LBMA Rules for Members
Section 9: Enforcement
The Sub-Board Group, will pursue one the following actions, where a Member fails to comply with the Rules. Any decision by this group is considered final.
9.1 Level 1 Warning and/or Suspension
If a Member is found to be in breach of these Rules, and provided the breach does not satisfy the criteria provided under Level 2, then the following options are available:
a) Written warning: a written warning will be issued, asking the Member to remediate the breach within a given time. Failure to remedy the breach could lead to suspension or termination of Membership.
b) Suspension: LBMA reserves the right to suspend Membership status with immediate effect until further notice should LBMA require time to investigate potential issues/breaches. If, on further analysis, LBMA determines that the Rules are not being adhered to, LBMA reserves the right to terminate or revoke the Membership.
9.2 Level 2 Termination
If a Member:
a) Commits a serious breach of these Rules;
b) Repeatedly breaches these Rules (which can amount to a serious breach);
c) Fails to remedy a breach within six months of first being sent a warning notification;
d) Commits a serious offence under the rules of any relevant regulatory body;
and that, as a result of the breach, the Member’s continuing Membership could bring LBMA into disrepute, the Membership may be terminated/revoked. The Sub-Board Group may do this without the Member’s consent and the Member shall cease to be a Member from the date of the
Additionally, in the event that:
(a) A Member ceases carrying on business, is adjudicated bankrupt or makes any scheme, arrangement or composition with its creditors generally, or an administration order is made in respect of any Member, or a resolution is passed or an order is made for the winding-up or dissolution of any Member, or if a Member dies, or if an award of sequestration is made against any Member; or
(b) Any analogous event (to those specified in paragraph (a) above) occurs under the law of a country outside the United Kingdom; or
(c) A Member’s Membership Fee has not been paid for a period of six months from the date it is deemed to have received the subscription invoice from LBMA;
the membership shall automatically cease.
9.3 Termination by Calling a General Meeting
Alternatively, subject to the provisions of the Applicable Laws, any Member may be removed from Membership or such status of LBMA by a resolution of the Members at a General Meeting. The resolution must be passed by at least three-quarters of the Members of LBMA present and voting at a General Meeting. The General Meeting can only take place if not less than 28 clear days’ notice has been provided to the Member whose removal is in question and to all the Members, specifying the intention to propose such a resolution. Notice of the general nature of the grounds on which such a resolution is proposed must be sent to the Member whose removal is in question at least 14 clear days before the meeting, as it is entitled to be heard by the Members at that meeting