SECURITIES (MISCELLANEOUS) RULES - CHAPTER 333A SECURITIES (MISCELLANEOUS) RULES - LONG TITLE Empowering section (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - LONG TITLE Empowering section VerDate:30/06/1997 (Cap 333 section 146(1)) [8 June 1990] (L.N. 175 of 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 1 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 1 Citation VerDate:30/06/1997 These rules may be cited as the Securities (Miscellaneous) Rules. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 2 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 2 Interpretation VerDate:03/01/2001 "authorization" (認可) "dealer" (交易商) "default" (失責) "deposit" (按金) "Exchange Fund Bill" (外匯基金票據) "Exchange Fund Note" (外匯基金債券) "fund" (基金) "legal obligation" (法律義務) "Monetary Authority" (金融管理專員) "Monetary Authority-appointed market maker" (金融管理專員委任的市場莊家) "specified instrument" (指明文書) In these rules, unless the context otherwise requires- "authorization" (認可) means an authorization under section 15(1) of the Ordinance; "dealer" (交易商) includes a person whose registration as a dealer has been revoked; "default" (失責), in relation to the failure of a dealer to perform a legal obligation, means a default arising from- (a) any breach of trust committed by the dealer or any co-trustee of the dealer, and if the dealer is a corporation, by any director or other officer of the corporation; (b) any defalcation, fraud or misfeasance committed by the dealer or any servant of the dealer and- (i) if the dealer is a member of a dealing partnership, by any partner of the partnership; or (ii) if the dealer is a corporation, by any director or officer of the corporation; "deposit" (按金) means a deposit or that part of a deposit required to be paid, or directed to be forfeited, by the Commission under section 52(2) of the Ordinance; "Exchange Fund Bill" (外匯基金票據) means any instrument described as such which is issued by the Government for the account of the Exchange Fund under the Exchange Fund Ordinance (Cap 66); (L.N. 216 of 1999) "Exchange Fund Note" (外匯基金債券) means any instrument described as such which is issued by the Government for the account of the Exchange Fund under the Exchange Fund Ordinance (Cap 66); (L.N. 216 of 1999) "fund" (基金) means- (a) in the case of a mutual fund corporation, a separate pool of assets in respect of which the corporation is the issuer of redeemable shares; (b) in the case of a unit trust, a separate pool of assets in respect of which the beneficiaries under the trust may participate; "legal obligation" (法律義務) includes an obligation arising under a contract or quasi-contract or under a trust (including a constructive trust); "Monetary Authority" (金融管理專員) has the same meaning as in section 2 of the Securities and Futures Commission Ordinance (Cap 24); (L.N. 216 of 1999) "Monetary Authority-appointed market maker" (金融管理專員委任的市場莊家) means a person appointed as a market maker by the Monetary Authority under a letter of appointment currently in force for the purpose of conducting market making activities in respect of Exchange Fund Bills, Exchange Fund Notes and specified instruments; (L.N. 216 of 1999) "specified instrument" (指明文書) means any note issued by the MTR Corporation Limited, the Airport Authority, the Hong Kong Mortgage Corporation Limited and the Kowloon-Canton Railway Corporation under their respective note issuance programmes arranged by the Monetary Authority. (L.N. 216 of 1999; 13 of 2000 s. 65; L.N. 346 of 2000) (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 2 Interpretation VerDate:30/06/2000 "authorization" (認可) "dealer" (交易商) "default" (失責) "deposit" (按金) "Exchange Fund Bill" (外匯基金票據) "Exchange Fund Note" (外匯基金債券) "fund" (基金) "legal obligation" (法律義務) "Monetary Authority" (金融管理專員) "Monetary Authority-appointed market maker" (金融管理專員委任的市場莊家) "specified instrument" (指明文書) In these rules, unless the context otherwise requires- "authorization" (認可) means an authorization under section 15(1) of the Ordinance; "dealer" (交易商) includes a person whose registration as a dealer has been revoked; "default" (失責), in relation to the failure of a dealer to perform a legal obligation, means a default arising from- (a) any breach of trust committed by the dealer or any co-trustee of the dealer, and if the dealer is a corporation, by any director or other officer of the corporation; (b) any defalcation, fraud or misfeasance committed by the dealer or any servant of the dealer and- (i) if the dealer is a member of a dealing partnership, by any partner of the partnership; or (ii) if the dealer is a corporation, by any director or officer of the corporation; "deposit" (按金) means a deposit or that part of a deposit required to be paid, or directed to be forfeited, by the Commission under section 52(2) of the Ordinance; "Exchange Fund Bill" (外匯基金票據) means any instrument described as such which is issued by the Government for the account of the Exchange Fund under the Exchange Fund Ordinance (Cap 66); (L.N. 216 of 1999) "Exchange Fund Note" (外匯基金債券) means any instrument described as such which is issued by the Government for the account of the Exchange Fund under the Exchange Fund Ordinance (Cap 66); (L.N. 216 of 1999) "fund" (基金) means- (a) in the case of a mutual fund corporation, a separate pool of assets in respect of which the corporation is the issuer of redeemable shares; (b) in the case of a unit trust, a separate pool of assets in respect of which the beneficiaries under the trust may participate; "legal obligation" (法律義務) includes an obligation arising under a contract or quasi-contract or under a trust (including a constructive trust); "Monetary Authority" (金融管理專員) has the same meaning as in section 2 of the Securities and Futures Commission Ordinance (Cap 24); (L.N. 216 of 1999) "Monetary Authority-appointed market maker" (金融管理專員委任的市場莊家) means a person appointed as a market maker by the Monetary Authority under a letter of appointment currently in force for the purpose of conducting market making activities in respect of Exchange Fund Bills, Exchange Fund Notes and specified instruments; (L.N. 216 of 1999) "specified instrument" (指明文書) means any note issued by the MTR Corporation Limited, the Airport Authority and the Hong Kong Mortgage Corporation Limited under their respective note issuance programmes arranged by the Monetary Authority. (L.N. 216 of 1999; 13 of 2000 s. 65) (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 2 Interpretation VerDate:13/08/1999 In these rules, unless the context otherwise requires- "authorization" (認可) means an authorization under section 15(1) of the Ordinance; "dealer" (交易商) includes a person whose registration as a dealer has been revoked; "default" (失責), in relation to the failure of a dealer to perform a legal obligation, means a default arising from- (a) any breach of trust committed by the dealer or any co-trustee of the dealer, and if the dealer is a corporation, by any director or other officer of the corporation; (b) any defalcation, fraud or misfeasance committed by the dealer or any servant of the dealer and- (i) if the dealer is a member of a dealing partnership, by any partner of the partnership; or (ii) if the dealer is a corporation, by any director or officer of the corporation; "deposit" (按金) means a deposit or that part of a deposit required to be paid, or directed to be forfeited, by the Commission under section 52(2) of the Ordinance; "Exchange Fund Bill" (外匯基金票據) means any instrument described as such which is issued by the Government for the account of the Exchange Fund under the Exchange Fund Ordinance (Cap 66); (L.N. 216 of 1999) "Exchange Fund Note" (外匯基金債券) means any instrument described as such which is issued by the Government for the account of the Exchange Fund under the Exchange Fund Ordinance (Cap 66); (L.N. 216 of 1999) "fund" (基金) means- (a) in the case of a mutual fund corporation, a separate pool of assets in respect of which the corporation is the issuer of redeemable shares; (b) in the case of a unit trust, a separate pool of assets in respect of which the beneficiaries under the trust may participate; "legal obligation" (法律義務) includes an obligation arising under a contract or quasi-contract or under a trust (including a constructive trust); "Monetary Authority" (金融管理專員) has the same meaning as in section 2 of the Securities and Futures Commission Ordinance (Cap 24); (L.N. 216 of 1999) "Monetary Authority-appointed market maker" (金融管理專員委任的市場莊家) means a person appointed as a market maker by the Monetary Authority under a letter of appointment currently in force for the purpose of conducting market making activities in respect of Exchange Fund Bills, Exchange Fund Notes and specified instruments; (L.N. 216 of 1999) "specified instrument" (指明文書) means any