Power of
CommbelonET
La appoin Auditor.
Power of Canarisaloner
LO BAI Ad auditor
on application
of clear.
26
(b) discovers evidence of a contravention by the dealer of section
45 or 46.
he shall, as soon as practicable thereafter, send to the Commissioner and to the dealer a report in writing of the matter or, as the case may be, the contravention.
52. (1) Where-
(a) = dealer fails to lodge an auditor's report under section 30; or (b) the Commissioner receives a report under section 51,
the Commissioner may, if he is satisfied that it is in the interçats of the dealer, dealer's clients, or general public, to do so, appoint in writing an auditor to examine and audit, either generally or in relation to any particular marter, the books, accounts and records of the dealer.
(2) Where the Commissioner is of the opinion that the whole or any part of the costs and expenses of an auditor appointed by him under subsection (1) should be borne by the dealer, the Commissioner may, by order in writing, direct the dealer to pay a specified amount, being the whole or part of auch costs and expenses, within the time and in the manner specified.
(3) Where a dealer fails to comply with an order under subsection (2), the amount specifled in the order may be sued for and recovered by the Commissioner as a debt in a court.
$3. (1) On receipt of an application in writing from a client who alleges that a dealer has failed to account to him in respect of any money held or received, or any futures contract bought or sold by the dealer for him or on his behalf, the Commissioner may, after Brst giving the dealer an opportunity to give an explanation of the failure, appoint in writing an auditor to examine and audit, eilber generally or in relation to any particular matter, the books, accounts and records of that dealer,
(2) Every application under subsection (1) shall state-
(a) the particulars of the circumstances in respect of which the
dealer is alleged to have failed to account;
(b) the particulars of the moneys and the dealings in futures coo-
tracts in respect of which the failure had occurred; and
(c) such other particulars as the Commissioner may require.
(3) The statements in an application under subsection (1) shall be verified by a statutory declaration made by the applicant and shall, if made in good faith and without malice, be privileged.
(4) The Commissioner shall not appoint an auditor under subsection (1) unless he is satisfied that
(a) the applicant has a good reason for making the application; and (3) it is in the interests of the dealer, applicant or general public that the books, accounts and records of the dealer should be examined, audited and reported on.
(1) Where the Commissioner is of the opinion that the whole or any part of the costs and expenses of an auditor appointed by him under subsection (1) should be borne by the dealer or applicant, the Commis- sioner may, by order in writing, direct the dealer or applicant to pay a specified amount, being the whole or part of such costs and expenses, within the time and in the manner specified.
27
(6) Where a dealer or applicant fails to comply with an order ander subsection (5), the amount specified in the order may be sued for and recovered by the Commissioner as a debt in a court
54. An auditor appointed under section 52 or 53 shall, on the con- Auditor te clusion of the examination and audit in respect of which he was appointed, repon to the make a report thereon to the Commissioner.
55. (1) An auditor appointed under section 52 or 53 to examine and audit the books, accounts and records of a dealer may for the purpose of carrying out the examination and audit-
(e) examine on oath the dealer and, where the dealer is a corpora- tion or firm, any director of the corporation or partner of the firm, as the case may be, and any of the dealer's employees and agents and any other auditor appointed under this Ordinance in relation to those books, accounts and records:
(b) require the dealer and, where the dealer is a corporation or firm, any director of the corporation or partner of the firm, as the case may be, and the dealer's employees and agents, to produce any books, accounty and records held by or on behalf of the dealer relating la his business;
(e) require an auditor appointed by the dealer to produce any booki, accounts and records held by him relating to the business of the dealer;
(d) require the Clearing House to produce any books, accounts and
records kept by it relating to the business of the dealer;
(e) require the Clearing How to provide any information in its
possession relating to the business of the dealer:
(1) employ such persons as be considers necessary to assist him to
carry out the examination and audit; and
(g) by instrument in writing under his hand, authorize any person employed by him to do, in relation to the examination and audit, any act or thing that he could do himself as an auditor, excopt the examination of attry person on path, under this subsection.
(2) Any person who, without reasonable excuse, refuses or fails to answer any question pul to him, or fails to comply with any request made to him, by an auditor appointed under section $2 or 53 or person authorized under subsection (1Xg) shall be guilty of an offence and thall be liable on conviction to à fiue of $10,000 and to imprisonment for 2 years.
(3) If the Clearing House, without reasonable excuse, fails to comply with any request made to it by an auditor appointed under section 52 or 53 or person authorized under subsection (1Kg), the Clearing House shall be guilty of an offence and shall be liable on conviction to a fine of $50,000.
CommonksionST.
Powers of doi
unpainted
by the Counselconer.
56. (1) Any person who, with intent to prevent, delay or obstruct the gears to carrying out of any examination and audit under this Part-
Kleury, aber, etc.
(a) destroys, conccala or alters any book, account or record relating records.
to the business of a dealer; or
(6) sends or conspires with any other person to send, out of Hong Kong any such book, account or record, or any property of any description belonging to or in the possession or under the control of a dealer.
shall be guilty of an offence and shall be liable on conviction upon indict- ment to a fine of $50,000 and to imprisonment for 2 years.