Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 398

General provisions for rules by Commission

(1) Notwithstanding any other provisions of this Ordinance but subject to
subsection (3), where the Commission proposes to make rules under any
provision of this Ordinance, it shall publish a draft of the proposed rules,
in such manner as it considers appropriate, for the purpose of inviting
representations on the proposed rules by the public.

(2) Where the Commission makes any rules under any provision of this Ordinance
after a draft is published under subsection (1) in relation to the rules, it
shall-

   (a)  publish, in such manner as it considers appropriate, an account
        setting out in general terms-

        (i)    the representations made on the draft; and

        (ii)   the response of the Commission to the representations; and

   (b)  where the rules are made with modifications which in the opinion of
        the Commission result in the rules being significantly different from
        the draft, publish, in such manner as it considers appropriate,
        details of the difference.

(3) Subsections (1) and (2) do not apply if the Commission considers, in the
circumstances of the case, that-

   (a)  it is inappropriate or unnecessary that such subsections should apply;
        or

   (b)  any delay involved in complying with such subsections would not be-

        (i)    in the interest of the investing public; or

        (ii)   in the public interest.

(4) Notwithstanding any other provisions of this Ordinance, the Commission
shall consult the Monetary Authority regarding rules it proposes to make under
any provision of this Ordinance in so far as such rules apply to authorized
financial institutions by reason of their being registered institutions, or
associated entities of intermediaries.

(5) For the avoidance of doubt, nothing in subsections (1) to (4) affects any
other requirements which, apart from such subsections, apply to the making of
any rules under any provision of this Ordinance.

(6) Where rules are made by the Commission under any provision of this
Ordinance and it has not been provided in this Ordinance that the rules may
provide that a contravention of any specified provision of the rules
constitutes an offence, the Chief Executive in Council may make regulations to
provide that a person who contravenes any specified provision of the rules
that applies to him commits an offence and is liable to a specified penalty
not exceeding-

   (a)  on conviction on indictment a fine of $500000 and a term of
        imprisonment of 2 years;

   (b)  on summary conviction a fine at level 6 and a term of imprisonment of
        6 months.

(7) Except as otherwise provided in this Ordinance, rules made by the
Commission under any provision of this Ordinance may provide that, subject to
the terms and conditions specified in the rules, the provisions of this
Ordinance specified in the rules-

   (a)  shall not have effect, or shall only have effect to a specified
        extent, in relation to any specified person or to members of a
        specified class of persons-

        (i)    who is or are or may be required to be licensed by reason only
               of his or their doing anything that is incidental to another
               business;

        (ii)   who does not or do not, on behalf of any other person, deal in
               securities or futures contracts or trade in interests in
               collective investment schemes or leveraged foreign exchange
               contracts; or

        (iii)  who is or are or may be required to be licensed by reason only
               of his or their entering into a specified class of
               transactions;

   (b)  shall not have effect in relation to any specified transaction or
        class of transactions entered into by any specified person or class of
        persons;

   (c)  shall, where they require any application, statement, notice or other
        document (however described) to be lodged or filed with or submitted
        to the Commission, be regarded as having been complied with if the
        application, statement, notice or other document (as the case may be)
        is lodged or filed with or submitted to any other specified person.

(8) Except as otherwise provided in this Ordinance, rules made by the
Commission under any provision of this Ordinance-

   (a)  may be of general or special application and may be made so as to
        apply only in specified circumstances;

   (b)  may make different provisions for different circumstances and provide
        for different cases or classes of cases;

   (c)  may authorize any matter or thing to be determined, applied or
        regulated by any specified person;

   (d)  may provide for the exercise of discretion in specified cases;

   (e)  may, for the better and more effectual carrying into effect of any
        provision of this Ordinance or the rules, include any savings,
        transitional, incidental, supplemental, evidential and consequential
        provisions (whether involving the provisions of any principal
        legislation or the provisions of any subsidiary legislation).