The Law stipulates a broad spectrum of sanctions for licensee violations:
- Criminal sanctions - the Law sets a series of obligations, with which non-compliance constitutes a criminal violation. For example, violations of restrictions on the holding and proprietary securities trading as well as engaging in investment advice without a license constitute criminal violations of the Law.
- Disciplinary sanctions – The Law establishes an independent disciplinary tribunal, whose job is to impose disciplinary sanctions on licensees who have violated the fiduciary duties of trust and care towards clients. The tribunal is an independent committee appointed by the Minister of Justice, which is authorized to impose sanctions on licensees including warnings, censures, fines, or the suspension or revocation of licenses.
- - Civil fines – the ISA was recently authorized to impose civil fines on licensees violating certain provisions of the Law. The ISA is also authorized to suspend or revoke licenses in administrative proceedings of licensees who have failed to maintain threshold licensing requirements. This category includes persons served with criminal indictments. The Civil Fine Committee established under the Prohibit of Money Laundering Law and chaired by the ISA Chairman is empowered to impose civil fines for violations of this law.
