Hong Kong Regulations

SECURITIES AND FUTURES (CLIENT MONEY) RULES - SECT 12

Penalties

(1) A licensed corporation, or an associated entity of a licensed corporation,
which, without reasonable excuse, contravenes section 4 or 5 commits an
offence and is liable-

   (a)  on conviction on indictment to a fine of $200000 and to imprisonment
        for 2 years; or

   (b)  on summary conviction to a fine at level 6 and to imprisonment for 6
        months.

(2) A licensed corporation, or an associated entity of a licensed corporation,
which, with intent to defraud, contravenes section 4 or 5 commits an offence
and is liable-

   (a)  on conviction on indictment to a fine of $1000000 and to imprisonment
        for 7 years; or

   (b)  on summary conviction to a fine of $500000 and to imprisonment for 1
        year.

(3) A licensed corporation, or an associated entity of a licensed corporation,
which, without reasonable excuse, contravenes section 6, 8(4), 10 or 11
commits an offence and is liable on conviction to a fine at level 3.

(4) A licensed corporation, or an associated entity of a licensed corporation,
which, with intent to defraud, contravenes section 6, 8(4), 10 or 11 commits
an offence and is liable on conviction to a fine at level 6.

(5) In deciding whether or not a payment of client money under section 4(5)(a)
or 5(2)(a) would be unconscionable, the court shall have regard to the factors
specified in section 6 of the Unconscionable  Contracts Ordinance ( Cap 458),
as if the standing authority in question were a contract under that Ordinance.