Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 83

Approval of rules or amendments to rules of recognized investor compensation companies

(1) Subject to subsection (7), no rule (whether or not made under section 82)
of a recognized investor compensation company or any amendment thereto shall
have effect unless it has the approval in writing of the Commission.

(2) A recognized investor compensation company shall submit or cause to be
submitted to the Commission-

   (a)  for its approval the rules and every amendment thereto that require
        approval under subsection (1), together with explanations of their
        purpose and likely effect, including their effect on the investing
        public, in sufficient detail to enable the Commission to decide
        whether to approve them or refuse to approve them; and

   (b)  for its information the rules which belong to a class the subject of a
        declaration under subsection (7) and every amendment to the rules, as
        soon as reasonably practicable after they have been made.

(3) The Commission shall, not later than 6 weeks after the receipt of a
submission under subsection (2)(a) from a recognized investor compensation
company, by notice in writing served on the company, give its approval or
refuse to give its approval (together with its reasons for the refusal) to the
rules or amendment of the rules (as the case may be) or any part thereof, the
subject of the submission.

(4) The Commission may give its approval under subsection (3) subject to
requirements which shall be satisfied before the rules or amendment of the
rules or any part thereof take effect.

(5) The Commission may in a particular case, with the agreement of the
recognized investor compensation company concerned, extend the time prescribed
in subsection (3).

(6) The Financial Secretary may, after consultation with the Commission and
the recognized investor compensation company concerned, extend the time
prescribed in subsection (3).

(7) The Commission may, by notice published in the Gazette, declare any class
of rules of a recognized investor compensation company to be a class of rules
which are not required to be approved under subsection (1) and, accordingly,
any rules of the company which belong to that class

(including any amendment thereto) shall have effect notwithstanding that they
have not been so approved.

(8) A recognized investor compensation company shall make its rules available
to the public in a manner approved by the Commission.

(9) Neither the rules under section 82 nor a notice under subsection (7) is
subsidiary legislation.