note issued by the Mass Transit Railway Corporation, the Airport Authority and the Hong Kong Mortgage Corporation Limited under their respective note issuance programmes arranged by the Monetary Authority. (L.N. 216 of 1999) (Enacted 1990) "authorization" (認可) "dealer" (交易商) "default" (失責) "deposit" (按金) "Exchange Fund Bill" (外匯基金票據) "Exchange Fund Note" (外匯基金債券) "fund" (基金) "legal obligation" (法律義務) "Monetary Authority" (金融管理專員) "Monetary Authority-appointed market maker" (金融管理專員委任的市場莊家) "specified instrument" (指明文書) SECURITIES (MISCELLANEOUS) RULES - RULE 2 Interpretation VerDate:30/06/1997 In these rules, unless the context otherwise requires- "authorization" (認可) means an authorization under section 15(1) of the Ordinance; "dealer" (交易商) includes a person whose registration as a dealer has been revoked; "default" (失責), in relation to the failure of a dealer to perform a legal obligation, means a default arising from- (a) any breach of trust committed by the dealer or any co-trustee of the dealer, and if the dealer is a corporation, by any director or other officer of the corporation; (b) any defalcation, fraud or misfeasance committed by the dealer or any servant of the dealer and- (i) if the dealer is a member of a dealing partnership, by any partner of the partnership; or (ii) if the dealer is a corporation, by any director or officer of the corporation; "deposit" (按金) means a deposit or that part of a deposit required to be paid, or directed to be forfeited, by the Commission under section 52(2) of the Ordinance; "fund" (基金) means- (a) in the case of a mutual fund corporation, a separate pool of assets in respect of which the corporation is the issuer of redeemable shares; (b) in the case of a unit trust, a separate pool of assets in respect of which the beneficiaries under the trust may participate; "legal obligation" (法律義務) includes an obligation arising under a contract or quasi-contract or under a trust (including a constructive trust). (Enacted 1990) "authorization" (認可) "dealer" (交易商) "default" (失責) "deposit" (按金) "fund" (基金) "legal obligation" (法律義務) SECURITIES (MISCELLANEOUS) RULES - RULE 3 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 3 Amounts to be deposited VerDate:12/06/2000 (1) Subject to subrule (2), the following amounts are prescribed for the purposes of section 52(1) of the Ordinance- (L.N. 88 of 2000) (a) in the case of an applicant who is an individual, whether he intends to carry on business alone or in partnership with one or more other dealers, a sum of $50000; and (b) in the case of an applicant which is a corporation a sum consisting of $50000 for each dealing director for the corporation. (2) In the case where the applicant intends to carry on a business of securities margin financing, the applicant (whether an individual, a partnership or a corporation) is required to lodge and maintain with the Commission a further deposit of $2000000 in the form and manner satisfactory to the Commission. (L.N. 88 of 2000) (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 3 Amounts to be deposited VerDate:30/06/1997 The following amounts are prescribed for the purposes of section 52(1) of the Ordinance- (a) in the case of an applicant who is an individual, whether he intends to carry on business alone or in partnership with one or more other dealers, a sum of $50000; and (b) in the case of an applicant which is a corporation a sum consisting of $50000 for each dealing director for the corporation. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 4 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 4 Application of deposits by trustees in bankruptcy VerDate:30/06/1997 (1) Subject to subrule (2), where the Commission pays a deposit to the trustee in bankruptcy of a bankrupt dealer pursuant to section 52(2)(a) of the Ordinance, the trustee shall apply the deposit as if the clients of the dealer in his capacity as a dealer in securities were the only creditors of the dealer. (2) If there are no clients of the dealer who are his creditors of if their claims against the dealer have been fully satisfied, the trustee in bankruptcy may apply the deposit or, as the case may be, the balance of the deposit for the benefit of any other creditors of the dealer. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 5 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 5 Application of deposits by liquidators VerDate:12/06/2000 (1) Subject to subrule (2), where the Commission pays a deposit to the liquidator of a dealer pursuant to section 52(2)(b) of the Ordinance and the dealer, being a corporation, is ordered to be wound up by the Court, the liquidator shall apply the deposit as if the clients of the dealer in its capacity as a dealer in securities and provider of securities margin financing (where applicable) were the only creditors of the dealer. (L.N. 88 of 2000) (2) If there are no clients of the dealer who are its creditors or if their claims against the dealer have been fully satisfied, the liquidator may apply the deposit or, as the case may be, the balance of the deposit for the benefit of any other creditors of the dealer. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 5 Application of deposits by liquidators VerDate:30/06/1997 (1) Subject to subrule (2), where the Commission pays a deposit to the liquidator of a dealer pursuant to section 52(2)(b) of the Ordinance and the dealer, being a corporation, is ordered to be wound up by the Court, the liquidator shall apply the deposit as if the clients of the dealer in its capacity as a dealer in securities were the only creditors of the dealer. (2) If there are no clients of the dealer who are its creditors or if their claims against the dealer have been fully satisfied, the liquidator may apply the deposit or, as the case may be, the balance of the deposit for the benefit of any other creditors of the dealer. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 6 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6 Application of deposits forfeited under section 52(2)(c) of the Ordinance VerDate:12/06/2000 (1) Where a deposit made by a dealer is forfeited under section 52(2)(c) of the Ordinance, it shall be applied by the Commission for the purpose of compensating persons who establish claims as provided in this rule. (2) Where a person sustains pecuniary loss because of the failure of a dealer, by reason of a default committed in the course of or in connection with the dealer's business of dealing in securities, to perform a legal obligation owed to that person in relation to any money, securities or other property- (a) which was entrusted to or received by that dealer, or any director, partner or employee of that dealer, for or on behalf of that person; and (b) to which that person is entitled or in which that person has a beneficial interest (whether existing or contingent), he shall be entitled to claim compensation from the deposit made under rule 3(1) in accordance with this rule. (L.N. 88 of 2000) (2A) Where a person sustains pecuniary loss because of the failure of a dealer, by reason of a default committed in the course of or in connection with the dealer's business of securities margin financing, to perform a legal obligation owed to that person in relation to any money, securities or other property- (a) which was entrusted to or received by that dealer, or any director, partner or employee of that dealer, for or on behalf of that person; and (b) to which that person is entitled or in which that person has a beneficial interest (whether existing or contingent), he shall be entitled to claim compensation from the deposit made under rule 3(2) in accordance with this rule. (L.N. 88 of 2000) (3) The amount which a claimant shall be entitled to claim as compensation is the amount of the actual pecuniary loss suffered by him (including the reasonable costs of and disbursements incidental to the making and proof of his claim) less the amount or value of all money or other benefits received or receivable by him from any source other than the Commission in reduction of the loss. (4) The Commission shall cause to be published in a daily newspaper in the English language and a daily newspaper in the Chinese language published and circulating generally in Hong Kong a notice in Form 1 prescribed in the Schedule specifying a date, not being earlier than 3 months after publication of the notice, on or before which claims for compensation from the deposit lodged by the dealer specified in the notice may be made. (L.N. 356 of 1990) (5) A claim for compensation may be made in writing to the Commission- (a) if a notice under subrule (4) has been published, on or before the date specified in the notice; or (b) if no such notice has been published, within 6 months after the