Hong Kong Regulations

SECURITIES AND FUTURES (CLIENT SECURITIES) RULES - SECT 10

Limitations on the treatment of client securities and securities collateral

PART 3

MISCELLANEOUS

(1) An intermediary or an associated entity of an intermediary must take
reasonable steps to ensure that client securities and securities collateral of
the intermediary are not-

   (a)  deposited;

   (b)  transferred;

   (c)  lent;

   (d)  pledged;

   (e)  repledged; or

   (f)  otherwise dealt with, except as provided in Part 2.

(2) Subsection (1) does not require the intermediary or associated entity in
question to ensure that the client securities or securities collateral in
question are not-

   (a)  deposited;

   (b)  transferred;

   (c)  lent;

   (d)  pledged;

   (e)  repledged; or

   (f)  otherwise dealt with, by a person to whom the intermediary or
        associated entity has lent or with whom the intermediary or associated
        entity has deposited any of the client securities or securities
        collateral in accordance with Part 2.