Chapter:	571N	Title:	SECURITIES AND FUTURES (FINANCIAL RESOURCES) RULES	Gazette Number:	L.N. 209 of 2002; L.N. 12 of 2003
Section:	11	Heading:	No set-off	Version Date:	01/04/2003

(1) Subject to subsections (2), (3), (4), (5) and (6) and section 48(2), the assets and liabilities of a licensed corporation shall be treated separately on a gross basis and shall not be set-off against each other.
(2) Subsection (1) does not apply in respect of any amounts receivable by a licensed corporation from, and any amounts payable by it to, a recognized clearing house, where the rules of the clearing house permit the setting-off of such amounts against each other for settlement purposes.
(3) Subsection (1) does not apply in respect of any amounts receivable by a licensed corporation from, and any amounts payable by it to, a person, where-

(a) such amounts do not arise from the carrying on of any regulated activity for which it is licensed; and
(b) it has a legally enforceable right to set-off such amounts against each other.

(a) the purchase and sale by the client of securities of the same description due to be settled on a cash-against-delivery basis and the client has authorized the licensed corporation to set-off such amounts;
(b) the purchase and sale by the client of securities in relation to which the licensed corporation has elected to set-off such amounts against each other under section 21(2); or
(c) the provision by it to the client of securities margin financing.