Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 62

Exemption from section 59(1) and revocation of exemption

(1) Where the Financial Secretary is satisfied that it is appropriate to do
so-

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

   (b)  for the proper regulation of markets in securities or futures
        contracts, he may, by notice in writing served on a person, exempt the
        person from section 59(1)-

        (i)    subject to such conditions as he considers appropriate
               specified in the notice; and

        (ii)   with effect from a date specified in the notice for the
               purpose.

(2) Where the Financial Secretary is satisfied that it is appropriate to do
so-

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

   (b)  for the proper regulation of markets in securities or futures
        contracts, he may, by notice in writing served on a person the subject
        of an exemption under subsection (1) stating the reasons in support of
        the ground or grounds for the notice, revoke the exemption-

        (i)    subject to such conditions as he considers appropriate
               specified in the notice; and

        (ii)   with effect from a date specified in the notice for the
               purpose, being a date reasonable in all the circumstances of
               the case.

(3) Subject to subsection (4), a person who fails to comply with a condition
specified in a notice under subsection (1) or (2) commits an offence and is
liable-

   (a)  on conviction on indictment to a fine of $1000000 and to imprisonment
        for 2 years; or

   (b)  on summary conviction to a fine at level 6 and to imprisonment for 6
        months.

(4) It is a defence for a person charged with an offence under subsection (3)
to prove that the person exercised reasonable diligence to comply with the
notice concerned under subsection (1) or (2) served on the person.

(5) Without limiting the generality of the Financial Secretary's power under
subsection (1), a person is exempt from section 59(1) in the cases specified
in Part 8 of Schedule 3.

(6) For the avoidance of doubt, it is hereby declared that the Financial
Secretary's power under subsection (2) to revoke an exemption under subsection
(1) includes the power to revoke and replace the exemption.