COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - CHAPTER 250D COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - LONG TITLE Empowering section (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - LONG TITLE Empowering section VerDate:30/06/1997 (Cap 250 section 109) [1 December 1993] (L.N. 420 of 1993) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 1 (Omitted as spent) VerDate:30/06/1997 (Omitted as spent) (Enacted 1993) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 2 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 2 Interpretation VerDate:12/06/2000 In these Rules, unless the context otherwise requires- "authorized institution" (認可機構) has the same meaning as in the Banking Ordinance (Cap 155); "futures or options clearing house" (期貨或期權結算所) has the same meaning as in the Financial Resources Rules (L.N. 103 of 2000); (L.N. 102 of 2000) "liquid capital" (速動資金) has the same meaning as in the Financial Resources Rules (Cap 24 sub. leg.). (L.N. 102 of 2000) (Enacted 1993. L.N. 102 of 2000) "authorized institution" (認可機構) "futures or options clearing house" (期貨或期權結算所) "liquid capital" (速動資金) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 2 Interpretation VerDate:30/06/1997 In these Rules, unless the context otherwise requires- "adjusted net admissible assets" (經調整可接納資產淨值) has the same meaning as in the Financial Resources Rules (Cap 24 sub. leg.); "authorized institution" (認可機構) has the same meaning as in the Banking Ordinance (Cap 155); "clearing house" (結算所) means a clearing house for the registration and settlement of futures contracts and options. (Enacted 1993) "adjusted net admissible assets" (經調整可接納資產淨值) "authorized institution" (認可機構) "clearing house" (結算所) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 3 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 3 Forms of profit and loss account and balance sheet VerDate:12/06/2000 (1) The profit and loss account required to be prepared by a dealer under section 50(1) of the Ordinance shall contain the particulars set out in Form 1 in the Schedule. (2) The balance sheet required to be prepared by a dealer under section 50(1) of the Ordinance shall contain the particulars set out in Form 2 in the Schedule, and shall be accompanied by a computation of his liquid capital. (L.N. 102 of 2000) (Enacted 1993) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 3 Forms of profit and loss account and balance sheet VerDate:30/06/1997 (1) The profit and loss account required to be prepared by a dealer under section 50(1) of the Ordinance shall contain the particulars set out in Form 1 in the Schedule. (2) The balance sheet required to be prepared by a dealer under section 50(1) of the Ordinance shall contain the particulars set out in Form 2 in the Schedule, and shall be accompanied by a computation of his adjusted net admissible assets. (Enacted 1993) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 4 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 4 Auditor's report VerDate:12/06/2000 An auditor's report under section 50(1) of the Ordinance shall contain a statement by the auditor as to whether- (a) he has obtained all the information and explanations which to the best of his knowledge and belief are necessary for the purpose of the audit; (b) in the auditor's opinion- (i) the dealer has properly kept the records required to be kept by him under section 45 of the Ordinance; (ii) the profit and loss account and the balance sheet are in accordance with the records kept under section 45 of the Ordinance and comply with the requirements of these Rules; (iii) the dealer has properly kept all segregated accounts in accordance with section 46 of the Ordinance; (iv) the profit and loss account and balance sheet give a true and fair view of the dealer's financial position for the financial year to which they relate; (v) the computation of liquid capital is correctly compiled from the books and records of the dealer, and if such is not correctly compiled, the nature and extent of the incorrectness; and (L.N. 102 of 2000) (c) there appears to the auditor to have been any contravention of the Financial Resources Rules (Cap 24 sub. leg.) by the dealer during the financial year covered by the auditor's report. (Enacted 1993) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SECT 4 Auditor's report VerDate:30/06/1997 An auditor's report under section 50(1) of the Ordinance shall contain a statement by the auditor as to whether- (a) he has obtained all the information and explanations which to the best of his knowledge and belief are necessary for the purpose of the audit; (b) in the auditor's opinion- (i) the dealer has properly kept the records required to be kept by him under section 45 of the Ordinance; (ii) the profit and loss account and the balance sheet are in accordance with the records kept under section 