Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 394

Orders by Chief Executive in Council for levies

(1) A levy (if any) at the rate specified by the Chief Executive in Council by
order published in the Gazette shall be payable to the Commission by the
person or persons so specified by the Chief Executive in Council for-

   (a)  every sale and purchase of any securities which is recorded on a
        recognized stock market or notified to a recognized exchange company
        under its rules;

   (b)  every sale and purchase of any futures contract traded on a recognized
        futures market; and

   (c)  every sale and purchase of any securities or futures contracts traded
        by means of authorized automated trading services.

(2) For the purposes of subsection (1), the Chief Executive in Council may-

   (a)  specify the rate or amount of the levy payable under that subsection
        for any sale and purchase-

        (i)    as a percentage of the consideration for the sale and purchase;

        (ii)   as a fixed amount;

        (iii)  as a nil rate, nil percentage or nil amount; or

        (iv)   as to be calculated in any other manner specified in the order;

   (b)  specify different rates for different classes of securities or
        futures contracts.

(3) Each recognized exchange company, and each person authorized to provide
authorized automated trading services, shall collect, account for, and pay to
the Commission, the levy (if any) payable under subsection (1).

(4) The Commission may recover the amount of any levy payable under this
section as a civil debt due to it.

(5) The Chief Executive in Council may make rules for-

   (a)  the payment of levies under this section;

   (b)  the imposition of charges or penalties for late payment of such
        levies;

   (c)  the keeping, examination and audit of the accounts of recognized
        exchange companies, and of persons authorized to provide authorized
        automated trading services, relating to the collection and payment to
        the Commission of such levies.

(6) Nothing in subsection (1) requires the Chief Executive in Council to
specify a rate or amount of levy in any particular sale and purchase to which
that subsection applies or in any particular class of sales and purchases to
which that subsection applies.