FINANCIAL RESOURCES RULES (EXEMPTION) NOTICE 2000
- CHAPTER 24K

FINANCIAL RESOURCES RULES (EXEMPTION) NOTICE 2000 - LONG TITLE  
Empowering section (Repealed 5 of 2002 s. 406) VerDate:01/04/2003







FINANCIAL RESOURCES RULES (EXEMPTION) NOTICE 2000 - LONG TITLE  
Empowering section VerDate:20/06/2000



(Cap 24, section 29AA)
 
[20 June 2000]
 
(L.N. 215 of 2000)



FINANCIAL RESOURCES RULES (EXEMPTION) NOTICE 2000 - SECT 1
(Repealed 5 of 2002 s. 406) VerDate:01/04/2003







FINANCIAL RESOURCES RULES (EXEMPTION) NOTICE 2000 - SECT 1
Exemption of dealers VerDate:20/06/2000




(1)	Subject to subsection (2), dealers registered under the 
Securities Ordinance (Cap 333) are exempted from section 13(7) and (8) of 
the Financial Resources Rules (Cap 24 sub. leg.).

(2)	In relation to such a dealer, the exemption under subsection 

(1) applies on condition that-

        (a)	the dealer includes the following in his liquid assets-

        (i)	net amount receivable from a securities margin financier 

        (whether or not registered under the Securities Ordinance (Cap 333)) 
arising from dealing in securities by their common clients, to the extent 
that such amount represents receivables from dealings which are not yet 
due for settlement according to their settlement date; and

        (ii)	amounts receivable from a securities margin financier (whether 
or not registered under the Securities Ordinance (Cap 333)), other than 
the amount referred to in subparagraph (i) which is included in the liquid 
assets, at the lower of-
(A)	the amounts receivable less any provision made for bad and 
doubtful debts; and
(B)	the aggregate of-
(I)	the amount of cash deposited as security by the securities 
margin financier; and
(II)	the market value of any collateral provided by the securities 
margin financier less the applicable haircut amount;

        (b)	the dealer identifies the securities margin financier (whether 
or not registered under the Securities Ordinance (Cap 333)) and reports it 
to the Commission when the dealer lodges the monthly return as required 
under section 35 of the Financial Resources Rules (Cap 24 sub. leg.); and

        (c)	the dealer makes reasonable enquiry into the state of the 
application made by the securities margin financier (whether or not 
registered under the Securities Ordinance (Cap 333)) for registration as a 
securities margin financier.



FINANCIAL RESOURCES RULES (EXEMPTION) NOTICE 2000 - SECT 2
(Repealed 5 of 2002 s. 406) VerDate:01/04/2003







FINANCIAL RESOURCES RULES (EXEMPTION) NOTICE 2000 - SECT 2
Cessation of exemption notice VerDate:20/06/2000



The exemption under section 1 shall cease to have effect in relation to a 
dealer-

        (a)	in the case where the securities margin financier concerned has 
not applied to the Commission to be registered as a securities margin 
financier on or before 12 July 2000, on 13 July 2000; and

        (b)	in the case where the securities margin financial concerned has 
applied to the Commission to be registered as a securities margin 
financier on or before 12 July 2000-

        (i)	on the date when the securities margin financier concerned 
becomes so registered; or

        (ii)	14 days after the Commission has notified the securities 
margin financier the refusal of its application,
whichever is applicable.