claimant became aware of the default. (6) The Commission shall, subject to these rules and after such inquiry as it thinks fit- (a) at any time after the commission of the default in respect of which the claim arose, allow any proper claim made in accordance with subrule (5) and determine the amount payable as compensation; and (b) disallow any other claim. (7) Where all claims made in accordance with subrule (5) have been dealt with under subrule (6), the Commission shall, as soon as practicable thereafter and subject to subrule (8), authorize payments from the relevant deposit, in respect of amounts determined under subrule (6), to the persons whose claims have been allowed. (8) In authorizing payment under subrule (7), the Commission shall have regard to the following- (a) if only one amount is determined under subrule (6) and that amount does not exceed the relevant deposit, that amount is payable in full; (b) if 2 or more amounts are so determined and those amounts together do not exceed the relevant deposit, those amounts shall be payable in full; (c) if only one amount is so determined but exceeds the relevant deposit, only so much of the amount as does not exceed the relevant deposit shall be payable; (d) if 2 or more amounts are so determined and those amounts together exceed the relevant deposit, the total amount payable to all claimants whose claims have been allowed under subrule (6) shall not exceed the amount of the relevant deposit and each amount so determined shall be abated by the same proportion as the total amounts determined bear to the amount of the relevant deposit. (L.N. 88 of 2000) (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 6 Application of deposits forfeited under section 52(2)(c) of the Ordinance VerDate:30/06/1997 (1) Where a deposit made by a dealer is forfeited under section 52(2)(c) of the Ordinance, it shall be applied by the Commission for the purpose of compensating persons who establish claims as provided in this rule. (2) Where a person sustains pecuniary loss because of the failure of a dealer, by reason of a default committed in the course of or in connection with the dealer's business of dealing in securities, to perform a legal obligation owed to that person in relation to any money, securities or other property- (a) which was entrusted to or received by that dealer, or any director, partner or employee of that dealer, for or on behalf of that person; and (b) to which that person is entitled or in which that person has a beneficial interest (whether existing or contingent), he shall be entitled to claim compensation in accordance with this rule. (3) The amount which a claimant shall be entitled to claim as compensation is the amount of the actual pecuniary loss suffered by him (including the reasonable costs of and disbursements incidental to the making and proof of his claim) less the amount or value of all money or other benefits received or receivable by him from any source other than the Commission in reduction of the loss. (4) The Commission shall cause to be published in a daily newspaper in the English language and a daily newspaper in the Chinese language published and circulating generally in Hong Kong a notice in Form 1 prescribed in the Schedule specifying a date, not being earlier than 3 months after publication of the notice, on or before which claims for compensation from the deposit lodged by the dealer specified in the notice may be made. (L.N. 356 of 1990) (5) A claim for compensation may be made in writing to the Commission- (a) if a notice under subrule (4) has been published, on or before the date specified in the notice; or (b) if no such notice has been published, within 6 months after the claimant became aware of the default. (6) The Commission shall, subject to these rules and after such inquiry as it thinks fit- (a) at any time after the commission of the default in respect of which the claim arose, allow any proper claim made in accordance with subrule (5) and determine the amount payable as compensation; and (b) disallow any other claim. (7) Where all claims made in accordance with subrule (5) have been dealt with under subrule (6), the Commission shall, as soon as practicable thereafter and subject to subrule (8), authorize payments from the relevant deposit, in respect of amounts determined under subrule (6), to the persons whose claims have been allowed. (8) In authorizing payment under subrule (7), the Commission shall have regard to the following- (a) if only one amount is determined under subrule (6) and that amount does not exceed the deposit, that amount is payable in full; (b) if 2 or more amounts are so determined and those amounts together do not exceed the deposit, those amounts shall be payable in full; (c) if only one amount is so determined but exceeds the deposit, only so much of the amount as does not exceed the deposit shall be payable; (d) if 2 or more amounts are so determined and those amounts together exceed the deposit, the total amount payable to all claimants whose claims have been allowed under subrule (6) shall not exceed the amount of the deposit and each amount so determined shall be abated by the same proportion as the total amounts determined bear to the amount of the deposit. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 6A (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6A Amount to be lodged by registered financiers as security VerDate:12/06/2000 The amount prescribed for the purpose of section 121K(1) of the Ordinance is a sum of $2000000 to be lodged as security in the form and manner satisfactory to the Commission. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 6B (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6B Keeping and investment of security lodged VerDate:12/06/2000 (1) The Commission shall open one or more accounts at a licensed bank into which it shall pay all sums received from registered financiers by way of security under section 121K(1) of the Ordinance, and shall then ascertain what proportion of those sums ought, in its opinion, to be retained in the accounts to enable liabilities under rule 6E or 6G to be satisfied. (2) After ascertaining the amount required to be retained under subrule (1), the Commission shall cause the balance of the sums to be invested in such manner as it thinks fit. (3) Any document relating to the investment of money under subrule (2) may be kept in the office of the Commission or deposited by it for safe keeping with a licensed bank. (4) Where the Commission has invested the balance of the sums under subrule (2), it shall, as soon as practicable after the end of each financial year, by notice in the Gazette- (a) declare a rate of interest to be paid for that financial year in respect of each sum lodged under section 121K(1) of the Ordinance; (b) specify the manner and time of payment of that interest; and (c) specify an amount to be charged for management expenses incurred by the Commission in administering that sum lodged under section 121K(1) of the Ordinance. (5) As soon as practicable after the publication of the notice referred to in subrule (4), the Commission shall, after deducting the appropriate amount chargeable in respect of management expenses, pay to each person who has lodged the prescribed sum under section 121K(1) of the Ordinance, or to that person's duly authorized agent or personal representative, the appropriate amount of interest due in respect of that sum for the financial year in question. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 6C (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6C Accounts of security lodged under section 121K(1) of the Ordinance VerDate:12/06/2000 (1) The Commission shall keep proper accounts of all security lodged under section 121K(1) of the Ordinance, and shall in respect of the financial year beginning before and ending after the day on which this rule commences, and in respect of each subsequent financial year, prepare a revenue and expenditure account, and a balance sheet made up to the last day of that year. (2) The Commission shall appoint an auditor who shall audit the accounts kept under subrule (1) and shall audit and prepare an auditor's report in respect of each revenue and expenditure account and balance sheet prepared under subrule (1) and shall submit the report to the Commission. