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FRIDAY, SEPTEMBER 20, 1974
ALL DEALERS, INVESTMENT ADVISERS MUST BE REGISTERED
BY JANUARY 1 NEXT YEAR
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THE FIRST SET OF REGULATIONS TO BE MADE UNDER THE SECURITIES ORDINANCE WERE PUBLISHED IN THE GAZETTE TODAY AND WILL COME INTO OPERATION FROM OCTOBER 1.
THE REGULATIONS COVER THE REGISTRATION OF DEALERS, INVESTMENT ADVISERS AND REPRESENTATIVES AND ARE CONSIDERED AMONG THE MOST
IMPORTANT THAT WILL HAVE TO BE MADE UNDER THE ORDINANCE.
AMONG OTHER THINGS, THE REGULATIONS STIPULATE THAT ALL DEALERS AND THEIR REPRESENTATIVES, WHETHER OR NOT THEY ARE MEMBERS OF OR ASSOCIATED WITH THE STOCK EXCHANGES, MUST BE REGISTERED. THIS ALSO APPLIES TO INVESTMENT ADVISERS AND THEIR REPRESENTATIVES.
THE ANNUAL REGISTRATION FEES ARE $100 FOR A REPRESENTATIVE, $200 FOR AN INDIVIDUAL DEALER OR INVESTMENT ADVISER AND $500 FOR A CORPORATION. IF A DEALER ALSO WISHES TO REGISTER AS AN INVESTMENT ADVISER, OR VICE VERSA, THE ADDITIONAL FEE WILL BE HALVED $100 INSTEAD OF THE NORMAL $200.
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ANOTHER PROVISION IS THAT A DEALER WHO IS NOT A MEMBER OF A STOCK EXCHANGE WILL BE REQUIRED TO DEPOSIT $50,000 WHICH CAN BE USED FOR THE BENEFIT OF A DEALER'S CLIENTS IN THE EVENT OF HIS DEFAULT. MEMBERS OF STOCK EXCHANGES ARE EXEMPT FROM THIS PROVISION AS THEY ARE COVERED UNDER THE STOCK EXCHANGES COMPENSATION FUND TO WHICH THEY HAVE ALREADY CONTRIBUTED IN ACCORDANCE WITH THE ORDINANCE.
A SPOKESMAN FOR THE SECURITIES COMMISSION SAID TODAY THAT THE REGULATIONS MERELY FORMALISED THE POLICY LAID DOUN IN THE SECURITIES ORDINANCE WHICH WAS APPROVED BY THE LEGISLATIVE COUNCIL IN FEBRUARY THIS YEAR.
HE SAID THAT ANY PERSON WHO IS OBLIGED TO BE REGISTERED UNDER THE ORDINANCE MUST MAKE HIS APPLICATION WITHIN THREE MONTHS FROM OCTOBER 1.
+HAVING MADE AN APPLICATION A PERSON OR COMPANY MAY CONTINUE TO CARRY ON THE RELEVANT BUSINESS AND IN DUE COURSE THEY WILL BE
INFORMED WHETHER THE APPLICATION HAS BEEN ACCEPTED OR REFUSED. IN THE UNLIKELY EVENT OF A REFUSAL, THERE IS A RIGHT OF APPEAL,+ THE SPOKESMAN ADDED.
TO FACILITATE THE ADMINISTRATIVE WORK, ARRANGEMENTS HAVE BEEN MADE WITH THE FOUR STOCK EXCHANGES REGARDING THE TIMING OF APPLICATIONS FROM THEIR MEMBERS.
/IT IS