provide an explanation for that action.  Any total or partial denial

of any application for a license or a required new product or

service approval should, upon request, be accompanied by a

written statement of explanation from the relevant regulator

detailing the reasons for the denial, including the particular

requirements of the regulations governing the issuance of such

license or required approval that were not satisfied.  Applicants

should be given the opportunity to resubmit applications or to file

additional or supplementary materials in support of their

applications.

2.

Applicants should be afforded meaningful access to administrative

or judicial appeal of a denial of a license or a required product or

service approval (or failure to act on an application).

3.

An appeal of a denial of a license or a required product or service

approval should be decided within a reasonable time period after

the appeal is filed.  An applicant's decision to pursue an appeal

(whether formal or informal) should not prejudice its existing

licensed operations.

V.

Implementation of Regulatory Standards

A.

Inspections, audits, investigations and regulatory enforcement

proceedings

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1.

All inspections, audits, investigations and regulatory enforcement

proceedings should be conducted pursuant to established

regulatory and judicial standards and should not arbitrarily

discriminate based on improper or other extraneous criteria like

nationality.

2.

All inspections, audits, and investigations should be conducted in a

manner that does not impinge on the rights of licensed market

participants and their directors, officers and employees.

3.

A regulatory authority

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 should not publicly disclose the fact that it

is conducting an inspection, audit or investigation of a particular

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The term "regulatory enforcement proceedings" means administrative or judicial

action authorized by the relevant regulatory authority and is intended to cover civil,

administrative or criminal proceedings that involve a financial services firm and/or its

employees based on their financial services activities.

24

The term  regulatory authority  is intended to cover all regulatory bodies involved in

the inspection, auditing, investigation or prosecution of the activities of financial services

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