1976-HKRS28-16-24_Part04 — Page 24

whether his remuneration is by way of salary, wages. commission, or otherwise, but, in the case of a corpora- tion which is a dealer, does not include a director of the corporation;":

''

(c) in the definition of "dealing in securities" by-

(i) deleting "or" at the end of paragraph (b); and

(ii) deleting paragraph (c);

(d) by inserting, after the definition of "defaleation", the following

new definition-

(Cap. 123

ם

""director" has the same meaning as in section 2 of the

Companies Ordinance;";

(e) by inserting, after the definition of "exempt dealer", the following

new definition

גין

"exempt investment adviser" means alperson declared under section 61 to be an exempt investment adviser for the purposes of this Ordinance;";

(f) by deleting the definition of “financial year" and substituting the

following-

"foancial year” Įtans-

(a) in the case of a dealer, the period notified by him under section 87A or permitted by the Commissioner under that section:

(5) in any other case, a period of 12 months ending on

the 31st March in any calendar year;":

(g) by deleting the definitions of "investment adviser" and "lowest-

ment representative" and substituting the following-

""investraçat advisor” means any person who-

(a) for direct remuneration carries on a business of

advising other persons concerning securities;

(b) for direct remuneration as part of a regular business issues analyses or reports concerning securities; or (c) for direct remuneration pursuant to a contract or arrangement with a client, undertakes on behalf of the client the management of a portfolio of securities, including the arranging of purchases, sales, or exchanges of securities through a dealer or exempt dealer,

and, in the case of a corporation which is an investment adviser, includes any director of the corporation who actively participates in, or ia in any way directly responsible for the supervision of the corporation's business as an investment adviser; but does not joclude—

(i) a licensed bank;

(ii) a solicitor or professional accountant whose carrying on business as an investment adviser is wholly incidental to the practice of his profession; Gü) the proprietor or publisher of, or any contributor to, a bona fide newspaper, magazino, journal, or other periodical publication that is generally avail- able to the public, otherwise than on subscription, who, only in that bona fide newspaper, magazine,

(Cap. 29)

3

journal, or periodical publication, advises other persons concerning securities, or issues analyses or reports concerning securities, not being the proprietor or publisher of, or a contributor to a newspaper, journal, magazine, or other periodical publication whose principal or only object is to advise others concerning securities or 10 issue analyses or reports concerning securities;

(iv) a dealer or exempt dealer to the extent that his giving of investment advice is incidental to his carrying on business as a dealer or exempt dealer,

(v) a trustee company registered under Part VIII of the

Trustee Ordinance;

(vi) an exempt investment adviser, investment representative" means a person in the employ- ment of, of acting for or by arrangement with, an invest- ment adviser, not being an exempt investment adviser, who performs for that investment adviser any of the functions of an investment adviser (other than work ordinarily performed by an accountant, clerk or cashier) whether his remuneration is by way of salary, wages, commission, or otherwise, but, in the case of a corpora- tion which is an investment adviser, does not includo a director of the corporation;";

(k) by inserting, after the definition of "investment representative",

the following new definition—

"issue" includes distribute and circulate:": and

(0) in the definition of "securitier"'-

(Cap. 193

(i) by deleting "loans" and substituting the following---

“loan stocks";

Gi) by inserting, after sub-paragraph (iii), the following-

"Ov) any bill of exchange within the meaning of section 3 of the Bills of Exchange Ordinance and any promissory note within the meaning of section 89 thereof;

(v) any debenture that specifically provides that it is nol

degotiable or transferable:"

3. Section 4(3) of the principal Ordinance is amended by deleting Amendgegt ef "to make such an appointment and substituting the following-

"to appoint or remove a director”.

4. Section 507X6) of the principal Ordinance is amended- (a) by deleting "section 79," and substituting the following-

"sections 67 and 79,"; and

(5) by inserting, after "nominee for", the following-

5.

€

or as an employee of,”.

Section 14(1) of the principal Ordinance is amended-

(a) in paragraph (b) by deleting "may" and substituting the

following-

"ball":

cection 4.

Ameodigent of Jestion 6.

Amendment of anadoo 14.