Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 79

Recognition of investor compensation company

Division 5-Investor compensation companies

(1) Where the Commission 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 facilitation of the management and administration of the
        compensation fund under Part XII, it may, after consultation with the
        Financial Secretary, by notice in writing served on a company,
        recognize the company as an investor compensation company-

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

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

(2) Without limiting the generality of conditions which may be specified in a
notice under subsection (1), the Commission may, by notice in writing served
on a recognized investor compensation company, amend or revoke any condition
specified in the first-mentioned notice or impose new conditions, where the
Commission-

   (a)  is satisfied that it is appropriate to do so on a ground specified in
        paragraph (a) or (b) of that subsection; and

   (b)  has consulted the Financial Secretary.

(3) Where the Commission amends or revokes any condition or imposes any new
condition by a notice under subsection (2), the amendment, revocation or
imposition takes effect at the time of service of the notice or at the time
specified in the notice, whichever is the later.

(4) Where a company becomes a recognized investor compensation company, the
Commission shall cause notice of that fact to be published in the Gazette.

(5) Where a company is seeking to be a recognized investor compensation
company and the Commission is minded not to recognize the company under
subsection (1), the Commission shall give the company a reasonable opportunity
of being heard before making a decision not to recognize the company.

(6) Where the Commission refuses to recognize a company as an investor
compensation company under subsection (1), the Commission shall, by notice in
writing served on the company, inform the company of the refusal and of the
reasons for it.