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Chapter: | 571X
 | Title: | SECURITIES AND FUTURES (DISCLOSURE OF INTERESTS-SECURITIES BORROWING AND LENDING) RULES | Gazette Number: | L.N. 219 of 2002; L.N. 12 of 2003 |
| Section: | 5 | Heading: | Exclusion for an approved lending agent and a person controlling an approved lending agent | Version Date: | 01/04/2003 |
(1) Subject to subsection (5), an approved lending agent who would otherwise come under a duty of disclosure under section 310 of the Ordinance in the circumstances specified in section 313(1) of the Ordinance is not under such a duty in the circumstances specified in subsection (3).
(2) Subject to subsection (5), a person taken under section 316(2) of the Ordinance to be interested in shares in which an approved lending agent is interested who would otherwise come under a duty of disclosure under section 310 of the Ordinance in the circumstances specified in section 313(1) of the Ordinance is not under such a duty in the circumstances specified in subsection (3).
(3) The circumstances referred to in subsections (1) and (2), in which the approved lending agent or person (as the case may be) is not under a duty of disclosure, are those where-
- (a) qualified shares are transferred or delivered by the person to the approved lending agent;
(b) shares held by, or on behalf of, the approved lending agent become qualified shares when the person referred to in paragraph (a) authorizes the approved lending agent to lend the shares;
(c) qualified shares are lent by the approved lending agent to a borrower under a relevant agreement;
(d) qualified shares lent by the approved lending agent are returned to the approved lending agent by a borrower under a relevant agreement;
(e) qualified shares held by, or on behalf of, the approved lending agent cease to be qualified shares; or
(f) qualified shares are returned to the person referred to in paragraph (a) by the approved lending agent.
- (i) subsection (3)(a) or (b), the approved lending agent and the person referred to in subsection (2)(if any) are taken, for the purposes of Divisions 2 to 5 of Part XV of the Ordinance, to have acquired an interest in the shares at the relevant time; or
(ii) subsection (3)(e) or (f), the approved lending agent and the person referred to in subsection (2)(if any) are taken, for the purposes of Divisions 2 to 5 of Part XV of the Ordinance, to have ceased to have an interest in the shares at the relevant time; and
- (b) in the circumstances where the approved lending agent ceases to have a subsisting right, under the relevant agreement under which qualified shares were lent, to require the return of the shares, the approved lending agent and the person referred to in subsection (2)(if any) are taken, for the purposes of Divisions 2 to 5 of Part XV of the Ordinance, to have ceased to have an interest in the shares at the relevant time,
(5) If an approved lending agent fails to comply with any requirement imposed under section 9, the approved lending agent and the person referred to in subsection (2)(if any) are taken, for the purposes of Divisions 2 to 5 of Part XV of the Ordinance, to have acquired an interest in all qualified shares in which the approved lending agent was interested under the terms of a relevant agreement-
- (a) in the case of a failure to comply with section 9(1), on the last day of the period within which the approved lending agent is required to make the record;
(b) in the case of a failure to comply with section 9(3)(a), on the first day that the approved lending agent fails to retain the record; or
(c) in the case of a failure to comply with section 9(3)(b), on the last day of the period within which the approved lending agent is required to provide the record,