Hong Kong Regulations

SECURITIES AND FUTURES (INVESTOR COMPENSATION-LEVY) RULES - SECT 26

Commission to publish termination of exemption notice

(1) Subject to subsection (3), where—

   (a)  the auditor’s report prepared under section 240 of the Ordinance or
        section 24(2) confirms (whether expressly or impliedly and whether by
        reference to any financial statement attached to it or otherwise) that
        the net asset value of the compensation fund is below $1000000000; and

   (b)  the Commission has published an exemption notice under section  25 (1)
        but has not published a termination of exemption notice relating to it
        under this subsection, the Commission shall by a
        termination of exemption notice published in the Gazette specify a
        termination date for the exemption notice, which date shall not be
        earlier than 2 months after the date of publication of the
        termination of exemption notice in the Gazette.

(2) The publication of a termination of exemption notice shall not revive the
obligation to pay any levy which has been declared to be not payable by the
exemption notice relating to it.

(3) Subject to subsection (4), the Commission may, after consultation with the
Financial Secretary, refrain from publishing a termination of exemption notice
under subsection (1) if it has reason to believe that the net asset value of
the compensation fund will exceed $1400000000 within 6 months from the date of
receiving the auditor’s report.

(4) The Commission having refrained from publishing a termination 
of exemption notice is required to ascertain the net asset value of the
compensation fund and if the Commission subsequently reasonably considers that
the net asset value of the compensation fund will not exceed $1400000000
within the 6 month period, it shall proceed to publish the
termination of exemption notice.

(5) A termination of exemption notice is not subsidiary legislation. (Part 5
added L.N. 108 of 2005)