1964_SECURITIES_AND_FUTURES_COMMISSION_ORDINANCE — Page 84

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CAP. 24]

Securities and Futures Commission

[1989 Ed.

51. Additional powers-suspension orders relating

to Exchange Companies and clearing houses

(1) Where the Commission is satisfied that it is in the interest of the investing public or in the public interest, or it is appropriate to do so for the protection of investors or for the proper regulation of an Exchange Company or clearing house, the Commission may, after consultation with the Financial Secretary, make an order (“suspension order” (144)) relating to all or any of the following functions of the Exchange Company or clearing house-

(a) the functions of the board of directors or governing body of the

Exchange Company or clearing house;

(b) the functions of a director of a board or a member of a body

referred to in paragraph (a);

(c) the functions of a committee (including a sub-committee)

established by a board or body referred to in paragraph (a);

(d) the functions of the chief executive officer (whether called that or

not) of the Exchange Company or clearing house.

(2) For so long as a suspension order is in force the following provisions shall apply-

(a) none of the functions to which the order relates shall be

performed by the Exchange Company or clearing house to which it relates or any board, governing body, committee or officer thereof;

(b) any function to which paragraph (a) applies may be performed by such person as shall be specified in the order in relation to that function;

(c) a person referred to in paragraph (a) shall not, by act or omission, either directly or indirectly, affect the manner in which functions therein referred to are performed.

(3) Subject to subsection (5), a suspension order shall continue in force for such period, being a period not exceeding 6 months, as shall be specified in the order.

(4) (a) A suspension order or an extension thereof under subsection (5) shall take effect when a copy of the order or notice of the extension is served under subsection (6)(a) on the Exchange Company or clearing house to which the order relates.

(b) (i) Where a suspension order is made or such an order is

extended under subsection (5), the Commission shall, if it is practical so to do, as soon as may be, give a copy of the order or, as may be appropriate, notice of its extension to the chief executive officer of the Exchange Company or clearing house to which the order relates and to such directors or members of the committee thereof (if any) as the Commission may consider appropriate in the circumstances.

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