3
2
(2)
(b)
(c)
Under Clauses 4 to 7, it is proposed
that a partnership must be properly
registered under Cap. 38 and every partner must be a registered dealer (except in the case of limited partnership the details of which have been disclosed to the registrar).
For the new category of membership, i.e., corporations, a corporation has to be properly registered under the Companies Ordinance or for an overseas company, it must have complied with the provision of Part XI of the Companies Ordinance, and every dealing director
must be a registered dealer.
Imposing more stringent financial requirements
For a
(a) Under Clause 48 of the bill, individual
dealers must satisfy a financial requirement of HK$1 million and corporation must meet the requirement of HK$5 million as its capital. partnership the minimum net capital requirement will be calculated according to the member and type of
registered dealers in the partnership.
(b) Under Clause 49 each trading entity
must maintain a liquidity margin, i.e.
10% of the net capital requirement
under a schedule of approved assets and ranking liabilities prescribed by the Securities Commission to calculate its
net capital and liquidity margin
requirements.