Cap 571H s 4 Requirements in respect of a client's standing authority (Securities and Futures (Client Securities) Rules; SECURITIES AND FUTURES ORDINANCE)

Contents of Section

Chapter:	571H	Title:	Securities and Futures (Client Securities) Rules	Gazette Number:	E.R. 2 of 2012
Section:	4	Heading:	Requirements in respect of a client's standing authority	Version Date:	02/08/2012

(1) For the purposes of section 6(1)(c), 7(2) or (3), 8(2) or 9(2), a standing authority is a written notice that-

(a) is given to an intermediary or an associated entity of an intermediary by a client of the intermediary;

(b) authorizes the intermediary or associated entity to deal with client securities or securities collateral from time to time received or held on behalf of the client, in one or more specified ways;

(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 an intermediary or an associated entity of an intermediary by a client of the intermediary 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 intermediary who gave it is not a professional investor; or

(ii) of any duration, if the client of the intermediary who gave it is a professional investor,

at any one time, with the written consent of the client of the intermediary 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 intermediary or associated entity to which it was given, gives a written notice to the client of the intermediary 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 stated in the standing authority;

(B) any period not exceeding 12 months specified by the intermediary or associated entity, if the client of the intermediary is not a professional investor; or

(C) a period of any duration specified by the intermediary or associated entity, if the client of the intermediary 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 intermediary 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 intermediary within one week after the date of expiry.