Hong Kong Regulations

SECURITIES AND FUTURES (CONTRACT NOTES, STATEMENTS OF ACCOUNT AND RECEIPTS) RULES - SECT 13

Preparation and provision of receipts

Division 3-Receipts

(1) Subject to subsection (2), on each occasion that-

   (a)  an intermediary receives any-

        (i)    client assets; or

        (ii)   security provided in relation to a margined transaction (to the
               extent that such security is not client assets); or

   (b)  an associated entity of an intermediary receives any client assets,
        from or on behalf of a client of the intermediary, the intermediary or
        associated entity (as the case may be) shall-

   (c)  prepare a receipt in accordance with subsection (3); and

   (d)  provide the receipt to the client no later than the end of the second
        business day after receiving the client assets or security.

(2) This section does not apply in any of the following circumstances-

   (a)  where client money is received by-

        (i)    an intermediary that is a registered institution; or

        (ii)   an associated entity that is an authorized financial
               institution;

   (b)  where client money is deposited directly into-

        (i)    the bank account of a licensed corporation; or

        (ii)   the bank account of an associated entity that is not an
               authorized financial institution, by the client of the
               intermediary or on behalf of the client by any person other
               than the intermediary or associated entity;

   (c)  where a contract note that is provided to the client under section 5,
        or a statement of account that is provided to the client under
        section 8 or 9 (or any consolidated document that is provided to the
        client under section 6 or 10), expressly states that it also serves as
        a receipt and includes the information specified in subsection
        (3)(d)(i) and

        (ii)   ;

   (d)  where scrip is deposited directly with the scrip custodian of an
        intermediary or an associated entity of an intermediary, by the client
        of the intermediary or on behalf of the client by any person other
        than the intermediary or associated entity, and the scrip custodian
        has issued a receipt to the client; or

   (e)  where securities in a scripless form are transferred to an account
        maintained with a custodian of-

        (i)    an intermediary; or

        (ii)   an associated entity of an intermediary, by or on behalf of the
               client.

(3) A receipt referred to in subsection (1) shall include the following
information-

   (a)  the name under which the intermediary or associated entity (as the
        case may be) carries on business;

   (b)  the date on which the receipt is prepared;

   (c)  the name and account number of the client; and

   (d)  in respect of the client assets or security received-

        (i)    the quantity, description and such other particulars of the
               client assets or security as are sufficient to enable them to
               be identified;

        (ii)   the account into which they have been deposited; and

        (iii)  the date on which they were received.