Hong Kong Regulations

SECURITIES AND FUTURES (CONTRACT NOTES, STATEMENTS OF ACCOUNT AND RECEIPTS) RULES - SECT 8

Preparation and provision of daily statements of account relating to financial accommodation

(1) Subject to section 10, where an intermediary provides financial
accommodation to a client and any event specified in subsection (3) takes
place in relation to the client, it shall-

   (a)  prepare a statement of account in respect of the client in accordance
        with subsection (2); and

   (b)  provide the statement of account to the client no later than the end
        of the second business day after the event takes place, or in the case
        of an event specified in subsection (3)(a)(iii) or (b)(iii), after the
        intermediary becomes aware that the event has taken place.

(2) A statement of account referred to in subsection (1) shall include the
information required to be included under section 7 and, to the extent
applicable, the following information relating to the account of the client on
the day on which the event takes place-

   (a)  the outstanding balance of that account as at the beginning and as at
        the end of that day and details of all movements in the balance of
        that account during that day;

   (b)  the quantity, and, in so far as readily ascertainable, the market
        price and market value of each description of client securities and
        collateral held for that account as at the end of that day;

   (c)  the margin ratio and margin value of each description of securities
        collateral held for that account as at the end of that day;

   (d)  details of all movements of client securities and collateral held for
        that account during that day, including the quantity of each
        description of client securities and collateral deposited in or
        withdrawn from that account during that day;

   (e)  details of all disposals initiated by the intermediary of client
        securities and collateral held for that account during that day and
        what happened to the proceeds of those disposals;

   (f)  details of all income credited to and charges levied against that
        account during that day; and

   (g)  details of all financial accommodation provided to the client during
        that day, including the nature, credit limit and expiry date of the
        accommodation and the basis for calculation of interest charges
        thereon.

(3) The following events are specified for the purpose of subsections (1) and
(2)-

   (a)  a deposit of client assets by or on behalf of the client of the
        intermediary with-

        (i)    the intermediary;

        (ii)   an associated entity of the intermediary; or

        (iii)  any other person;

   (b)  a withdrawal of client assets by or on behalf of the client of the
        intermediary from-

        (i)    the intermediary;

        (ii)   an associated entity of the intermediary; or

        (iii)  any other person;

   (c)  a disposal initiated by the intermediary of any client securities and
        collateral held for the account of the client; or

   (d)  an adjustment by the intermediary to the account of the client
        comprising-

        (i)    an adjustment of the amount of financial accommodation;

        (ii)   a credit to the account, including any credit to the account of
               income except as a result of accrual of interest paid by the
               intermediary or an associated entity of the intermediary; or

        (iii)  a debit from the account, including any deduction of charges
               from the account except as a result of accrual of interest
               charged by the intermediary or an associated entity of the
               intermediary.