Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 68

Transfer and resumption of function of the Commission

(1) The Commission may request the Chief Executive in Council to
transfer, by order ("transfer order") published in the Gazette, to a
recognized exchange controller ("designated exchange controller"), a function
to which this section applies, if the Commission is satisfied that the
designated exchange controller is willing and able to perform the function.

(2) This section applies to a function of the Commission under-

   (a)  Part V;

   (b)  section 145; and

   (c)  Parts II and XII of the Companies Ordinance ( Cap 32).

(3) A function to which this section applies may be transferred by a
transfer order either in whole or in part, and the transfer may be subject to-

   (a)  a reservation that the Commission is to perform the function
        concurrently with the designated exchange controller; and

   (b)  such other conditions as the Commission considers appropriate.

(4) A transfer order may contain such incidental, supplemental and
consequential provisions as may be necessary or expedient for the purpose of
giving full effect to the order.

(5) The Commission shall not request that a transfer order be made in respect
of the making of financial resources rules unless the proposed
designated exchange controller has first supplied the Commission with a draft
of the financial resources rules which it proposes to make, and the Commission
is satisfied that the rules, if made, will afford the investing public an
adequate level of protection.

(6) The Commission may at the request or with the consent of a
designated exchange controller resume a function transferred by a transfer 
order, but the resumption takes effect only by order of the Chief Executive in
Council.

(7) The Chief Executive in Council may order that the Commission resume a
function transferred to a designated exchange controller by a transfer order
if the Commission so requests and if it appears to the Chief Executive in
Council to be in the public interest to do so.

(8) A transfer order may provide for a designated exchange  controller to
retain all or any of the fees payable in relation to the performance of a
transferred function, and an order made under subsection

(6) or (7) may provide for the Commission to retain all or any such fees, from
a date specified in the order.