TNAG-1363-FCO40-1809-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 178

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4.

In view of the need to continue to improve the

quality and standard of stockbroking activities, the Bill

introduces new and important experience, qualification and

financial requirements for dealers.

5.

Dealers will be required either to have at least

three years' experience in dealing in securities in Hong

Kong or on any recognised overseas stock market, or have

passed a professional examination approved by the Securities

Commission.

6.

the

All dealers will be required to comply with

certain minimum financial requirements. First, individual

dealers and dealing corporations must maintain in the

stockbroking business a minimum net capital of $1 million

and $5 million respectively. For dealing partnerships,

minimum net capital requirement will be calculated according

to the number and type of registered dealers in the

partnership. Second, a minimum liquidity margin - 10% of

the minimum net capital requirement

-

will have to be

maintained. A Schedule of approved assets and ranking

liabilities for the purpose of calculating the net capital

and the liquidity margin will be prescribed by the

Securities Commission.