Cap 571I s 12 Penalties (SECURITIES AND FUTURES (CLIENT MONEY) RULES; SECURITIES AND FUTURES ORDINANCE)

Contents of Section

Chapter:	571I	Title:	SECURITIES AND FUTURES (CLIENT MONEY) RULES	Gazette Number:	L.N. 202 of 2002; L.N. 12 of 2003
Section:	12	Heading:	Penalties	Version Date:	01/04/2003

(1) A licensed corporation, or an associated entity of a licensed corporation, which, without reasonable excuse, contravenes section 4 or 5 commits an offence and is liable-

(a) on conviction on indictment to a fine of $200000 and to imprisonment for 2 years; or

(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(2) A licensed corporation, or an associated entity of a licensed corporation, which, with intent to defraud, contravenes section 4 or 5 commits an offence and is liable-

(a) on conviction on indictment to a fine of $1000000 and to imprisonment for 7 years; or

(b) on summary conviction to a fine of $500000 and to imprisonment for 1 year.

(3) A licensed corporation, or an associated entity of a licensed corporation, which, without reasonable excuse, contravenes section 6, 8(4), 10 or 11 commits an offence and is liable on conviction to a fine at level 3.
(4) A licensed corporation, or an associated entity of a licensed corporation, which, with intent to defraud, contravenes section 6, 8(4), 10 or 11 commits an offence and is liable on conviction to a fine at level 6.
(5) In deciding whether or not a payment of client money under section 4(5)(a) or 5(2)(a) would be unconscionable, the court shall have regard to the factors specified in section 6 of the Unconscionable Contracts Ordinance (Cap 458), as if the standing authority in question were a contract under that Ordinance.