1989 Ed.]
Securities
[CAP. 333
97
(5) A person who carries on a business as an insurance underwriter does not contravene subsection (2) by reason only that he takes or uses the title “underwriter" in circumstances that make it clear that he is not holding himself out as being an underwriter within the meaning of section 2.
143. Investment advisory contracts
(1) No investment adviser or investment advisers' partnership shall enter into an investment advisory contract with any person in Hong Kong (in this section referred to as his client), or extend or renew any such contract, or in any way perform any such investment advisory contract entered into, extended, or renewed after the commencement of this section, if the contract- (Amended 58 of 1985 s. 26)
(a) provides for remuneration to be paid by the client to the investment adviser or investment advisers' partnership on the basis of a share of capital gains of the funds or any part of the funds of the client; (Amended 58 of 1985 s. 26)
(b) does not include a provision to the effect that an assignment of the contract by the investment adviser or investment advisers' partnership shall be made only with the consent of the client; or (Amended 58 of 1985 s. 26)
(c) does not include a provision-
(i) if entered into by an investment advisers' partnership, to the effect that the partnership will notify the client of any change in the partners thereof; or
(ii) if entered into by an investment adviser who is a corporation, to the effect that the corporation will notify the client of any change in the directors thereof,
within a reasonable time after the change. (Replaced 58 of 1985 s. 26)
(2) Subsection (1)(a) does not-
(a) prohibit an investment advisory contract which provides for remuneration based on the total value of a fund averaged over a definite period, or on definite dates, or taken on a definite date; or
(b) apply to an investment advisory contract with the manager or other representative of a unit trust or mutual fund corporation authorized by the Commission for the purposes of this Ordinance, or a company carrying on business as an investment company and registered under the Companies Ordinance (Cap.32), which contract provides for remuneration based on the asset value of the trust, corporation, or company under management averaged over a specified period and increasing and decreasing proportionately in accordance with the performance of the trust, corporation, or company over a specified period in relation either to-