Hong Kong Regulations

SECURITIES AND FUTURES (INVESTOR COMPENSATION-CLAIMS) RULES - SECT 7

Determination by Commission

(1) The Commission shall, in relation to a claim for compensation, determine-

   (a)  whether there has been a default by the specified person concerned or
        any associated person of the specified person;

   (b)  the date of the default (if any); and

   (c)  whether the claimant is entitled to compensation from the compensation
        fund.

(2) If the Commission determines that-

   (a)  there has been a default by a specified person or any
        associated person of the specified person; and

   (b)  the claimant is entitled to compensation from the compensation fund,
        the Commission shall determine a provisional amount of compensation in
        accordance with subsection (3).

(3) The provisional amount of compensation referred to in subsection (2) shall
be determined by the Commission having regard to-

   (a)  the market value, as at the date of the default, of the
        specified securities or futures contracts and of any related assets
        that the Commission is satisfied the claimant has lost as a result of
        the default less-

        (i)    any amount that the Commission is satisfied was due from the
               claimant to the specified person; and

        (ii)   any specified securities, futures contracts or related assets
               that have been returned to the claimant after the date of the
               default; and

   (b)  any costs that the Commission is satisfied were reasonably incurred by
        the claimant incidental to the making and proving of his claim for
        compensation under section 4.