45 of the Ordinance and comply with the requirements of these Rules; (iii) the dealer has properly kept all segregated accounts in accordance with section 46 of the Ordinance; (iv) the profit and loss account and balance sheet give a true and fair view of the dealer's financial position for the financial year to which they relate; (v) the computation of adjusted net admissible assets is correctly compiled from the books and records of the dealer, and if such is not correctly compiled, the nature and extent of the incorrectness; and (c) there appears to the auditor to have been any contravention of the Financial Resources Rules (Cap 24 sub. leg.) by the dealer during the financial year covered by the auditor's report. (Enacted 1993) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SCHEDULE SCHEDULE (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SCHEDULE SCHEDULE VerDate:12/06/2000 [section 3] FORM 1 ........................................................................... .. (Name of dealer) Profit and Loss Account for the year ended .................................... Current Year Last Year REVENUE Commission and brokerage- (a) trading in futures contracts and options- (i) on the Commodity Exchange (ii) on exchanges outside Hong Kong (iii) other than on an exchange (b) other than on trading in futures contracts and options Profit (Loss) on trading in futures contracts and options- (a) on the Commodity Exchange (b) on exchanges outside Hong Kong (c) other than on an exchange Profit (Loss) on trading in securities Dividends and interest on investments Interest from- (a) clients (b) authorized institutions (c) other sources Exchange difference Other revenue (supply details) ______________ ............................ _____________ .......................... EXPENSES Director's emoluments- (a) fees (b) other emoluments Salaries and allowances (excluding, in the case of sole proprietorships or partnerships, salaries of proprietor or partners) Interest to- (a) clients (b) authorized institutions (c) others Commission Rent and rates Audit fee Professional fees Bad and doubtful debts Depreciation or amortization Other expenses (supply details) NET PROFIT (LOSS) FOR THE YEAR TAXATION NET PROFIT (LOSS) FOR THE YEAR AFTER TAXATION BALANCE BROUGHT FORWARD PROFIT AVAILABLE FOR DISTRIBUTION Proposed dividends ______________ ............................ ______________ ______________ ______________ _____________ .......................... _____________ _____________ _____________ To be completed in the case of sole proprietorships or partnerships. Proprietor's or partner's salaries Share of profits (losses) ______________ _____________ BALANCE CARRIED FORWARD ============= ============ (23 of 1998 s. 2) FORM 2 ........................................................................... .. (Name of dealer) Balance Sheet As At ............................... Current Year Last Year Cost Depreciation Balance FIXED ASSETS Immovable property- (a) in Hong Kong (b) outside Hong Kong Other fixed assets Share(s) in the Hong Kong Futures Exchange Limited Shares or Memberships in, or admission fees paid to, other exchanges or futures or options clearing houses- (a) in Hong Kong (b) outside Hong Kong Other unlisted investments Statutory deposits and deposits with exchanges and futures or options clearing houses Contributions in cash to compensation fund Other assets (supply details) CURRENT ASSETS Listed investments State the basis of valuation (if the cost, state the market value)- (a) in Hong Kong (b) outside Hong Kong Other investments ................ ======= .................. ========= ................ ======= ............... ======= Notes 1 and/or 2 Amounts receivable arising from the ordinary course of business of trading in futures contracts and options- (a) clients (b) brokers and dealers (c) futures or options clearing houses LESS: Provision for bad and doubtful debts Notes 1 and/or 2 Other amounts receivable- (a) secured (b) unsecured LESS: Provision for bad and doubtful debts Payments in advance Utility, rent and other deposits Cash at banks- (a) general account (b) segregated account Other current assets (supply details) DEDUCT: CURRENT LIABILITIES Current Year Last Year Notes 1 and/or 2 Amounts payable arising from the ordinary course of business of dealing in futures contracts and options- (a) clients (b) brokers and dealers (c) futures or options clearing houses Notes 1 and/or 2 Other amounts payable- (a) secured (b) unsecured Notes 1 and/or 2 Bank loans and overdrafts- (a) secured (b) unsecured Notes 1 and/or 2 Other loans and advances- (a) secured (b) unsecured Accrued expenses Proposed dividends Taxation Other liabilities (supply details) NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS Notes 1 and/or 2 LONG-TERM LIABILITIES (supply details) Representing SHARE CAPITAL-Authorized Issued and fully paid-up CAPITAL RESERVES OTHER RESERVES ___________ =========== ___________ =========== Note 3 To be completed in the case of sole proprietorships or partnerships. CAPITAL ACCOUNT CURRENT ACCOUNT TRADING ACCOUNT PROFIT AND LOSS ACCOUNT ___________ =========== ___________ =========== (In the case of partnerships, the balance sheet must be signed by at least one general partner) NOTES TO THE ACCOUNTS 1. In the case of a dealer which is a corporation, distinguish balances due to or from- (a) a director (b) an associated company or company within the group in which the dealer is a member. 