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

83. Approval of rules or amendments to rules of recognized investor compensation companies
(1) Subject to subsection (7), no rule (whether or not made under section 82) of a recognized investor compensation company or any amendment thereto shall have effect unless it has the approval in writing of the Commission.
(2) A recognized investor compensation company shall submit or cause to be submitted to the Commission—
(a) for its approval the rules and every amendment thereto that require approval under subsection (1), together with explanations of their purpose and likely effect, including their effect on the investing public, in sufficient detail to enable the Commission to decide whether to approve them or refuse to approve them; and
(b) for its information the rules which belong to a class the subject of a declaration under subsection (7) and every amendment to the rules, as soon as reasonably practicable after they have been made.
(3) The Commission shall, not later than 6 weeks after the receipt of a submission under subsection (2)(a) from a recognized investor compensation company, by notice in writing served on the company, give its approval or refuse to give its approval (together with its reasons for the refusal) to the rules or amendment of the rules (as the case may be) or any part thereof, the subject of the submission.
(4) The Commission may give its approval under subsection (3) subject to requirements which shall be satisfied before the rules or amendment of the rules or any part thereof take effect.
(5) The Commission may in a particular case, with the agreement of the recognized investor compensation company concerned, extend the time prescribed in subsection (3).
(6) The Financial Secretary may, after consultation with the Commission and the recognized investor compensation company concerned, extend the time prescribed in subsection (3).
(7) The Commission may, by notice published in the Gazette, declare any class of rules of a recognized investor compensation company to be a class of rules which are not required to be approved under subsection (1) and, accordingly, any rules of the company which belong to that class (including any amendment thereto) shall have effect notwithstanding that they have not been so approved.
(8) A recognized investor compensation company shall make its rules available to the public in a manner approved by the Commission.
(9) Neither the rules under section 82 nor a notice under subsection (7) is subsidiary legislation.

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

84. Production of records, etc. by recognized investor compensation company
(1) The Commission may, by notice in writing served on a recognized investor compensation 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 the management and administration of the compensation fund under Part XII; and
(b) such other information relating to its business or the management and administration of the compensation fund under Part XII,
as the Commission may reasonably require for the performance of its functions.
(2) A recognized investor compensation 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.

85. Withdrawal of recognition of investor compensation company
(1) Subject to subsections (3), (4) and (5), the Commission may, after consultation with the Financial Secretary, by notice in writing served on a recognized investor compensation company, withdraw the company’s recognition as an investor compensation company with effect from a date specified in the notice for the purpose.
(2) The Commission may by the notice served under subsection (1) permit the recognized investor compensation company to continue, on or after the date on which the withdrawal is to take effect, to carry on such activities affected by the withdrawal as the Commission may specify in the notice for the purpose of—
(a) closing down the operations of the company; or
(b) protecting the interest of the investing public or the public interest.
(3) The Commission may only serve a notice under subsection (1) in relation to a recognized investor compensation company that—
(a) fails to comply with any requirement of this Ordinance or with a condition imposed under section 79;
(b) is being wound up;
(c) ceases to perform any function transferred to it under section 80; or
(d) requests the Commission to do so.
(4) Except where responding to a request under subsection (3)(d), the Commission shall not exercise its power under subsection (1) in relation to a recognized investor compensation company unless it has given the company a reasonable opportunity of being heard.
(5) Except where responding to a request under subsection (3)(d), the Commission shall give the recognized investor compensation 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.
(6) Where the Commission withdraws a company’s recognition as an investor compensation company under subsection (1), it shall cause notice of that fact to be published in the Gazette.
(7) A notice served under this section shall take effect immediately.

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

86. Appeals
(1) A company served with a notice under section 85(1) may appeal against the notice to the Chief Executive in Council not later than 14 days after the date of service of the notice or such longer period (if any) as the Commission specifies in the notice.
(2) The decision of the Chief Executive in Council on an appeal under subsection (1) shall be final.

87. Subrogation of recognized investor compensation company to rights, etc. of claimant on payment from compensation fund
(1) Where a recognized investor compensation company makes any payment out of the compensation fund in respect of any claim made under rules made under Part XII—
(a) subject to subsection (1A), the company shall be subrogated, to the extent which that payment bears to the loss sustained (without taking into account any compensation paid or payable out of the compensation fund for the loss) by the claimant by reason of the default on which the claim was based, to all the rights and remedies of the claimant in relation to the loss; and (Amended 7 of 2004 s. 55)
(b) the respective rights of the claimant and the company in bankruptcy or winding up or by legal proceedings or otherwise to receive in respect of the loss—
(i) any sum out of the assets of the person concerned who is in default; or
(ii) any property held on trust by that person for the claimant,
shall rank equally.
(1A) The company is not subrogated to any rights and remedies of the claimant in respect of compensation from the Deposit Protection Scheme Fund established by section 14 of the Deposit Protection Scheme Ordinance (Cap. 581). (Added 7 of 2004 s. 55)
(2) All assets (whether in cash or otherwise) recovered by the recognized investor compensation company under subsection (1) shall be dealt with in such manner as the Commission may direct and shall become part of the compensation fund.