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 6D (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6D Return of security lodged VerDate:12/06/2000 (1) If any person who has lodged a security under section 121K(1) of the Ordinance ceases to be a registered financier and the security has not been or is not required to be disposed of under rule 6E or 6G, that person, or his duly authorized agent or personal representative, may apply to the Commission for the security to be released to him. (2) On making an application under subrule (1), the applicant shall- (a) satisfy the Commission by a statutory declaration- (i) that he knows of no other person who has made or is entitled to make a claim in respect of the security; (ii) if he is not the registered financier who lodged the security, that he is entitled to give a good discharge for the security and stating the circumstances in which he is so entitled; and (b) provide the Commission with such information as will satisfy it that an advertisement in a form approved by it has been inserted once in a daily newspaper in the English language, and once in a daily newspaper in the Chinese language, published and circulating generally in Hong Kong. (3) The Commission, on being so satisfied, shall cause the security to be released to the applicant. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 6E (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6E Winding up of registered financier VerDate:12/06/2000 If a registered financier is ordered to be wound up by or under the supervision of the Court, the Commission shall pay the security lodged to the liquidator of the registered financier. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 6F (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6F Application of security of registered financier by liquidator VerDate:12/06/2000 (1) Subject to subrule (2), where the Commission pays a security to the liquidator of a registered financier under rule 6E, the liquidator shall apply the security lodged as if the clients of the registered financier in its capacity as a registered financier were the only creditors of the registered financier. (2) If there are no clients of the registered financier who are its creditors or if their claims against the registered financier have been fully satisfied, the liquidator may apply the security or, as the case may be, the balance of the security for the benefit of any other creditors of the registered financier. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 6G (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6G Revocation of certificate of registration of registered financier and application of security VerDate:12/06/2000 (1) If the certificate of registration of a registered financier is revoked, or any director or officer of the registered financier is convicted of an offence necessarily involving a finding that he or it was guilty of a breach of trust, defalcation, fraud, or misfeasance in respect of any money or securities of a person who is a client of the registered financier, the Commission may direct that all or any part of the security be applied for the purpose of compensating persons who established claims as provided in this rule. (2) Where a person sustains pecuniary loss because of the failure of a registered financier, by reason of a default committed in the course of or in connection with the registered financier's business of securities margin financing, to perform a legal obligation owed to that person in relation to any money, securities or other property- (a) which was entrusted to or received by that registered financier, or any director, or employee of that registered financier, for or on behalf of that person; and (b) to which that person is entitled or in which that person has a beneficial interest (whether existing or contingent), he shall be entitled to claim compensation in accordance with this rule. (3) The amount which a claimant shall be entitled to claim as compensation is the amount of the actual pecuniary loss suffered by him (including the reasonable costs of and disbursements incidental to the making and proof of his claim) less the amount or value of all money or other benefits received or receivable by him from any source other than the Commission in reduction of the loss. (4) The Commission shall cause to be published in a daily newspaper in the English language and a daily newspaper in the Chinese language published and circulating generally in Hong Kong a notice in Form 3 prescribed in the Schedule specifying a date, not being earlier than 3 months after publication of the notice, on or before which claims for compensation from the security lodged by the registered financier specified in the notice may be made. (5) A claim for compensation may be made in writing to the Commission- (a) if a notice under subrule (4) has been published, on or before the date specified in the notice; or (b) if no such notice has been published, within 6 months after the claimant became aware of the default. (6) The Commission shall, subject to these rules and after such inquiry as it thinks fit- (a) at any time after the commission of the default in respect of which the claim arose, allow any proper claim made in accordance with subrule (5) and determine the amount payable as compensation; and (b) disallow any other claim. (7) Where all claims made in accordance with subrule (5) have been dealt with under subrule (6), the Commission shall, as soon as practicable thereafter and subject to subrule (8), authorize payments from the relevant security, in respect of amounts determined under subrule (6), to the persons whose claims have been allowed. (8) In authorizing payment under subrule (7), the Commission shall have regard to the following- (a) if only one amount is determined under subrule (6) and that amount does not exceed the security, that amount is payable in full; (b) if 2 or more amounts are so determined and those amounts together do not exceed the security, those amounts shall be payable in full; (c) if only one amount is so determined but exceeds the security, only so much of the amount as does not exceed the security shall be payable; (d) if 2 or more amounts are so determined and those amounts together exceed the security, the total amount payable to all claimants whose claims have been allowed under subrule (6) shall not exceed the amount of the security and each amount so determined shall be abated by the same proportion as the total amounts determined bear to the amount of the security. (9) If all the claims against the registered financier have been fully satisfied, the Commission shall return the balance of the security to the registered financier. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 6H (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 6H Prohibition on transfer or withdrawal of security VerDate:12/06/2000 Except as provided in these rules, no person may transfer or withdraw any security lodged under section 121K(1) of the Ordinance. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 7 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 7 Change of information VerDate:12/06/2000 (1) The following changes of information are prescribed for the purposes of section 63(1)(b) of the Ordinance- (L.N. 88 of 2000) (a) in every case- (i) any change of name or business name; (ii) where there is a change in exchange participantship or membership of any stock or commodity futures exchange in Hong Kong or elsewhere, the details of such changes; (12 of 2000 s. 23) (iii) where the registered person becomes a plaintiff or a defendant in any civil litigation, the particulars of the litigation; (b) in the case of a registered person who is an individual- (i) where he is convicted of an offence other than a traffic offence, particulars of the offence including the penalty imposed; (ii) where he is adjudged civilly liable for any fraud, misfeasance or other misconduct in connection with the formation or management of any corporation, details of the circumstances including the findings; (iii) where he is involved in the affairs of any corporation which is being investigated by an inspector or officer appointed under any enactment, details of the circumstances; (iv) where a bankruptcy petition is served on him, details of the petition; (c) in the case of a registered person which is a corporation- (i) where there is a change of the ultimate holding company, details of the change; (ii) where there is a change in the nominal or issued share capital, details of the change; (iii) where a winding-up petition is served on the corporation, details of the petition; (d) in the case of a registered dealing partnership or investment advisers' partnership, where there is a change in the capital distribution of the partners, details of the change. (2) The following changes of particulars are prescribed for the purposes of section 121Q(1) and (4) of the Ordinance- (a) in the case of a registered financier- (i) any change of business name; (ii) any change of business address; (iii) where there is a change in exchange participantship or membership of any stock exchange in Hong Kong or elsewhere, the details of