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571I PDFTitle:SECURITIES AND FUTURES (CLIENT MONEY) RULESGazette Number:L.N. 202 of 2002; L.N. 12 of 2003
Section:8Heading:Requirements in respect of a client's standing authorityVersion Date:01/04/2003


(1) For the purposes of section 4(4)(d) or 5(1)(c), a standing authority is a written notice that-

        (a) is given to a licensed corporation or an associated entity of a licensed corporation by a client of the licensed corporation;
        (b) authorizes the licensed corporation or associated entity to deal with client money from time to time-
          (i) received from or on behalf of; or
          (ii) held on behalf of,
          the client, in one or more specified ways;
        (c) subject to subsection (2), specifies a period not exceeding 12 months during which it is valid; and
        (d) specifies the manner in which it may be revoked.
(2) Subsection (1)(c) shall not apply to a standing authority which is given to a licensed corporation or an associated entity of a licensed corporation by a client of the licensed corporation who is a professional investor.
(3) A standing authority which is not revoked prior to its expiry-
        (a) may be renewed for one or more further periods-
          (i) not exceeding 12 months, if the client of the licensed corporation who gave it is not a professional investor; or
          (ii) of any duration, if the client of the licensed corporation who gave it is a professional investor,
          at any one time, with the written consent of the client of the licensed corporation who gave it; or
        (b) shall be deemed to have been renewed if-
          (i) at least 14 days prior to the expiry of the standing authority, the licensed corporation or associated entity to which it was given, gives a written notice to the client of the licensed corporation who gave the standing authority, reminding the client of its impending expiry, and informing the client that unless the client objects, it will be renewed upon expiry upon the same terms and conditions as specified in the standing authority and for-
            (A) an equivalent period to that specified in the standing authority;
            (B) any period not exceeding 12 months specified by the licensed corporation or associated entity, if the client of the licensed corporation is not a professional investor; or
            (C) a period of any duration specified by the licensed corporation or associated entity, if the client of the licensed corporation is a professional investor; and
          (ii) the client does not object to the renewal of the standing authority before its expiry.
(4) Where a standing authority is deemed to have been renewed in accordance with subsection (3)(b), the licensed corporation or associated entity (as the case may be) shall give a written confirmation of the renewal of the standing authority to the client of the licensed corporation within one week after the date of expiry.