2
4.
In view of the need to continue to improve the
quality and standard of stockbroking activities, the Bill
introduces new and important experience, qualification and
financial requirements for dealers.
5.
Dealers will be required either to have at least
three years' experience in dealing in securities in Hong
Kong or on any recognised overseas stock market, or have
passed a professional examination approved by the Securities
Commission.
6.
the
All dealers will be required to comply with
certain minimum financial requirements. First, individual
dealers and dealing corporations must maintain in the
stockbroking business a minimum net capital of $1 million
and $5 million respectively. For dealing partnerships,
minimum net capital requirement will be calculated according
to the number and type of registered dealers in the
partnership. Second, a minimum liquidity margin - 10% of
the minimum net capital requirement
-
will have to be
maintained. A Schedule of approved assets and ranking
liabilities for the purpose of calculating the net capital
and the liquidity margin will be prescribed by the
Securities Commission.