such changes; (iv) where the registered financier becomes a plaintiff or a defendant in any civil litigation, the particulars of the litigation; (v) where there is a change of the ultimate holding company, details of the change; (vi) where there is a change in the nominal or issued share capital, details of the change; (vii) where a winding-up petition is served on the registered financier, details of the petition; (viii) where an approved director is unable to perform his function, details of the circumstances; (b) in the case of a registered financier's representative, any change in his business address. (L.N. 88 of 2000) (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 7 Change of information VerDate:06/03/2000 The following changes of information are prescribed for the purposes of section 63(1)(b) of the Ordinance- (a) in every case- (i) any change of name or business name; (ii) where there is a change in exchange participantship or membership of any stock or commodity futures exchange in Hong Kong or elsewhere, the details of such changes; (12 of 2000 s. 23) (iii) where the registered person becomes a plaintiff or a defendant in any civil litigation, the particulars of the litigation; (b) in the case of a registered person who is an individual- (i) where he is convicted of an offence other than a traffic offence, particulars of the offence including the penalty imposed; (ii) where he is adjudged civilly liable for any fraud, misfeasance or other misconduct in connection with the formation or management of any corporation, details of the circumstances including the findings; (iii) where he is involved in the affairs of any corporation which is being investigated by an inspector or officer appointed under any enactment, details of the circumstances; (iv) where a bankruptcy petition is served on him, details of the petition; (c) in the case of a registered person which is a corporation- (i) where there is a change of the ultimate holding company, details of the change; (ii) where there is a change in the nominal or issued share capital, details of the change; (iii) where a winding-up petition is served on the corporation, details of the petition; (d) in the case of a registered dealing partnership or investment advisers' partnership, where there is a change in the capital distribution of the partners, details of the change. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 7 Change of information VerDate:30/06/1997 The following changes of information are prescribed for the purposes of section 63(1)(b) of the Ordinance- (a) in every case- (i) any change of name or business name; (ii) where there is a change in membership of any stock or commodity futures exchange in Hong Kong or elsewhere, the details of such changes; (iii) where the registered person becomes a plaintiff or a defendant in any civil litigation, the particulars of the litigation; (b) in the case of a registered person who is an individual- (i) where he is convicted of an offence other than a traffic offence, particulars of the offence including the penalty imposed; (ii) where he is adjudged civilly liable for any fraud, misfeasance or other misconduct in connection with the formation or management of any corporation, details of the circumstances including the findings; (iii) where he is involved in the affairs of any corporation which is being investigated by an inspector or officer appointed under any enactment, details of the circumstances; (iv) where a bankruptcy petition is served on him, details of the petition; (c) in the case of a registered person which is a corporation- (i) where there is a change of the ultimate holding company, details of the change; (ii) where there is a change in the nominal or issued share capital, details of the change; (iii) where a winding-up petition is served on the corporation, details of the petition; (d) in the case of a registered dealing partnership or investment advisers' partnership, where there is a change in the capital distribution of the partners, details of the change. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 8 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 8 Representatives to notify changes of address VerDate:30/06/1997 Any dealer's representative or investment representative who changes his business address shall notify the Commission of the change within 7 days after the change takes place. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 9 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 9 Notice to be in form provided or approved VerDate:12/06/2000 A notice under rules 7 and 8 shall be given in a form provided or approved by the Commission. (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 9 Notice to be in prescribed form VerDate:30/06/1997 A notice under rules 7 and 8 shall be given in the appropriate form prescribed in the Securities (Dealers, Investment Advisers, Partnerships and Representatives) Rules (Cap 333 sub. leg.). (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 10 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 10 Certificate of registration to be exhibited VerDate:12/06/2000 A person who is- (a) a registered person other than a representative; or (b) a registered financier's representative and a director approved under section 121I of the Ordinance, shall exhibit his certificate of registration in a prominent place at his place of business or, if he has more than one place of business, at his principal place of business. (Enacted 1990. L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - RULE 10 Certificate of registration to be exhibited VerDate:30/06/1997 Every registered person other than a representative shall exhibit his certificate of registration in a prominent place at his place of business or, if he has more than one place of business, at his principal place of business. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 11 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 11 Publication in the Gazette VerDate:30/06/1997 (1) Where a mutual fund corporation or unit trust becomes authorized or ceases to be authorized, the Commission shall within 1 month give notice in the Gazette of that fact and, where an authorization applies or used to apply to more than one fund, of the names of the funds. (2) Where an authorization is extended to another fund or ceases to apply to a particular fund, the Commission shall within 1 month give notice in the Gazette of that fact and of the name of the fund. (3) The Commission shall cause to be published in the Gazette, at least once each year, the names of all mutual fund corporations and unit trusts that are authorized and, where an authorization applies to more than one fund, of the names of the funds. (Enacted 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 12 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 12 Form of notice given under section 127(3) of the Ordinance VerDate:30/06/1997 A notice given by an inspector to a prescribed person under section 127(3) of the Ordinance shall be in Form 2 prescribed in the Schedule. (L.N. 356 of 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 13 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 13 Giving of notice VerDate:30/06/1997 A notice to a prescribed person under section 127(3) of the Ordinance may be given- (a) by sending it to the prescribed person by registered post; (b) by delivering it to the prescribed person personally; or (c) by leaving it at the prescribed person's usual or last known place of residence, employment or business with an individual whom the person serving the notice reasonably believes to be able and willing to pass the notice to the prescribed person. (L.N. 356 of 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 14 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 14 Allowances VerDate:30/06/1997 (1) Subject to subrule (2), for the purposes of section 127(10) of the Ordinance a person who attends for examination under section 127 of the Ordinance, whether in one or more cases, is entitled to an allowance not exceeding $90 for each day of attendance. (2) If the period during which the person is necessarily absent from his place of residence, employment or business to attend for examination does not exceed 4 hours, his allowance shall not exceed $45. (L.N. 356 of 1990) SECURITIES (MISCELLANEOUS) RULES - RULE 15 Stock borrowing and lending VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 15 Stock borrowing and lending VerDate:30/06/1997 Section 76 of the Ordinance shall not apply to any transaction that is a stock borrowing or stock return within the meaning of section 19(16) of the Stamp Duty Ordinance (Cap 117). (L.N. 277 of 1991) SECURITIES (MISCELLANEOUS) RULES - RULE 16 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 