54
CAP. 250]
Commodities Trading
[1989 Ed.
107. Commodity trading advisory contracts
(1) No commodity trading adviser shall enter into a commodity trading advisory contract with any person (in this section referred to as his client), or extend or renew any such contract, or in any way perform any such commodity trading advisory contract entered into, extended or renewed after the commencement of this section, if the contract-
(a) provides for remuneration to be paid by the client to the commodity trading adviser on the basis of a share of capital gains of the funds or any part of the funds of the client;
(b) does not include a provision to the effect that an assignment of the contract by the commodity trading adviser shall be made only with the consent of the client; or
(c) does not include a provision to the effect that the commodity trading adviser-
(i) if a corporation, will notify the client of any change in the directors of the corporation; or
(ii) if a firm, will notify the client of any change in the partners of the firm,
within a reasonable time after the change.
(2) Subsection (1)(a) does not prohibit a commodity trading advisory contract which provides for remuneration based on the total value of a fund averaged over a definite period, or on definite dates, or taken on a definite date.
(3) For the purposes of this section, "commodity trading advisory contract" means a contract or agreement whereby a person agrees to act as a commodity trading adviser or to manage any commodity trading or trading account of a client, not being a company carrying on business as a commodity trading company and registered as such under the Companies Ordinance (Cap. 32).
(4) Any commodity trading adviser who enters into any contract in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine of $10,000. (Amended 54 of 1980 s. 5)
(5) Any commodity trading advisory contract entered into in contravention of subsection (1) shall, notwithstanding anything in the contract, be voidable at the option of the client.
108. Obstruction
Any person who-
(a) obstructs the Commission or any other public officer or any person in the exercise or performance of any power, authority, duty or function under this Ordinance; or
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Page 56
54
CAP. 250]
Commodities Trading
[1989 Ed.
107. Commodity trading advisory contracts
(1) No commodity trading adviser shall enter into a commodity trading advisory contract with any person (in this section referred to as his client), or extend or renew any such contract, or in any way perform any such commodity trading advisory contract entered into, extended or renewed after the commencement of this section, if the contract-
(a) provides for remuneration to be paid by the client to the commodity trading adviser on the basis of a share of capital gains of the funds or any part of the funds of the client;
(b) does not include a provision to the effect that an assignment of the contract by the commodity trading adviser shall be made only with the consent of the client; or
(c) does not include a provision to the effect that the commodity
trading adviser-
(i) if a corporation, will notify the client of any change in the
directors of the corporation; or
(ii) if a firm, will notify the client of any change in the partners
of the firm,
within a reasonable time after the change.
(2) Subsection (1)(a) does not prohibit a commodity trading advisory contract which provides for remuneration based on the total value of a fund averaged over a definite period, or on definite dates, or taken on a definite date.
(3) For the purposes of this section, "commodity trading advisory contract" means a contract or agreement whereby a person agrees to act as a commodity trading adviser or to manage any commodity trading or trading account of a client, not being a company carrying on business as a commodity trading company and registered as such under the Companies Ordinance (Cap. 32).
(4) Any commodity trading adviser who enters into any contract in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine of $10,000. (Amended 54 of 1980 s. 5)
(5) Any commodity trading advisory contract entered into in contra- vention of subsection (1) shall, notwithstanding anything in the contract, be voidable at the option of the client.
108. Obstruction
Any person who-
(a) obstructs the Commission or any other public officer or any person in the exercise or performance of any power, authority, duty or function under this Ordinance; or
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