeated breaches, nor to non-monetary sanctions.

2. The Reduction Mechanism at Different Stages of the Proceedings

All discounted fines would be rounded up to the nearest hundred dollars.

3. Details of the Reduction Mechanism

1. For Document-based Inquiry Hearing (“Document-based IH”) Procedure:

1. If, in the opinion of the Disciplinary Committee, a Document-based IH is justifiable, having regard to the factual matrix and gravity of a particular case, the EAA will issue the Document-based IH Proposal Letter, inviting the licensee alleged to have contravened the regulatory requirements concerned to admit the allegation(s) and agree to the summary of facts of the allegation(s).

2. If the licensee admits the allegation(s), agrees to the summary of facts, and returns to the EAA the Letter of Consent to Document-based Inquiry Hearing duly signed in accordance with the terms set out therein within 14 days from the date of the Document-based IH Proposal Letter, a Stage 1 reduction of the monetary sanction(s) will be recommended to the Disciplinary Committee.

3. If the allegation(s) is/are not admitted and the summary of facts is/are not agreed at Stage 1, a Full IH will be scheduled. Thereafter, should the licensee notify the EAA in writing that he admits the allegation(s) and agrees to the summary of facts between the 15^th day from the date of the Document-based IH Proposal Letter and the day immediately preceding the Full IH, a Stage 2 reduction of the monetary sanction(s) will be recommended to the Disciplinary Committee.

4. If the licensee notifies the EAA that he admits the allegation(s) and agrees to the summary of facts on the day of the Full IH and prior to the start of the Full IH, a Stage 3 reduction of the monetary sanction(s) will be recommended to the Disciplinary Committee.

2. For Full IH Procedure:

1. Where in the opinion of the Disciplinary Committee that a Full IH shall be conducted instead of a Document-based IH in light of the factual matrix and gravity of a particular case, the Disciplinary Committee shall fix a date for the hearing and, a Notice of Hearing specifying the date, time and place of the hearing will be served on the licensee alleged to have contravened the regulatory requirements concerned pursuant to the Proceedings Rules on Inquiry Hearings.

2. If the licensee notifies the EAA in writing that he admits the allegation(s) and agrees to the summary of facts within 14 days from the date of the Notice of Hearing, a Stage 1 reduction of the monetary sanction(s) will be recommended to the Disciplinary Committee.

3. If the allegation(s) is/are not admitted and the summary of facts is/are not agreed at Stage 1, thereafter, should the licensee notify the EAA in writing that he admits the allegation(s) and agrees to the summary of facts between the 15^th day from the date of the Notice of Hearing and the day immediately preceding the Full IH, a Stage 2 reduction of the monetary sanction(s) will be recommended to the Disciplinary Committee.

4. If the licensee notifies the EAA that he admits the allegation(s) and agrees to the summary of facts on the day of the Full IH and prior to the start of the Full IH, a Stage 3 reduction of the monetary sanction(s) will be recommended to the Disciplinary Committee.

Note:

The Reduction Mechanism mentioned above shall not be construed as an automatic or guaranteed right for the licensees. The final decision rests solely with the Disciplinary Committee, which retains the full discretion to determine whether a breach is repetitive and whether any reduction of the monetary sanction(s) is/are appropriate in light of the specific facts and circumstances of the case concerned.