16 Exchange - traded stock options and settlement of transactions on the Exchange VerDate:30/06/1997 Section 76(1) of the Ordinance shall not apply to any dealing in securities- (a) that is transacted through the facilities of the Unified Exchange; or (b) that arises as a result of a dealing referred to in paragraph (a). (L.N. 397 of 1995) SECURITIES (MISCELLANEOUS) RULES - RULE 17 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 17 Prescribed class of transaction for the purpose of section 80(4)(d) of the Ordinance VerDate:15/11/2002 (1) A sale of any of the following securities, if carried out by a Monetary Authority-appointed market maker, falls within a class of transaction prescribed for the purpose of section 80(4)(d) of the Ordinance- (L.N. 58 of 2001) (a) Exchange Fund Bills; (b) Exchange Fund Notes; (c) specified instruments. (2) A sale of any of the following securities by an agent of a Monetary Authority-appointed market maker shall be a class of transaction prescribed for the purpose of section 80(4)(d) of the Ordinance- (a) Exchange Fund Bills; (b) Exchange Fund Notes; (c) specified instruments, where the agent is acting in such capacity and believes and has reasonable grounds to believe that his principal is a Monetary Authority-appointed market maker of the security sold. (L.N. 144 of 2002) (3) A sale of securities effected in the course of conducting jobbing business as described in subrule (4) shall be a class of transaction prescribed for the purpose of section 80(4)(d) of the Ordinance. (L.N. 144 of 2002) (4) For the purpose of this rule, the following sales of securities shall be regarded as a sale of securities in the course of conducting jobbing business- (a) the sale of a listed security ("A") by a Securities Market Maker for the purpose of hedging the risks of a position previously acquired in another listed security ("B") and- (i) A is a component of B or vice versa; or (ii) where both A and B have a security as a common component; (b) the sale of a listed security ("C") by a Futures Market Maker for the purpose of hedging the risks of a position previously acquired in- (i) a futures contract in respect of C or an index of securities which includes C; or (ii) a futures contract in respect of another security ("D") which has a common component with C; or (c) the sale of a listed security by a Securities Market Maker in performing market making or liquidity providing activities in respect of such security, where the Securities Market Maker acquires the right to vest such security in the purchaser before the end of the trading day following the day of the sale. (L.N. 144 of 2002) (5) For the purpose of subrule (4)- "Futures Exchange Company" (期交所) means the Exchange Company within the meaning of section 2(1) of the Commodities Trading Ordinance (Cap 250); "Futures Market Maker" (期貨莊家) means a person who is registered with the Futures Exchange Company for the purpose of performing, in accordance with rules made by the Futures Exchange Company, market making or liquidity providing activities in respect of futures contracts admitted to trading on the commodity exchange it operates; "listed" (上市) means listed or admitted to trading on the Unified Exchange; "Listing Rules" (《上市規則》) means the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited made by the Exchange Company; "Securities Market Maker" (證券莊家) means a person who is registered with the Exchange Company for the purpose of performing, in accordance with rules made by the Exchange Company, market making or liquidity providing activities in respect of listed securities or an issuer of structured products which are listed on the Unified Exchange under Chapter 15A of the Listing Rules. (L.N. 144 of 2002) (L.N. 216 of 1999) "Futures Exchange Company" (期交所) "Futures Market Maker" (期貨莊家) "listed" (上市) "Listing Rules" (《上市規則》) "Securities Market Maker" (證券莊家) SECURITIES (MISCELLANEOUS) RULES - RULE 17 Prescribed class of transaction for the purpose of section 80(4)(d) of the Ordinance VerDate:26/10/2001 (1) A sale of any of the following securities, if carried out by a Monetary Authority-appointed market maker, falls within a class of transaction prescribed for the purpose of section 80(4)(d) of the Ordinance- (L.N. 58 of 2001) (a) Exchange Fund Bills; (b) Exchange Fund Notes; (c) specified instruments. (2) (a) A sale of shares of Exchange Traded Funds by a market maker in such capacity shall be a class of transaction prescribed for the purposes of section 80(4)(d) of the Ordinance subject to the market maker acquiring on the same day as the sale the right to vest such shares in the purchaser of them, by virtue of- (i) purchasing such shares; (ii) borrowing such shares; or (iii) placing an order for the creation of such shares in accordance with the terms for the creation of shares required by the issuer of those shares. (b) In this subrule- "Exchange Traded Funds" (交易所買賣基金) means mutual funds or unit investment trusts that hold portfolios of securities which are designed generally to correspond to the price and yield performance of the underlying portfolio of securities with in kind creation and redemption facilities and which are listed or traded on the Exchange Company as a single security; "market maker" (市場莊家) means any person who is registered as a market maker by the Exchange Company in accordance with its rules. (L.N. 58 of 2001) (3) (a) A sale of securities carried out by a Stock Options Market Maker for the purpose of hedging the risks of a position previously acquired on the Unified Exchange in options of such securities shall be a class of transaction prescribed for the purposes of section 80(4)(d) of the Ordinance. (b) In this subrule- "Stock Options Market Maker" (股票期權市場莊家) means any person who is registered as a Stock Options Market Maker by the Exchange Company in accordance with its rules. (L.N. 163 of 2001) (4) (a) A sale of securities carried out by a Registered Trader of stock futures contracts for the purpose of hedging the risks of a position previously acquired on the Commodity Exchange in stock futures contracts of such securities shall be a class of transaction prescribed for the purposes of section 80(4)(d) of the Ordinance. (b) In this subrule- "Commodity Exchange" (商品交易所) means the commodity exchange established and operated by the Futures Exchange Company under the Commodities Trading Ordinance (Cap 250); "Futures Exchange Company" (期貨交易所) means the Exchange Company within the meaning of section 2(1) of the Commodities Trading Ordinance (Cap 250); "Registered Trader" (註冊買賣商) means any person who is registered as a Registered Trader by the Futures Exchange Company in accordance with its rules; "stock futures contract" (股票期貨合約) means a stock futures contract of which the contract specifications are set out in the rules of the Futures Exchange Company. (L.N. 163 of 2001) (L.N. 216 of 1999) "Exchange Traded Funds" (交易所買賣基金) "market maker" (市場莊家) "Stock Options Market Maker" (股票期權市場莊家) "Commodity Exchange" (商品交易所) "Futures Exchange Company" (期貨交易所) "Registered Trader" (註冊買賣商) "stock futures contract" (股票期貨合約) SECURITIES (MISCELLANEOUS) RULES - RULE 17 Prescribed class of transaction for the purpose of section 80(4)(d) of the Ordinance VerDate:06/04/2001 (1) A sale of any of the following securities, if carried out by a Monetary Authority-appointed market maker, falls within a class of transaction prescribed for the purpose of section 80(4)(d) of the Ordinance- (L.N. 58 of 2001) (a) Exchange Fund Bills; (b) Exchange Fund Notes; (c) specified instruments. (2) (a) A sale of shares of Exchange Traded Funds by a market maker in such capacity shall be a class of transaction prescribed for the purposes of section 80(4)(d) of the Ordinance subject to the market maker acquiring on the same day as the sale the right to vest such shares in the purchaser of them, by virtue of- (i) purchasing such shares; (ii) borrowing such shares; or (iii) placing an order for the creation of such shares in accordance with the terms for the creation of shares required by the issuer of those shares. (b) In this subrule- "Exchange Traded Funds" (交易所買賣基金) means mutual funds or unit investment trusts that hold portfolios of securities which are designed generally to correspond to the price and yield performance of the underlying portfolio of securities with in kind creation and redemption facilities and which are listed or traded on the Exchange Company as a single security; "market maker" (市場莊家) means any person who is registered as a market maker by the Exchange Company in accordance with its rules. (L.N. 58 of 2001) (L.N. 216 of 1999) "Exchange Traded Funds" (交易所買賣基金) "market maker" (市場莊家) SECURITIES (MISCELLANEOUS) RULES - RULE 17 Prescribed class of transaction for