Hong Kong Regulations

SECURITIES AND FUTURES (INSURANCE) RULES - SCHEDULE 2

SPECIFIED AMOUNT

[section 2]

PART 1

REGULATED ACTIVITIES CARRIED ON IN HONG KONG

1. Where a specified licensed corporation is licensed to carry on in Hong Kong
one regulated activity, the insured amount in respect of a period of insurance
for the specified risks arising out of that regulated activity shall be the
amount specified in column 2 of Part 2 opposite to that regulated activity
which it is licensed to carry on in Hong Kong.

2. Where a specified licensed corporation is licensed to carry on in Hong Kong
more than one regulated activity-

   (a)  if it takes out and maintains a single policy of insurance for the
        specified risks arising out of all those regulated activities, the
        insured amount in respect of a period of insurance for all those
        regulated activities which it is licensed to carry on in Hong Kong
        shall be $25000000;

   (b)  if it takes out and maintains a separate policy of insurance for the
        specified risks arising out of each of those regulated activities, the
        insured amount in respect of a period of insurance for each relevant
        regulated activity shall be the amount specified in column 2 of Part 2
        opposite to that relevant regulated activity which it is licensed to
        carry on in Hong Kong.

3. The insured amount referred to in sections 1 and 2 is the amount of
insurance to be maintained in respect of the aggregate of all claims that may
be made during any period of insurance and, subject to those sections, there
shall be no limit on the amount of each claim.

PART 2

INSURED AMOUNT

Regulated activity Insured amount
($)

1. Dealing in securities 15000000 2. Dealing in futures contracts 15000000 3.
Leveraged foreign exchange trading Nil 4. Advising on securities Nil 5.
Advising on futures contracts Nil 6. Advising on corporate finance Nil 7.
Providing automated trading services Nil 8. Securities margin financing
15000000 9. Asset management Nil

Each of the regulated activities specified in column 1 of this Part shall have
the meaning assigned to it by Part 2 of Schedule 5 to the Ordinance.