Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (ACCOUNTS AND AUDIT) RULES - SCHEDULE SCHEDULE

Caution: This is a past version. See the current version here.

[section 2]

PART 1

.......................................................... (Name of licensed
leveraged foreign exchange trader)

Profit and Loss Account for the year / period ended ....................

Current Year
/ Period
Last Year
/ Period REVENUE Commission and brokerage from leveraged foreign exchange
trading Fee income-

   (a)  leveraged foreign exchange trading

   (b)  others Profit / (Loss) on trading in foreign currencies Dividends and
        interest on investments Interest from-

   (a)  clients

   (b)  authorized institutions

   (c)  others Other revenue (supply details) ___________ __________
...................... .................... EXPENSES Directors' emoluments-

   (a)  fees

   (b)  other emoluments Salaries and allowances 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 / PERIOD BEFORE TAXATION

TAXATION ___________ __________ NET PROFIT / (LOSS) FOR THE YEAR / PERIOD
AFTER TAXATION BALANCE BROUGHT FORWARD ___________ __________ PROFIT AVAILABLE
FOR DISTRIBUTION PROPOSED DIVIDENDS ___________ __________ BALANCED CARRIED
FORWARD
===========
========== (Enacted 1994)

PART 2

...........................................................................
............. (Name of licensed leveraged foreign exchange trader) Balance
Sheet As At .............................

Current Year
/ Period Last Year
/ Period
Cost Depre-
ciation Bal-ance

FIXED ASSETS Immovable property-

   (a)  in Hong Kong

   (b)  outside Hong Kong Other fixed assets ___ _____ ___
=== ===== === Long term unlisted investments Other assets (supply details)

CURRENT ASSETS

Listed investments State the basis of valuation

(if at cost, state also the market value)-

   (a)  in Hong Kong

   (b)  outside Hong Kong Other debt securities

Note 2 Amounts receivable arising in the ordinary course of business of
leveraged foreign exchange trading-

   (a)  clients

   (b)  recognized counterparties that are authorized institutions

   (c)  recognized counterparties that are not authorized institutions LESS:
        Provision for bad and doubtful debts

Note 2 Other amounts receivable-

   (a)  secured

   (b)  unsecured LESS: Provision for bad and doubtful debts Payments in
        advance Utility, rent and other deposits Cash in hand Cash at
        authorized institutions-

   (a)  segregated trust accounts

   (b)  other accounts Other current assets (supply details) ______________
        __________
............................ ....................

DEDUCT: CURRENT LIABILITIES

Notes 2 & 3 Amounts payable arising in the ordinary course of business of
leveraged foreign exchange trading-

   (a)  clients

   (b)  recognized counterparties that are authorized institutions

   (c)  recognized counterparties that are not authorized institutions

Note 2 Other amounts payable-

   (a)  secured

   (b)  unsecured

Note 2 Bank loans and overdrafts-

   (a)  secured

   (b)  unsecured
Accrued expenses
Proposed dividends
Taxation

Note 2 Other liabilities (supply details) ______________ __________

............................
______________
....................
__________
NET CURRENT
ASSETS / (LIABILITIES) ______________ __________
LONG TERM LIABILITIES (supply details) ============== ==========
Representing
SHARE CAPITAL - Authorized Issued and fully paid-up
==============
==========
CAPITAL RESERVES
OTHER RESERVES
PROFIT AND LOSS ACCOUNT ______________ __________
============== ==========

NOTES TO THE ACCOUNTS

1. Distinguish balances due to or from-

   (a)  a director

   (b)  a related corporation

2. Where any amount is secured, specify by way of note the following
particulars-

   (a)  name(s) 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, market value and the identity of the owner of the security

3. Where there are any outstanding contracts relating to leveraged foreign
exchange trading with clients, specify the following particulars for each of
those client account-

   (a)  name, account number, or account code of client

   (b)  3% of the aggregate gross principal value of all outstanding contracts
        relating to leveraged foreign exchange trading in all foreign
        currencies other than currency linked to Hong Kong currency

   (c)  cash margin (in Hong Kong currency or currency linked to Hong Kong
        currency) received from the client plus accrued interest payable and
        floating profits due to the client less accrued interest, fees and
        commissions receivable and floating losses due from the client

   (d)  other margin received from the client as calculated in accordance with
        section 6(2)(b) to (g) of the Leveraged Foreign Exchange Trading 
        (Financial Resources) Rules ( Cap 451 sub. leg.)

4. Computation of issued and paid up share capital

Current
Year / Period
Last
Year / Period Issued and paid up non-redeemable share capital Approved
redeemable share capital Deficits in profit and loss account and other
reserves ___________ __________ Share capital less deficits in reserves
Required issued and paid up share capital ___________ __________ Excess /
(Deficiency)
===========
========== 5. Assets, liabilities and commitments in foreign currencies-

   (a)  total assets, other than fixed assets, in foreign currency included in
        the Balance Sheet

   (b)  total liabilities in foreign currency included in the Balance Sheet

   (c)  total commitments to purchase foreign currency under foreign exchange
        agreements

   (d)  total commitments to sell foreign currency under foreign exchange
        agreements

   (e)  total commitments to purchase foreign currency under options contracts

   (f)  total commitments to sell foreign currency under options contracts

   (g)  total commitments to purchase foreign currency under futures contracts

   (h)  total commitments to sell foreign currency under futures contracts

   (i)  other commitments

6. Contingent liabilities and capital commitments-

Current
Year / Period
Last
Year / Period

   (a)  contingent liabilities-

        (i)    secured (supply details) exchange trading

        (ii)   unsecured (supply details)

   (b)  capital commitments (supply details) ___________ __________
=========== ==========
Current
Year / Period Last
Year / Period 7. Value of any guarantee provided by the licensed leveraged
foreign exchange trader
===========
========== (Enacted 1994)