the purpose of section 80(4)(d) of the Ordinance VerDate:13/08/1999 A sale of any of the following securities, if carried out by a Monetary Authority-appointed market maker, falls within a class of transaction prescribed for the purpose of section 80(4)(d) of the Ordinance- (a) Exchange Fund Bills; (b) Exchange Fund Notes; (c) specified instruments. (L.N. 216 of 1999) SECURITIES (MISCELLANEOUS) RULES - RULE 18 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - RULE 18 Classes of persons and circumstances in which certain requirements of section 80B of the Ordinance not to have effect VerDate:15/11/2002 (1) Section 80B(1) of the Ordinance does not have effect in relation to a specified short selling order, which is made by a person, where he is selling as a principal, and who at the time of conveying the short selling order, provides his agent with an oral assurance that the counterparty to the securities borrowing and lending agreement in question has the securities to which the order relates available to lend to him, provided such person- (a) (i) records such oral assurance in the form of a tape recording; (ii) enters into an arrangement with his agent whereby the agent has agreed to- (A) record such oral assurance in the form of a tape recording; or (B) at the time of receiving the short selling order, record the particulars as described in subrule (4) to which the order relates on a time-stamped record; or (iii) confirms the giving of the oral assurance in the form of a document to the agent by the end of the day on which it was given; and (b) complies with the applicable requirements of subrule (5). (2) Section 80B(3) of the Ordinance does not have effect in relation to a specified short selling order, which is made by an exchange participant, where he is selling as a principal, provided such exchange participant- (a) prior to conveying the short selling order- (i) has received from the counterparty to the securities borrowing and lending agreement in question an oral assurance that the counterparty has the securities to which the order relates available to lend to him; and (ii) has- (A) recorded the oral assurance in the form of a tape recording; (B) recorded the particulars as described in subrule (4) to which the order relates on a time-stamped record; or (C) entered into an arrangement with the counterparty whereby the counterparty has agreed to- (I) record the particulars as described in subrule (4) to which the order relates in the form of a document; and (II) provide such document to the exchange participant by the end of the day on which the assurance was given; and (b) complies with the applicable requirements of subrule (5). (3) Section 80B(5) of the Ordinance does not have effect in relation to a specified short selling order, which is made by a person, where he is selling as an agent, provided such person- (a) prior to conveying the short selling order- (i) has received from his principal, or the other person for whose benefit or on whose behalf such order is made (as the case may be) an oral assurance that the counterparty to the securities borrowing and lending agreement in question has the securities to which the order relates available to lend to him; and (ii) has- (A) recorded the oral assurance in the form of a tape recording; (B) recorded the particulars as described in subrule (4) to which the order relates on a time-stamped record; or (C) entered into an arrangement with his principal, or that other person (as the case may be), whereby his principal, or such other person (as the case may be) has agreed to provide a confirmation of the oral assurance in the form of a document to him by the end of the day on which the assurance was given; and (b) complies with the applicable requirements of subrule (5). (4) Particulars required under subrules (1)(a)(ii)(B), (2)(a)(ii)(B) and (C)(I) and (3)(a)(ii)(B) include- (a) the securities or group of securities borrowed under the securities borrowing and lending agreement in question, available for borrowing and the quantity; and (b) whether a blanket assurance or a hold has been given or a borrow has been entered into, and the time it was given or entered into (as the case may be). (5) Any person who records an oral assurance or particulars as described in subrule (4) or who receives a confirmation of an oral assurance in the form of a document (including a tape recording or time-stamped record) under this rule shall- (a) retain such document for not less than one year from the date of recording, collecting or receiving such assurance or particulars (as the case may be); and (b) upon request made by the Commission at any time within that period give the Commission access to and produce the document within the time and at the place specified by the Commission. (6) For the purpose of this rule- "blanket assurance" (概括性保證), in relation to a securities borrowing and lending agreement, means a confirmation from a lender to a borrower that the lender has a sufficient overall supply of a defined group of securities such that for a specific period of time as agreed on by the parties the securities concerned are available to lend to the borrower; "borrow" (借用安排), in relation to a securities borrowing and lending agreement, means a borrowing of securities under the agreement, irrespective of whether the borrowed securities have been delivered by the lender to the borrower; "hold" (持有確認), in relation to a securities borrowing and lending agreement, means a confirmation from a lender to a borrower that for a specific period of time as agreed on by the parties specific securities in a specific quantity are available to lend to the borrower; "securities borrowing and lending agreement" (證券借貸協議) has the meaning assigned to it by section 80A of the Ordinance; "specified short selling order" (指明賣空指示) is an order which is a short selling order within the meaning of paragraph (a)(i) of the definition of "short selling order" in section 80A of the Ordinance. (L.N. 144 of 2002) "blanket assurance" (概括性保證) "borrow" (借用安排) "hold" (持有確認) "securities borrowing and lending agreement" (證券借貸協議) "specified short selling order" (指明賣空指示) SECURITIES (MISCELLANEOUS) RULES - SCHEDULE SCHEDULE (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 SECURITIES (MISCELLANEOUS) RULES - SCHEDULE SCHEDULE VerDate:12/06/2000 [rules 6(4), 6G(4) & 12] (L.N. 88 of 2000) FORM 1 [rule 6(4)] CLAIMS NOTICE SECURITIES ORDINANCE (Chapter 333) SECURITIES (MISCELLANEOUS) RULES NOTICE CALLING FOR CLAIMS AGAINST DEPOSIT LODGED WITH THE SECURITIES AND FUTURES COMMISSION In the matter of ........................................................................... .................................. of ........................................................................... ........................................ in Hong Kong. 1. Notice is hereby given that all persons claiming to have sustained pecuniary loss from a default committed in the course of or in connection with the business of the above-named ....... ........................................................................... .................................................................. of * dealing in securities/providing securities margin financing are required to deliver to the Securities and Futures Commission particulars of their claims in writing on or before the ..................... of ..................... 19 ....... 2. Claims not received by the Commission on or before the date specified in paragraph 1 above will not be admitted and no payment will be made in respect of those claims. Dated this .............. day of ....................... 19....... ................................................... Chairman, Securities and Futures Commission. * Delete as appropriate (L.N. 356 of 1990; L.N. 253 of 1997; L.N. 88 of 2000) FORM 2 [rule 12] SECURITIES ORDINANCE (Chapter 333) SECURITIES (MISCELLANEOUS) RULES INVESTIGATION UNDER SECTION 127(3) NOTICE BY AN INSPECTOR TO A PRESCRIBED PERSON To: ........................................................................... ............................................................ (name of prescribed person) ........................................................................... .................................................................. (address) ........................................................................... .................................................................. WHEREAS I, the undersigned, have been appointed as an inspector by the Securities and Futures Commission under section 127(1) of the Securities Ordinance to investigate- ........................................................................... .................................................................. ........................................................................... .................................................................. (state the matters to be investigated) AND WHEREAS you are a person suspected or believed by me, on reasonable grounds, to be capable of giving information concerning a matter to be investigated by me: I HEREBY GIVE YOU NOTICE in exercise of the powers conferred on me by section 127(3) of the Securities Ordinance requiring you- (a) to produce to me on the .................... day of ......................................................... 