### Securities and Futures Ordinance 《證券及期貨條例》

393. Financial Secretary to prescribe arrangements as collective investment schemes
(1) For the purposes of this Ordinance, the Financial Secretary may by notice published in the Gazette prescribe, either generally or in a particular case, that—
(a) any arrangements, or any class or description of arrangements, is to be regarded as collective investment schemes, where the arrangements—
(i) are made available in the course of business and have the purpose or effect, or pretended purpose or effect, of enabling the participating persons—
(A) to acquire any right, interest, title or benefit in any property for valuable consideration;
(B) to defer taking possession of the property; and
(C) to transfer or retransfer any right, interest, title or benefit in the property to a person who is a party to, or is referred to in, the arrangements; or
(ii) have the purpose or effect, or pretended purpose or effect, of enabling the participating persons, whether by acquiring any right, interest, title or benefit in any property or any part of the property or otherwise, to participate in or receive—
(A) profits, income or other returns represented to arise or to be likely to arise from the acquisition, holding, management or disposal of the property or any part of the property, or sums represented to be paid or to be likely to be paid out of any such profits, income or other returns; or
(B) a payment or other returns arising from the acquisition, holding or disposal of, the exercise of any right in, the redemption of, or the expiry of, any right, interest, title or benefit in the property or any part of the property;
(b) any arrangements, or any class or description of arrangements, is not to be regarded as collective investment schemes.
(2) Without limiting the generality of subsection (1), a notice under that subsection may prescribe the circumstances under which or the purposes for which any arrangements, or any class or description of arrangements, referred to in the notice is to be regarded, or not to be regarded, as collective investment schemes.

### Securities and Futures Ordinance 《證券及期貨條例》

394. Orders by Chief Executive in Council for levies
(1) A levy (if any) at the rate specified by the Chief Executive in Council by order published in the Gazette shall be payable to the Commission by the person or persons so specified by the Chief Executive in Council for—
(a) every sale and purchase of any securities which is recorded on a recognized stock market or notified to a recognized exchange company under its rules;
(b) every sale and purchase of any futures contract traded on a recognized futures market; and
(c) every sale and purchase of any securities or futures contracts traded by means of authorized automated trading services.
(2) For the purposes of subsection (1), the Chief Executive in Council may—
(a) specify the rate or amount of the levy payable under that subsection for any sale and purchase—
(i) as a percentage of the consideration for the sale and purchase;
(ii) as a fixed amount;
(iii) as a nil rate, nil percentage or nil amount; or
(iv) as to be calculated in any other manner specified in the order;
(b) specify different rates for different classes of securities or futures contracts.
(3) Each recognized exchange company, and each person authorized to provide authorized automated trading services, shall collect, account for, and pay to the Commission, the levy (if any) payable under subsection (1).
(4) The Commission may recover the amount of any levy payable under this section as a civil debt due to it.
(5) The Chief Executive in Council may make rules for—
(a) the payment of levies under this section;
(b) the imposition of charges or penalties for late payment of such levies;
(c) the keeping, examination and audit of the accounts of recognized exchange companies, and of persons authorized to provide authorized automated trading services, relating to the collection and payment to the Commission of such levies.
(6) Nothing in subsection (1) requires the Chief Executive in Council to specify a rate or amount of levy in any particular sale and purchase to which that subsection applies or in any particular class of sales and purchases to which that subsection applies.

### Securities and Futures Ordinance 《證券及期貨條例》

396. Reduction of levy
(1) If during a financial year of the Commission—
(a) the reserves of the Commission, after deducting depreciation and all provisions, are more than twice its estimated operating expenses for the financial year; and
(b) the Commission has no outstanding borrowings,

the Commission shall consult the Financial Secretary with a view to recommending to the Chief Executive in Council that the rate or amount of a levy be reduced under section 394.
(2) The Commission may, after consultation with the Financial Secretary under subsection (1), recommend to the Chief Executive in Council that the rate or amount of a levy be reduced under section 394.

### Securities and Futures Ordinance 《證券及期貨條例》

404. Exclusions of provisions of Gambling Ordinance
(1) Subject to subsection (2), the Gambling Ordinance (Cap. 148) shall not apply to any transaction or activity which is regulated by or under, or which is carried out in compliance with, this Ordinance.
(2) The Commission may make rules to prescribe any class of transactions or activities (being transactions or activities to which the Gambling Ordinance (Cap. 148) would apart from this section apply), whether by reference to the nature of the transactions or activities or all or any of the parties to or persons involved in the transactions or activities or otherwise, as a class of transactions or activities to which that Ordinance shall apply, whereupon that Ordinance shall have application accordingly.

405. Inland Revenue Ordinance not affected
Nothing in this Ordinance affects section 4 of the Inland Revenue Ordinance (Cap. 112).

### Securities and Futures Ordinance 《證券及期貨條例》

406. Repeals
#(1) Each of the following shall be repealed from a day appointed by the Secretary for Financial Services and the Treasury by notice published in the Gazette— (Amended L.N. 106 of 2002)
(a) the Securities and Futures Commission Ordinance (Cap. 24);
(b) the Commodities Trading Ordinance (Cap. 250);
(c) the Securities Ordinance (Cap. 333);
(d) the Protection of Investors Ordinance (Cap. 335);
(e) the Stock Exchanges Unification Ordinance (Cap. 361);
(f) the Securities (Insider Dealing) Ordinance (Cap. 395);
(g) the Securities (Disclosure of Interests) Ordinance (Cap. 396);
(h) the Securities and Futures (Clearing Houses) Ordinance (Cap. 420);
(i) the Leveraged Foreign Exchange Trading Ordinance (Cap. 451);
(j) the Exchanges and Clearing Houses (Merger) Ordinance (Cap. 555).
(2) Any repeal under this section is subject to—
(a) the other provisions of this Part; and
(b) Schedule 10.
(3) Without limiting the generality to section 12 of Part 1 of Schedule 1, a reference to any Ordinance in this section includes any subsidiary legislation made under such Ordinance.

Editorial Note:
# 1 April 2003 was the day appointed under this subsection — see L.N. 13 of 2003.