(12 of 1974)
Securities Ordinance 1974 or who is a dealer exempted from registration under that Ordinance;
(ii) by or on behalf of a corporation to bolders of securities or creditors of, or servants or agents employed by, that corporation, or a corporation which is deemed to be related to that corporation by virtue of section 4 of the Securities Ordinance 1974, in respect of securities of that corporation or that related corporation:
(iii) by or on behalf of the manager or trustee of a unit trust authorized by the Commission pursuant to the Securities Ordinance 1974 to holders of units, or creditors, of the trust, or to servants or agents employed by that manager or trustee;
(iv) by or on behalf of the Government in respect of securities issued by it,
(v) by or on behalf of a credit union in respect of shares in the union:
(vi) by or on behalf of a person acting as trustee of a trust (not being a unit trust) to beneficiaries under the trust; or
(vii) with respect to securities intended to be disposed of to persons outside Hong Kong or to be disposed of in Hong Kong only to persons whose business involves the acquisition, disposal, or holding of securities, whether as principal or as agent; or
(b) that it is or contains an advertisement or invitation which a person who is engaged in the business of buying and selling property other than securities (either as principal or as agent) may make or give in the ordinary course of that business; but nothing in this paragraph authorizes any person to do anything pursuant to or for the purpose of any investment arrangements in respect of any such property.
(4) Subject to the provisions of this section, any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction on indictment to a fine of $500,000 and to imprisonment for 3 years.
(5) A person shall not be taken to contravene this section by reason only that he-
(a) issues, or has in his possession for the purposes of issue, to purchasers copies of any newspaper, journal, magazine, or other periodical publication of gencral and
regular circulation, which contain an invitation to which this section relates; or
(b) issues advertisements which are or contain, or issues or has in his possession for the purposes of issue docu- ments which contain, invitations to which this section relates to persons who are dealers or investment advisers registered under the Securities Ordinance 1974 or who (12 of 1934) are exempted from registration under that Ordinance. (6) For the purposes of any proceedings under this section, an advertisement, invitation, or document which is or contains an advertisement or invitation to enter into or offer to enter into any agreement referred to in section 3(1) with a person specified in the advertisement, invitation, or document shall, subject to subsection (5), be presumed, unless he proves to the contrary, to have been issued by him.
(7) For the purposes of subsection (2)(g), the Commission may in authorizing the issue of any advertisement, invitation, or document impose such conditions as it thinks fit.
5.
(1) A person shall not-
Offence La issue adver
(d)
issue, or have in his possession for the purposes of tisement issue, any advertisement in which to his knowledge a relating person other than an investment adviser registered under investment the Securities Ordinance 1974 bolds himself out as manage being prepared-
to an
meat busi- mess unless (1) to give investment advice in return for remunera- registered. tion; or
(12 of 1974)
(ii) to undertake for remuneration the management of investors' portfolios of securities; or
(b) issue or have in his possession for the purposes of issue any document which to his knowledge contains such an advertisement.
(2) Any person who contravenes subsection (1) shall be guilty of an offence, and shall be liable on conviction to a fine of $10,000.
(3) A person shall not be taken to contravene this section by reason only that be-
(a) issues, or has in his possession for the purposes of issue, to purchasers copies of any newspaper, journal, magazine, or other periodical publication of general and