1964_SECURITIES_ORDINANCE — Page 40

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1989 Ed.]

Securities

[CAP. 333

39

(4) Where the Commission revokes or suspends the registration of any person under section 55 or 56 or imposes any other penalty under section 56, it shall notify that person in writing of the revocation, suspension, or other penalty, and shall include in the notice a statement of the reasons as to why the registration of the person was revoked or suspended or, as the case may be, the penalty was imposed.

58-59. (Repealed 10 of 1989 s. 65)

60. Exempt dealers

(Amended 10 of 1989 s. 65)

(1) The Commission may declare any person to be an exempt dealer for the purposes of this Ordinance if it is satisfied that the business of that person complies with the following requirement, that is to say-

(a) the main business of that person consists of one or both of the following activities-

(i) carrying on some business other than the business of dealing in securities;

(ii) dealing in securities in one or more of the ways specified in subsection (2); and

(b) the greater part of any business of dealing in securities done by him in Hong Kong, otherwise than in one of the ways specified in subsection (2), is effected with or through the agency of one or more of the following persons-

(i) a registered dealer;

(ii) an exempt dealer; or

(iii) a member of a stock exchange outside Hong Kong.

(2) The ways of dealing in securities referred to in subsection (1) are-

(a) issuing any document which is or is to be deemed to be a prospectus within the meaning of the Companies Ordinance (Cap. 32) or any prospectus approved by the Commission that is issued by a mutual fund corporation or unit trust authorized by the Commission;

(b) making or offering to make with any person an agreement for or with a view to the underwriting of securities by that person;

(c) making any invitation to persons to subscribe for securities or to purchase securities on the first occasion that they are sold;

(d) making any invitation to persons to subscribe for or purchase securities of the Government or the government of any country or territory outside Hong Kong;

(e) effecting any transaction with a person whose business involves the acquisition and disposal or the holding of securities, being a transaction with that person as a principal.

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