XN000022-1983-08-05 — Page 5

FRIDAY, AUGUST 5, 1983

(D) AUDITORS

A NEW PROVISION, SIMILAR TO THAT WHICH ALREADY EXISTS IN THE SECURITIES ORDINANCE AND THE COMMODITIES TRADING

ORDINANCE, REQUIRES AN AUDITOR TO INFORM THE

COMMISSIONER IF, IN THE COURSE OF HIS DUTIES AS AUDITOR, HE BECOMES AWARE OF ANY MATTER ADVERSELY AFFECTING THE

COMPANY'S FINANCIAL POSITION TO A MATERIAL EXTENT, OR

DISCOVERS EVIDENCE OF CONTRAVENTIONS OF CERTAIN PARTS

OF THE ORDINANCE.

(E) COMMODITIES DEALERS

IT IS PROPOSED THAT DEALERS REGISTERED UNDER THE COMMODITIES TRADING ORDINANCE SHOULD BE EXEMPT FROM THE PROVISIONS OF THE DTC ORDINANCE IN RESPECT OF FUNDS

HELD FROM CLIENTS IN THE NORMAL COURSE OF BUSINESS, IN THE SAME WAY AS DEALERS REGISTERED UNDER THE SECURITIES

ORDINANCE ARE ALREADY EXEMPT,

(F) MISCELLANEOUS

AMONG OTHER AMENDMENTS ARE PROVISIONS TO TIGHTEN SLIGHTLY THE RESTRICTION ON DIVIDEND PAYMENTS WHEN

CAPITAL AND RESERVES ARE BELOW TARGET LEVELS; IN

CERTAIN CIRCUMSTANCES TO DENY LIQUIDITY STATUS TO ANY

FUNDS HELD WITH A SUSPENDED DTC;

TO REMOVE A MINOR IMPEDIMENT TO CO-OPERATION IN

INTERNATIONAL SUPERVISION; TO ALLOW A DEFENCE OF DUE

DILIGENCE IN THE CASE OF A PROSECUTION FOR A DTC

CONTRAVENING ITS STATUTORY DUTIES; AND, AS IS ALREADY PROVIDED IN THE BANKING ORDINANCE, TO INDEMNIFY PERSONS CONCERNED WITH THE ADMINISTRATION OF THE ORDINANCE

AGAINST ANYTHING DONE BONA FIDE IN ITS ADMINISTRATION.

/THE SPOKESMAN