TNAG-1363-FCO40-1809-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 182

3

2

(2)

(b)

(c)

Under Clauses 4 to 7, it is proposed

that a partnership must be properly

registered under Cap. 38 and every partner must be a registered dealer (except in the case of limited partnership the details of which have been disclosed to the registrar).

For the new category of membership, i.e., corporations, a corporation has to be properly registered under the Companies Ordinance or for an overseas company, it must have complied with the provision of Part XI of the Companies Ordinance, and every dealing director

must be a registered dealer.

Imposing more stringent financial requirements

For a

(a) Under Clause 48 of the bill, individual

dealers must satisfy a financial requirement of HK$1 million and corporation must meet the requirement of HK$5 million as its capital. partnership the minimum net capital requirement will be calculated according to the member and type of

registered dealers in the partnership.

(b) Under Clause 49 each trading entity

must maintain a liquidity margin, i.e.

10% of the net capital requirement

under a schedule of approved assets and ranking liabilities prescribed by the Securities Commission to calculate its

net capital and liquidity margin

requirements.