Cap 571 s 23 Rules by recognized exchange company (Securities and Futures Ordinance)

Contents of Section

Chapter:	571	Title:	Securities and Futures Ordinance	Gazette Number:	23 of 2004
Section:	23	Heading:	Rules by recognized exchange company	Version Date:	08/09/2004

(1) Without limiting any of its other powers to make rules, a recognized exchange company may make rules for such matters as are necessary or desirable-

(a) for the proper regulation and efficient operation of the market which it operates;

(b) for the proper regulation of its exchange participants and holders of trading rights;

(2) Without limiting the generality of subsection (1), a recognized exchange company which may operate a stock market may make rules for-

(a) applications for the listing of securities and the requirements to be met before securities may be listed;

(b) the entering into of agreements between the recognized exchange company and other persons in connection with the listing of securities, and the enforcement of those agreements by the company;

(c) the cancellation and withdrawal of the listing of, and the suspension and resumption of dealings in, securities listed on the recognized stock market operated by the recognized exchange company;

(d) the imposition on any person of obligations to observe specified standards of conduct or to perform, or refrain from performing, specified acts reasonably imposed in connection with the listing or continued listing of securities;

(e) the admission of securities which are regulated in a jurisdiction outside Hong Kong to trading on a recognized stock market operated by the recognized exchange company;

(f) the penalties or sanctions which may be imposed by the recognized exchange company for a breach of rules made under this section;

(g) procedures or conditions which may be imposed, or circumstances which are required to exist, in relation to matters which are provided for in the rules made under this section;

(h) dealing with possible conflicts of interest that might arise where a relevant corporation or a relevant recognized exchange controller seeks to be or is a listed corporation;

(i) such other matters as are necessary or desirable for the proper and efficient operation and management of the recognized exchange company.

(3) The Commission may, by notice in writing served on a recognized exchange company, request the company-

(a) to make rules specified in the request within the period specified in that request; or

(b) to amend rules referred to in the request in the manner and within the period specified in that request.

(4) Before making a request under subsection (3), the Commission shall consult the Financial Secretary and the recognized exchange company to which the request relates.
(5) Where the Commission is satisfied that a recognized exchange company has not complied with a request referred to in subsection (3) within the period specified in the request, the Commission may make or amend the rules specified in the request instead of the company.
(6) The following persons or anyone who seeks to become any such person shall, if required to do so by the rules of a recognized exchange company, make a statutory declaration concerning such matters as may be specified in the rules-

(a) an exchange participant or holder of trading rights of the company;

(b) a director of a corporation which uses the facilities of the company;

(d) a director or adviser of a listed corporation.

(7) In making rules under this section, a recognized exchange company shall take into account that a solicitor or certified public accountant acting in his professional capacity in private practice has duties imposed by law and under rules of professional conduct. (Amended 23 of 2004 s. 56)
(8) A recognized exchange company shall, in circumstances stipulated in arrangements agreed from time to time between it and The Law Society of Hong Kong or the Hong Kong Institute of Certified Public Accountants, refer breaches of rules made under this section- (Amended 23 of 2004 s. 56)

(a) which are alleged to have been committed by a solicitor or certified public accountant in private practice; and (Amended 23 of 2004 s. 56)

(b) which may also constitute a breach of duty imposed by law or under rules of professional conduct,

to The Law Society of Hong Kong or the Hong Kong Institute of Certified Public Accountants (as the case may be), for determination of whether to make a finding, impose a penalty or sanction or take other disciplinary action. (Amended 23 of 2004 s. 56)
(9) For the purposes of subsections (7) and (8), a person shall be regarded as acting in the capacity of a solicitor or certified public accountant in private practice if in the course of private practice he provides legal or professional accountancy services to a client, but shall not be regarded as so acting where, in respect of a matter governed by rules made under this section, he is also connected with the matter in any other capacity. (Amended 23 of 2004 s. 56)