review to be undertaken, or the manner in which the

regulatory authority carries out its functions.

b.

Access to evidence.  The subjects of a regulatory

proceeding should, upon request, be permitted reasonable

access to all documents and records that are relevant to the

subject matter involved in the pending regulatory action.

Documents and records to which access is denied based on

privileges generally recognized in such proceedings should

not be admissible in evidence in such regulatory

proceeding.

c.

Burden of proof.  The burden of proof to demonstrate that a

licensed market participant has not conducted its business

in accordance with the relevant law and regulation should

rest with the regulatory authorities.

3.

Sanctions and Appeals

a.

Sanctions.  Sanctions by a regulatory authority should be

imposed in a fair and nondiscriminatory manner based on

the relevant facts and with an effort to treat similarly

situated persons and entities in a similar manner.  The basis

for any decision to impose sanctions by a regulatory

authority should be explained in a writing that is made

available to the subjects of the proceeding.

b.

Appeals.  The subjects of a regulatory proceeding should

have available to them a forum for appealing the decisions

rendered and sanctions imposed.  The body considering a

particular level of appeal should be separate from that

which made the decision or imposed the sanction that

forms the basis of the appeal.  Appeals to a regulatory

authority should be decided in a timely manner and appeal

determinations should be explained in a writing that is

made available to the subjects of the proceeding.

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