Since 2011, the Department’s investigators are also authorized to conduct administrative inquiry proceedings.
The purpose of the administrative process is to streamline enforcement procedures, reduce the time between the commission of a violation and the imposition of a penalty that is commensurate with the severity of the offense.
Contrary to criminal offenses, administrative offenses require no proof of men rea, but only proof of negligence or are defined as strict liability offenses.
Criminal Investigation or Administrative Enforcement?
Criteria for initiating a criminal investigation or, according to the relevant provisions of Chapter 10 of the Securities Law or an administrative enforcement procedure under Chapter 8 of the Securities Law:
1. The severity of the act or omission and its circumstances.
2. An assessment of the nature and preponderance of the evidence.
3. The ISA’s enforcement policy.