Securities & Futures Commission of Hong Kong

Contract Notes, Statements of Accounts and Receipts Rules

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?

A:

Section 17 of the CNR does not state how the relevant documents should be provided to a client. With the advance of information technology and increase of computer usage by the public, the SFC’s current policy view 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 consent from the clients to such method of provision in lieu of other conventional means (e.g. by hand, by post, etc), and (b) there are operational safeguards that ensure adequate notice and access are being given to the clients.

In this regard, the SFC has prepared a list of operational measures which are considered to be appropriate and necessary for ensuring compliance with the spirit of the CNR. Please refer to the SFC’s circular dated 28 July 2010 (SFC/IS/013/2010), available at http://sfc2.butter.com.hk/EN/laws-rules-and-circulars/circulars.html, for further details.

Section reference: 17

3.3971 s