FRIDAY, JULY 12, 1985
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*FOR DEALING PARTNERSHIPS, THE REQUIREMENT WILL BE CALCULATEJ ALCORDING TO THE NUMBER AND TYPE OF MEMBERS IN THE PARTNERSHIP. 1.. ADDITION, THEY WILL BE REQUIRED TO MAINTAIN AT ALL TIMES IN THE BUSINESS A LIQUIDITY MARGIN OF NOT LESS THAN 10 PER CENT OF THE MINIMUM NET CAPITAL REQUIREMENT,+ THE SPOKESMAN SAID.
HE ADDED THAT THESE FINANCIAL REQUIREMENTS, SPECIFIED UNDER A SECURITIES (AMENDMENT) BILL 1985, WOULD BE EXTENDED TO ALL REGISTERED DEALERS, WHETHER OR NOT THEY ARE MEMBERS OF THE UNIFIED EXCHANGE.
THE EXCHANGE COMPANY WILL HAVE A STATUTORY DUTY TO ENSURE THAT ITS MEMBERS COMPLY WITH THE FINANCIAL REQUIREMENTS AND MAY MAKE RULES TO FULFIL THIS DUTY.
THE BILL ALSO PROVIDES FOR THE EXCHANGE COMPANY TO ALTER ITS CONSTITUTION TO AVOID CONFLICT WITH THE NEW MEMBERSHIP PROVISIONS AND TO PROVIDE FOR TRANSITIONAL ARRANGEMENTS.
THE SECURITIES (AMENDMENT) BILL 1985, ALSO PUBLISHED TODAY FOLLOWING ENDORSEMENT BY THE EXECUTIVE COUNCIL, ARISES FROM RECOMMENDATIONS BY THE SECURITIES COMMISSION TO CHANGE THE POLICY ON THE REGISTRATION OF DEALERS IN SECURITIES.
PART 3 OF THE BILL ALSO CONTAINS CONSEQUENTIAL AMENDMENTS TO THE SECURITIES ORDINANCE AS A RESULT OF INCORPORATING THE FIRST SCHEDULE TO THE EXISTING STOCK EXCHANGES UNIFICATION ORDINANCE.
+THE EXECUTIVE COUNCIL HAS EARLIER DECIDED THAT THERE SHOULD BE THREE TYPES OF TRADING ENTITY IN THE UNIFIED EXCHANGE, NAMELY INDIVIDUAL DEALERS, CORPORATE DEALERS AND DEALING PARTNERSHIPS, AND THAT EACH TRADING ENTITY MUST COMPLY WITH A MINIMUM NET CAPITAL AND A LIQUIDITY MARGIN REQUIREMENT.
+GIVEN THIS DECISION, THE COMMISSION HAS RECOMMENDED THAT ALL THREE TRADING ENTITIES SHOULD BE REQUIRED TO REGISTER AND BE SUBJECT TO NEW REGISTRATION REQUIREMENTS,+ THE SPOKESMAN SAID.
THE PRE-REQUISITES FOR AN INDIVIDUAL TO REGISTER AS A DEALER ARE THAT HE MUST BE OF GOOD CHARACTER AND INTEGRITY, HAVE NOT LESS THAN THREE YEARS EXPERIENCE IN DEALING IN SECURITIES IN HONG KONG OR ON ANY OVERSEAS STOCK MARKET RECOGNISED BY THE COMMISSION, OR HAVE PASSED ANY PROFESSIONAL EXAMINATION APPROVED BY THE COMMISSION.
TO BE ELIGIBLE FOR REGISTRATION AS A DEALER. A CORPORATION MUST BE A REGISTERED COMPANY OR AN OVERSEAS COMPANY COMPLYING WITH THE RELEVANT PROVISIONS OF THE COMPANIES ORDINANCE. ALL ITS DEALING DIRECTORS MUST BE REGISTERED DEALERS, WHO WILL ONLY BE PERMITTED TO CARRY ON BUSINESS ON BEHALF OF THE CORPORATION.
A PARTNERSHIP WHICH CARRIES ON A BUSINESS OF DEALING IN SECURITIES MUST REGISTER AS A DEALING PARTNERSHIP. EVERY PARTNER IN A PARTNERSHIP AND EVERY GENERAL PARTNER IN A LIMITED PARTNERSHI IS REQUIRED TO BE A REGISTERED DEALER AND CAN ONLY DEAL IN SECURITIES ON BEHALF OF THE PARTNERSHIP.
/LIMITED PARTNERS
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