Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (BOOKS, CONTRACT NOTES AND CONDUCT OF BUSINESS) RULES - SECT 6

Statement of client information

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

(1) A licensed trader shall obtain from each of its clients a written
statement which contains the following information about that client-

   (a)  the name, address, telephone number and facsimile number, if any, of
        the client;

   (b)  (i) in the case of an individual, details of that individual's Hong
        Kong identity card or, if the client is not the holder of an identity
        card, details of his passport, travel or other document issued by a
        competent government agency providing proof of identity;

        (ii)   in the case of a corporation, details of its certificate of
               incorporation or similar document issued by the relevant
               authority of the country of incorporation;

        (iii)  in the case of a partnership, details of its business
               registration certificate or similar document issued by the
               relevant authority of the country where the partnership was
               formed or, where not available, the partnership agreement or
               other document constituting the partnership;

   (c)  (i) in the case of an individual, his occupation, position and years
        spent in that occupation;

        (ii)   in the case of a corporation, the type of business and the
               number of years in the business;

        (iii)  in the case of a partnership, the type of business and the
               number of years in that business;

   (d)  details of the financial position of the client; and

   (e)  details of the client's investment objectives and strategy.

(2) Where a client has appointed another person to trade on his behalf, the
licensed trader shall obtain the information required in subsection (1)(a),
(b) and (c) in relation to that person and a statement of his relationship
with the client.

(3) A licensed trader shall obtain from each of its clients, and from any
person who is authorized by the client to trade on his behalf, a written
declaration to the effect that-

   (a)  the statement provided under subsection (1) is true, complete and
        correct; and

   (b)  the client and the authorized person will notify the licensed trader
        of any material changes to that information.

(4) A sole proprietor shall, notwithstanding that he is trading in the name of
his firm, be deemed to be trading as an individual for the purposes of these
provisions. (Enacted 1994)