2. Where any amount is secured, specify by way of note the following particulars- (a) names of any interested parties (b) amount due (c) whether it is interest bearing, and if so, the rate of interest (d) date and terms of repayment (e) nature of security, market value and the identity of the owner of the security. Current Year Last Year 3. (a) For capital and current accounts- (i) balance at the beginning of the financial year (ii) movements during the year- (A) fund introductions (B) fund withdrawals (C) appropriation of profits (D) others (supply details) (iii) balance at the end of the financial year (b) For trading accounts, balance at the end of the financial year (c) In the case of partnerships, specify the balance in each account in respect of each partner 4. Where there is a material position in any foreign currency, specify the following particulars in respect of each foreign currency- (a) net assets/liabilities of that foreign currency included in the Balance Sheet (b) net commitments to buy/sell that foreign currency not included in the Balance Sheet 5. Contingent liabilities and capital commitments- (a) contingent liabilities- (i) secured (supply details) (ii) unsecured (supply details) (b) capital commitments (supply details) 6. Value of any guarantee provided by the dealer as security for- (a) the dealer's own liabilities (supply details) (b) others (supply details) ___________ =========== ___________ =========== ___________ =========== ___________ =========== ____________ ============ ____________ ============ ____________ ============ ____________ ============ (Enacted 1993. 23 of 1998 s. 2; L.N. 102 of 2000) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SCHEDULE SCHEDULE VerDate:01/07/1997 Amendments retroactively made-see 23 of 1998 s. 2 [section 3] FORM 1 ........................................................................... .. (Name of dealer) Profit and Loss Account for the year ended .................................... Current Year Last Year REVENUE Commission and brokerage- (a) trading in futures contracts and options- (i) on the Commodity Exchange (ii) on exchanges outside Hong Kong (iii) other than on an exchange (b) other than on trading in futures contracts and options Profit (Loss) on trading in futures contracts and options- (a) on the Commodity Exchange (b) on exchanges outside Hong Kong (c) other than on an exchange Profit (Loss) on trading in securities Dividends and interest on investments Interest from- (a) clients (b) authorized institutions (c) other sources Exchange difference Other revenue (supply details) _____________ .......................... ____________ ........................ EXPENSES Director's emoluments- (a) fees (b) other emoluments Salaries and allowances (excluding, in the case of sole proprietorships or partnerships, salaries of proprietor or partners) Interest to- (a) clients (b) authorized institutions (c) others Commission Rent and rates Audit fee Professional fees Bad and doubtful debts Depreciation or amortization Other expenses (supply details) NET PROFIT (LOSS) FOR THE YEAR TAXATION NET PROFIT (LOSS) FOR THE YEAR AFTER TAXATION BALANCE BROUGHT FORWARD PROFIT AVAILABLE FOR DISTRIBUTION Proposed dividends ______________ ............................ ______________ ______________ ______________ _____________ .......................... _____________ _____________ _____________ To be completed in the case of sole proprietorships or partnerships. Proprietor's or partner's salaries Share of profits (losses) _____________ _____________ BALANCE CARRIED FORWARD ============= ============ (23 of 1998 s. 2) FORM 2 ........................................................................... .. (Name of dealer) Balance Sheet As At ............................... Current Year Last Year Cost Depreciation Balance FIXED ASSETS Immovable property- (a) in Hong Kong (b) outside Hong Kong Other fixed assets Share(s) in the Hong Kong Futures Exchange Limited Shares or Memberships in, or admission fees paid to, other exchanges or clearing houses- (a) in Hong Kong (b) outside Hong Kong Other unlisted investments Statutory deposits and deposits with exchanges and clearing houses Contributions in cash to compensation fund Other assets (supply details) CURRENT ASSETS Listed investments State the basis of valuation (if the cost, state the market value)- (a) in Hong Kong (b) outside Hong Kong Other investments ............... ======= .................. ========= ............... ======= ................ ======= Notes 1 and/or 2 Amounts receivable arising from the ordinary course of business of trading in futures contracts and options- (a) clients (b) brokers and dealers (c) clearing houses LESS: Provision for bad and doubtful debts Notes 1 and/or 2 Other amounts receivable- (a) secured (b) unsecured LESS: Provision for bad and doubtful debts Payments in advance Utility, rent and other deposits Cash at banks- (a) general account (b) segregated account Other current assets (supply details) DEDUCT: CURRENT LIABILITIES Current Year Last Year Notes 1 and/or 2 Notes 1 and/or 2 Notes 1 and/or 2 Notes 1 and/or 2 Notes 1 and/or 2 Amounts payable arising from the ordinary course of business of dealing in futures contracts and options- (a) clients (b) brokers and dealers (c) clearing houses Other amounts payable- (a) secured (b) unsecured Bank loans and overdrafts- (a) secured (b) unsecured Other loans and advances- (a) secured (b) unsecured Accrued expenses Proposed dividends Taxation Other liabilities (supply details) NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LONG-TERM LIABILITIES (supply details) Representing SHARE CAPITAL-Authorized Issued and fully paid-up CAPITAL RESERVES OTHER RESERVES ___________ =========== ____________ ============ Note 3 To be completed in the case of sole proprietorships or partnerships. CAPITAL ACCOUNT CURRENT ACCOUNT TRADING ACCOUNT PROFIT AND LOSS ACCOUNT ___________ =========== ____________ ============ (In the case of partnerships, the balance sheet must be signed by at least one general partner) NOTES TO THE ACCOUNTS 1. In the case of a dealer which is a corporation, distinguish balances due to or from- (a) a director (b) an associated company or company within the group in which the dealer is a member. 2. Where any amount is secured, specify by way of note the following particulars- (a) names of any interested parties (b) amount due (c) whether it is interest bearing, and if so, the rate of interest (d) date and terms of repayment (e) nature of security, market value and the identity of the owner of the security. Current Year Last Year 3. (a) For capital and current accounts- (i) balance at the beginning of the financial year (ii) movements during the year- (A) fund introductions (B) fund withdrawals (C) appropriation of profits (D) others (supply details) (iii) balance at the end of the financial year (b) For trading accounts, balance at the end of the financial year (c) In the case of partnerships, specify the balance in each account in respect of each partner 4. Where there is a material position in any foreign currency, specify the following particulars in respect of each foreign currency- (a) net assets/liabilities of that foreign currency included in the Balance Sheet (b) net commitments to buy/sell that foreign currency not included in the Balance Sheet 5. Contingent liabilities and capital commitments- (a) contingent liabilities- (i) secured (supply details) (ii) unsecured (supply details) (b) capital commitments (supply details) 6. Value of any guarantee provided by the dealer as security for- (a) the dealer's own liabilities (supply details) (b) others (supply details) ___________ =========== ___________ =========== __________ =========== ___________ =========== ____________ ============ ____________ ============ ____________ ============ ____________ ============ (Enacted 1993. 23 of 1998 s. 2) COMMODITIES TRADING (ACCOUNTS AND AUDIT) RULES - SCHEDULE SCHEDULE VerDate:30/06/1997 [section 3] FORM 1 ........................................................................... .. (Name of dealer) Profit and Loss Account for the year ended .................................... Current Year Last Year REVENUE Commission and brokerage- (a) trading in futures contracts and options- (i) on the Commodity Exchange (ii) on overseas exchanges (iii) other than on an exchange (b) other than on trading in futures contracts and options Profit (Loss) on trading in futures contracts and options- (a) on the Commodity Exchange (b) on overseas exchanges (c) other than on an exchange Profit (Loss) on trading in securities Dividends and interest on investments Interest from- (a) clients (b) authorized institutions (c) other sources Exchange difference Other revenue (supply details) _____________ .......................... ____________ ........................ EXPENSES Director's emoluments- (a) fees (b) other emoluments Salaries and allowances (excluding, in the case of sole proprietorships or partnerships, salaries of proprietor or partners) Interest to- (a) clients (b) authorized institutions (c) others Commission Rent and rates Audit fee Professional fees Bad and doubtful debts Depreciation or amortization Other expenses (supply details) NET PROFIT (LOSS) FOR THE YEAR TAXATION NET PROFIT (LOSS) FOR THE YEAR AFTER TAXATION BALANCE BROUGHT FORWARD PROFIT AVAILABLE FOR DISTRIBUTION Proposed dividends _____________ ........................... _____________ _____________ _____________ ____________ ......................... ____________ ____________ ____________ To be completed in the case of sole proprietorships or partnerships. Proprietor's or partner's salaries Share of profits (losses) ____________ ___________ BALANCE CARRIED FORWARD ============ ============ FORM 2 ........................................................................... .. (Name of dealer) Balance Sheet As At ............................... Current Year Last Year Cost Depreciation Balance FIXED ASSETS Immovable property- (a) in Hong Kong (b) outside Hong Kong Other fixed assets Share(s) in the Hong Kong Futures Exchange Limited Shares or Memberships in, or admission fees paid to, other exchanges or clearing houses- (a) local (b) overseas Other unlisted investments Statutory deposits and deposits with exchanges and clearing houses Contributions in cash to compensation fund Other assets (supply details) CURRENT ASSETS Listed investments State the basis of valuation (if the cost, state the market value)- (a) in Hong Kong (b) outside Hong Kong Other investments ............... ======= .................... ========= ............... ======= ................ ======= Notes 1 and/or 2 Amounts receivable arising from the ordinary course of business of trading in futures contracts and options- (a) clients (b) brokers and dealers (c) clearing houses LESS: Provision for bad and doubtful debts Notes 1 and/or 2 Other amounts receivable- (a) secured (b) unsecured LESS: Provision for bad and doubtful debts Payments in advance Utility, rent and other deposits Cash at banks- (a) general account (b) segregated account Other current assets (supply details) DEDUCT: CURRENT LIABILITIES Current Year Last Year Notes 1 and/or 2 Notes 1 and/or 2 Notes 1 and/or 2 Notes 1 and/or 2 Notes 1 and/or 2 Amounts payable arising from the ordinary course of business of dealing in futures contracts and options- (a) clients (b) brokers and dealers (c) clearing houses Other amounts payable- (a) secured (b) unsecured Bank loans and overdrafts- (a) secured (b) unsecured Other loans and advances- (a) secured (b) unsecured Accrued expenses Proposed dividends Taxation Other liabilities (supply details) NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LONG-TERM LIABILITIES (supply details) Representing SHARE CAPITAL-Authorized Issued and fully paid-up CAPITAL RESERVES OTHER RESERVES ___________ =========== ____________ ============ Note 3 To be completed in the case of sole proprietorships or partnerships. CAPITAL ACCOUNT CURRENT ACCOUNT TRADING ACCOUNT PROFIT AND LOSS ACCOUNT ___________ =========== ____________ ============ (In the case of partnerships, the balance sheet must be signed by at least one general partner) NOTES TO THE ACCOUNTS 1. In the case of a dealer which is a corporation, distinguish balances due to or from- (a) a director (b) an associated company or company within the group in which the dealer is a member. 2. Where any amount is secured, specify by way of note the following particulars- (a) names of any interested parties (b) amount due (c) whether it is interest bearing, and if so, the rate of interest (d) date and terms of repayment (e) nature of security, market value and the identity of the owner of the security. Current Year Last Year 3. (a) For capital and current accounts- (i) balance at the beginning of the financial year (ii) movements during the year- (A) fund introductions (B) fund withdrawals (C) appropriation of profits (D) others (supply details) (iii) balance at the end of the financial year (b) For trading accounts, balance at the end of the financial year (c) In the case of partnerships, specify the balance in each account in respect of each partner 4. Where there is a material position in any foreign currency, specify the following particulars in respect of each foreign currency- (a) net assets/liabilities of that foreign currency included in the Balance Sheet (b) net commitments to buy/sell that foreign currency not included in the Balance Sheet 5. Contingent liabilities and capital commitments- (a) contingent liabilities- (i) secured (supply details) (ii) unsecured (supply details) (b) capital commitments (supply details) 6. Value of any guarantee provided by the dealer as security for- (a) the dealer's own liabilities (supply details) (b) others (supply details) ___________ =========== ___________ =========== ___________ =========== ___________ =========== ____________ ============ ____________ ============ ____________ ============ ____________ ============ (Enacted 1993)