Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 85

Withdrawal of recognition of investor compensation company

(1) Subject to subsections (3), (4) and (5), the Commission may, after
consultation with the Financial Secretary, by notice in writing served on a
recognized investor compensation company, withdraw the company's recognition
as an investor compensation company with effect from a date specified in the
notice for the purpose.

(2) The Commission may by the notice served under subsection (1) permit the
recognized investor compensation company to continue, on or after the date on
which the withdrawal is to take effect, to carry on such activities affected
by the withdrawal as the Commission may specify in the notice for the purpose
of-

   (a)  closing down the operations of the company; or

   (b)  protecting the interest of the investing public or the public
        interest.

(3) The Commission may only serve a notice under subsection (1) in relation to
a recognized investor compensation company that-

   (a)  fails to comply with any requirement of this Ordinance or with a
        condition imposed under section 79;

   (b)  is being wound up;

   (c)  ceases to perform any function transferred to it under section  80 ;
        or

   (d)  requests the Commission to do so.

(4) Except where responding to a request under subsection (3)(d), the
Commission shall not exercise its power under subsection (1) in relation to a
recognized investor compensation company unless it has given the company a
reasonable opportunity of being heard.

(5) Except where responding to a request under subsection (3)(d), the
Commission shall give the recognized investor compensation company not less
than 14 days' notice in writing of its intention to serve a notice under
subsection (1) and the grounds for doing so.

(6) Where the Commission withdraws a company's recognition as an investor
compensation company under subsection (1), it shall cause notice of that fact
to be published in the Gazette.

(7) A notice served under this section shall take effect immediately.