Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 75

Commission may give directions to recognized exchange controller where it is satisfied that conflict of interest exists, etc.

(1) Where the Commission is satisfied that-

   (a)  a conflict of interest exists or may come into existence between-

        (i)    the interest of a recognized exchange controller or a relevant 
               corporation; and

        (ii)   the interest of the proper performance of the functions
               conferred by this or any other Ordinance (including any rules
               made under any Ordinance, whether or not they are subsidiary
               legislation) on the controller or the relevant corporation; or

   (b)  such a conflict of interest has existed in circumstances that make it
        likely that the conflict of interest will continue or be repeated,
        then the Commission may, by notice in writing served on the controller
        or relevant corporation (as the case may be) stating the reasons in
        support of the ground or grounds for the notice, direct the controller
        or relevant  corporation (as the case may be) to forthwith take such
        steps as are specified in the notice (including steps in relation to
        any of its affairs, business and property whatsoever) for the purposes
        of remedying the conflict of interest or the matters occasioning the
        conflict of interest (as the case may be).

(2) A notice served under subsection (1) shall take effect immediately.

(3) A recognized exchange controller or relevant corporation served with a
notice under subsection (1) which, without reasonable excuse, fails to comply
with the notice 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.