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GF 31 1976.)
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(9) If, in any records kept in accordance with this section, a person wilfully
(a) enters, records or stores, or causes to be entered, recorded or stored, in any manner whatsoever any matter that he knows to be false or misleading in a material particular;
(b) destroys, removes or falsifics, or causes to be destroyed, removed or falsified, any matter that is entered, recorded or stored; or (c) fails to enter, record or store any matter with intent to falsify the records or any part of the records intended to be compiled from that matter,
he shall be guilty of an offence and shall be liable on conviction upon indictment to a fine of $20,000 and to imprisonment for 1 year,
46. (1) A dealer shall establish and keep with an organization approved by the Commissioner for the purposes of this subsection, a deposit-taking company registered under the Deposit-aking Companies Ordinance 1976 or a licensed bank, one or more segregated accounts into which he shall pay, within 4 back trading days after their receipt. all amounts (less brokerage and other proper chargés relating to the require- ments of a clearing house or other clearing organization) which are received from, or for the account of, any client in respect of the purchase or sale of futures contracts, except those amounts paid to that client, or in accordance with his directiona, not being directions for the payment into an account of the dealer which is not a segregated account.
(2) All amounts required to be paid into a segregated account under subsection (1) shall be retained there by the dealer until they pre paid to the client on whose behalf they are being held or in accordance with his directions or, as the case may be, until they are required to complete payment in respect of the purchase of futures contracts on behalf of such client
(3) All amounts required to be paid into a segregated agcount under subsection (1) shall be so paid within 4 bank trading days after they are received by the dealer.
(4) No amount other than an amount referred to in subsection (1) shall be paid into a segregated account.
(5) Every dealer shall keep records of
(a) all amounts paid joto a segregated account kept by him, specify- ing the clients on whose behalf the amounts are held and the dates on which they were paid into the account;
(b) all withdrawals from the segregated account, the dates of such withdrawals, and the names of the clients on whose behalf the withdrawals are made; and
(c) such other particulars (if any) as the Commissioner may require.
(6) Any dealer who-
(a) without reasonable excuse, contravenes this section shall be guilty of an offence and shall be liable on conviction upon indictment to a fine of $10,000 and to imprisonment for 6 meaths.
(b) with intent to defraud, contravenes this section shall be guilty of an offence and shall be liable on conviction upon indictment to a fine of $30,000 and to imprisonment for 5 years.
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47. (1) Except as otherwise provided in this Part, money held in a segregated account shall not be available for payment of the debts of a dealer or be liable to be paid or taken in exécution under the order of process of any courl,
(3). Any payment made in contravention of subsection (1) shall be void ab initio, and no person to whom the money is paid shall obtain any title to it.
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48. Nothing in this Part shall be construed as taking away or affecting Claims and any lawful claim or lien which any person has in respect of any money Ilena or held in a segregated account or in respect of any money received for the purchase of futures contracts or from the sale of futures contracts before affected. the money is paid into a segregated account.
accounts gol
49. (1) A dealer shall appoint an auditor to audit his accounts Dealer to (including all segregated accounts required to be kept by the dealer under pol section 46), and, where for any reason the auditor ceases to act for the dealer, the dealer shall, as soon as practicable thereafter, appoint another auditor to replace him.
(2) An auditor is not eligible for appointment under subsection (1)
(a) where the dealer is an individual, he is an employee of the dealer or is in the employment of any employee of the dealer: (b) where the dealer is a corporation, he is a director or employes of the corporation or is in the employment of any director or employee of the corporation; or
(c) where the dealer is a firm, he is a partner or employee of the firm or is in the employment of any partner or employee of the firm.
50. (1) A dealer shall-
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(a) in respect of the financial year beginning before and ending after an
the day on which this section comes into operation, or the MOOISTA, BIG. day on which the dealer commences to carry on business as a dealer, whichever is the later day; and
(b) in respect of each subsequent financial year,
prepare a true and fair profit and loss account and a balance sheet made up to the last day of the financial year and lodge the account and balance sheet with the Commissioner within 4 months (or such extension thereof permitted by the Commissioner under subsection (2)) next following the end of the financial year, together with an auditor's report on the account and balance sheet.
(2) Where an application for the extension of the period of 4 months specified in subsection (1) is made by a dealer to the Commissioner and the Commissioner is satisfied that there are special reasons for requiring the extension, the Commissioner may extend that period by 1 month subject to such conditions (if any) as the Commissioner thinks At to impose.
(3) Any dealer who fails to comply with subsection (1) or with any condition imposed under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine of $5,000.
Auditor to
The Comunis.
51. It, during the performance of his duties as auditor for a dealer. Report by an auditor
(a) becomes aware of any matter which in his opinion adversely soner do
affects the financial position of the dealer to a material extent; or serio cases.
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