Hong Kong Regulations

SECURITIES AND FUTURES (CLIENT MONEY) RULES - SECT 3

Application

(1) Subject to subsections (2) and (3), these Rules apply to client money of a
licensed corporation that is received or held by or on behalf of-

   (a)  the licensed corporation, in the course of the conduct of any
        regulated activity for which the licensed corporation is licensed; or

   (b)  an associated entity of the licensed corporation, in relation to such
        conduct of the regulated activity.

(2) These Rules do not apply to client money of a licensed corporation that-

   (a)  is received or held outside Hong Kong by the licensed corporation or
        an associated entity of the licensed corporation, while that client
        money remains outside Hong Kong; or

   (b)  has at any time been received or held in Hong Kong by the licensed
        corporation or an associated entity of the licensed corporation, once
        that client money is transferred outside Hong Kong in accordance with
        these Rules.

(3) These Rules do not apply to client money of a licensed corporation that is
in a bank account established and maintained by a client of the licensed
corporation in that client's name.