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Contract Notes, Statements of Accounts and Receipts Rules
(Q1 was updated on 29 September 2020)

Q1 : Would it satisfy section 17 of the CNR if an intermediary provides the relevant documents to a client by access through the intermediary’s website?


Section 17 of the CNR does not state how the relevant documents should be provided to a client. The SFC’s current policy position is that the provision of access to trade documents through intermediaries’ websites will be acceptable for the purposes of section 17 of the CNR provided that (a) the intermediaries have obtained positive, revocable consent from the clients to such method of provision in lieu of other means of service specified as satisfying the requirement for serving any document for the purposes of the Securities and Futures Ordinance (“SFO”) under section 400 of the SFO (e.g. by hand, post, electronic mail transmission, etc), and (b) there are operational safeguards that ensure adequate notice and access are being given to the clients.

The updated list of operational measures which are considered to be appropriate and necessary for ensuring compliance with the spirit of the CNR is set out in the SFC’s circular dated 29 September 2020 (SFC/IS/035/2020), available at https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/supervision/doc?refNo=20EC61

Section reference: 17


Last update: 29 Sep 2020

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