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

15. Accounts and annual report
(1) The Commission shall keep proper accounts and records of its transactions.
(2) The Commission shall, as soon as reasonably practicable after the end of each financial year of the Commission, prepare financial statements which shall—
(a) give a true and fair view of the state of affairs of the Commission as at the end of the financial year and of the results of its operations and cash flows in the financial year; and
(b) be signed by the chairman and the chief executive officer of the Commission. (Amended 15 of 2006 s. 3)
(3) The Commission shall, as soon as reasonably practicable after the end of each financial year of the Commission, prepare a report on its activities during the financial year and send a copy of the report to the Financial Secretary who shall cause a copy thereof to be laid on the table of the Legislative Council.

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

16. Auditors and audit
(1) The Commission shall, with the approval of the Financial Secretary, appoint auditors.
(2) The Commission shall, as soon as reasonably practicable after the end of each financial year of the Commission, submit to the auditors appointed under subsection (1) for audit the financial statements prepared for the financial year under section 15(2).
(3) The auditors appointed under subsection (1) shall prepare a report on the financial statements submitted to them under subsection (2) and send the report to the Commission which shall, as soon as reasonably practicable after its receipt, send to the Financial Secretary a copy of the report and a copy of the financial statements to which the report relates.
(4) The auditors appointed under subsection (1) shall include in their report a statement as to whether, in their opinion, the financial statements to which the report relates give a true and fair view of the state of affairs of the Commission as at the end of the financial year for which the financial statements are prepared and of the results of its operations and cash flows in the financial year.
(5) An auditor appointed under subsection (1) has a right of access at all reasonable times to the books, accounts, vouchers, records and documents kept by the Commission and is entitled to require from the officers of the Commission such information and explanations as he considers necessary for the performance of his duties as auditor.
(6) The Financial Secretary shall cause a copy of the report referred to in subsection (3), and a copy of the financial statements to which the report relates, to be laid on the table of the Legislative Council.
(7) The Director of Audit or another public officer authorized by the Director under subsection (8) may at any reasonable time—
(a) examine any books, accounts, vouchers, records or documents kept by the Commission; and
(b) if the Director or the public officer (as the case may be) considers appropriate, make a copy of the whole of, or any entry in, such books, accounts, vouchers, records or documents.
(8) The Director of Audit may authorize any public officer to perform any function for the purposes of subsection (7).

17. Investment of funds
The Commission may invest its funds which are not immediately required in the manner that the Financial Secretary approves.

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

25. Transfer and resumption of functions of Commission
(1) The Commission may request the Chief Executive in Council to transfer, by order (transfer order

26. Appointment of chief executive of recognized exchange company requires approval of Commission
No appointment of a person as chief executive of a recognized exchange company shall have effect unless the appointment has the approval in writing of the Commission.

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

27. Production of records, etc. by recognized exchange company
(1) The Commission may, by notice in writing served on a recognized exchange company, require the company to provide to the Commission, within such period as the Commission may specify in the notice—
(a) such books and records kept by it in connection with or for the purposes of its business or in respect of any trading in securities, futures contracts or OTC derivative products; and
(b) such other information relating to its business or any trading in securities, futures contracts or OTC derivative products,
as the Commission may reasonably require for the performance of its functions. (Amended 6 of 2014 s. 4)
(2) A recognized exchange company served with a notice under subsection (1) which, without reasonable excuse, fails to comply with the notice commits an offence and is liable on conviction to a fine at level 5.

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

28. Withdrawal of recognition of exchange company and direction to cease to provide facilities or services
(1) Subject to subsections (4), (5) and (6), the Commission may, after consultation with the Financial Secretary, by notice in writing served on a recognized exchange company—
(a) withdraw the company’s recognition as an exchange company with effect from a date specified in the notice for the purpose; or
(b) direct the company to cease with effect from a date specified in the notice for the purpose—
(i) to provide or operate such facilities as are specified therein; or
(ii) to provide such services as are specified therein.
(2) The Commission may by the notice served under subsection (1) permit the recognized exchange company to continue, on or after the date on which the withdrawal or direction is to take effect, to carry on such activities affected by the withdrawal or direction as the Commission may specify in the notice for the purpose of—
(a) closing down the operations of the company or ceasing to provide the services specified in the notice; or
(b) protecting the interest of the investing public or the public interest.
(3) Where the Commission has granted a permission to a recognized exchange company under subsection (2), the company shall not, by reason of its carrying on the activities in accordance with the permission, be regarded as having contravened section 19(1).
(4) The Commission may only serve a notice under subsection (1) in relation to a recognized exchange company that—
(a) fails to comply with any requirement of this Ordinance or with a condition imposed under section 19;
(b) is being wound up;
(c) ceases to operate a market that it has been authorized to operate by virtue of section 19; or
(d) requests the Commission to do so.
(5) Except where responding to a request under subsection (4)(d), the Commission shall not exercise its power under subsection (1) in relation to a recognized exchange company unless it has given the company a reasonable opportunity of being heard.
(6) Except where responding to a request under subsection (4)(d), the Commission shall give the recognized exchange company not less than 14 days’ notice in writing of its intention to serve a notice under subsection (1) and the grounds for doing so.
(7) Where the Commission withdraws a company’s recognition as an exchange company under subsection (1)(a), it shall cause notice of that fact to be published in the Gazette.
(8) A notice served under subsection (1)(a) shall not take effect—
(a) subject to paragraph (b), until the expiration of the period within which an appeal against the notice may be made under section 33; or
(b) if an appeal against the notice is made under section 33, until the appeal is withdrawn, abandoned or determined.
(9) A notice served under subsection (1)(b) shall take effect immediately.