19 ............. at ............. o'clock in the ................................................................ at ........................................................................... ........................................................................... ........................................................................... ........................... all documents relating to the matters with which the investigation is concerned as are in your custody or under your control and in particular- ........................................................................... .................................................. ........................................................................... .................................................. (specify the documents) (b) to give to me all reasonable assistance in connection with the investigation; and (c) to appear before me on the ............ day of ...................................................... 19 ......... at ......... o'clock in the .................................................................. at ........................................................................... ........................................... ........................................................................... ........................................... for examination on oath relating to the matters with which the investigation is concerned. ..................................................... ..................................................... (date) (Signed) Inspector Note: Unless there is a reasonable excuse, failure to comply with this Notice, knowingly furnishing to an inspector information that is false or misleading in a material particular, or failure to take an oath required to be taken by an inspector for the purposes of an examination, is an offence punishable by a fine not exceeding $5000. Attention is drawn to sections 126 to 134 of the Securities Ordinance. (L.N. 356 of 1990; L.N. 253 of 1997) FORM 3 [rule 6G(4)] SECURITIES ORDINANCE (Chapter 333) SECURITIES (MISCELLANEOUS) RULES NOTICE CALLING FOR CLAIMS AGAINST SECURITY LODGED WITH THE SECURITIES AND FUTURES COMMISSION In the matter of ........................................................................... ................................... of ........................................................................... ........................................ in Hong Kong. 1. Notice is hereby given that all persons claiming to have sustained pecuniary loss from a default committed in the course of or in connection with the business of the above-named .............................. of providing securities margin financing are required to deliver to the Securities and Futures Commission particulars of their claims in writing on or before the .................... of ........................................ 2. Claims not received by the Commission on or before the date specified in paragraph 1 above will not be admitted and no payment will be paid out of the security lodged in respect of those claims. Dated this .................... day of .................... ......................................................... Chairman, Securities and Futures Commission (L.N. 88 of 2000) SECURITIES (MISCELLANEOUS) RULES - SCHEDULE SCHEDULE VerDate:30/06/1997 [rules 6(4) & 12] FORM 1 [rule 6(4)] CLAIMS NOTICE SECURITIES ORDINANCE (Chapter 333) SECURITIES (MISCELLANEOUS) RULES NOTICE CALLING FOR CLAIMS AGAINST DEPOSIT LODGED WITH THE SECURITIES AND FUTURES COMMISSION In the matter of ........................................................................... .................................. of ........................................................................... ........................................ in Hong Kong. 1. Notice is hereby given that all persons claiming to have sustained pecuniary loss from a default committed in the course of or in connection with the business of the above-named ....... ........................................................................... .................................................................. of dealing in securities are required to deliver to the Securities and Futures Commission particulars of their claims in writing on or before the ..................... of ..................... 19 ....... 2. Claims not received by the Commission on or before the date specified in paragraph 1 above will not be admitted and no payment will be made in respect of those claims. Dated this .............. day of ....................... 19....... ................................................... Chairman, Securities and Futures Commission. (L.N. 356 of 1990; L.N. 253 of 1997) FORM 2 [rule 12] SECURITIES ORDINANCE (Chapter 333) SECURITIES (MISCELLANEOUS) RULES INVESTIGATION UNDER SECTION 127(3) NOTICE BY AN INSPECTOR TO A PRESCRIBED PERSON To: ........................................................................... ............................................................ (name of prescribed person) ........................................................................... .................................................................. (address) ........................................................................... .................................................................. WHEREAS I, the undersigned, have been appointed as an inspector by the Securities and Futures Commission under section 127(1) of the Securities Ordinance to investigate- ........................................................................... .................................................................. ........................................................................... .................................................................. (state the matters to be investigated) AND WHEREAS you are a person suspected or believed by me, on reasonable grounds, to be capable of giving information concerning a matter to be investigated by me: I HEREBY GIVE YOU NOTICE in exercise of the powers conferred on me by section 127(3) of the Securities Ordinance requiring you- (a) to produce to me on the .................... day of ......................................................... 19 ............. at ............. o'clock in the ................................................................ at ........................................................................... ........................................................................... ........................................................................... ........................... all documents relating to the matters with which the investigation is concerned as are in your custody or under your control and in particular- ........................................................................... .................................................. ........................................................................... .................................................. (specify the documents) (b) to give to me all reasonable assistance in connection with the investigation; and (c) to appear before me on the ............ day of ...................................................... 19 ......... at ......... o'clock in the .................................................................. at ........................................................................... ........................................... ........................................................................... ........................................... for examination on oath relating to the matters with which the investigation is concerned. ..................................................... ..................................................... (date) (Signed) Inspector Note: Unless there is a reasonable excuse, failure to comply with this Notice, knowingly furnishing to an inspector information that is false or misleading in a material particular, or failure to take an oath required to be taken by an inspector for the purposes of an examination, is an offence punishable by a fine not exceeding $5000. Attention is drawn to sections 126 to 134 of the Securities Ordinance. (L.N. 356 of 1990; L.N. 253 of 1997)