증권 및 선물(계약서, 계좌명세서 및 영수증) 규칙 / Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules

6.1 The provisions in the SFO regarding the keeping of records are supplemented, in s. 152, SFO, by the recognition that various documents should be given to clients to provide evidence and keep them informed of the transactions carried out by the intermediaries and associated entities on their behalf. The SFC has made the Contract Notes Rules under s. 152, SFO regarding such documents. The Contract Notes Rules relating to the provision of contract notes, statements of account and receipts to clients do not apply to PIs:

(a) if they are PIs as specified in Schedule 1, SFO, the intermediary has notified the clients in writing about the non-provision of such documents, and the clients do not object; or

(b) if they are PIs as specified in the Securities and Futures (Professional Investor) Rules (“PI Rules”) and the clients have agreed in writing not to receive these documents.

Contract notes
6.2 A contract note shall include details of contracts for:
(a) dealings in securities, including securities borrowing and lending (“SBL”) transactions;

(b) dealings in futures contracts; and

(c) LFET.

It is usually prepared in respect of a single transaction but several contracts on the same day for the same client may be included in a single contract note or consolidated into the daily statement. It must be issued by the intermediary to the client or any designated person no later than the second business day after entering into the contract.

6.3 The contract note must contain the name and account number of the client, the name under which the intermediary carries on business, and full particulars of the contract; where the intermediary is acting as a principal, an indication that it is so acting (unless the contract is an leveraged foreign exchange contract (“LFE contract”)); whether the account is a margin account; and additional details as specified in the Contract Notes Rules for:
(a) securities contracts;

(b) futures contracts; and

(c) LFE contracts.

Daily statements of account
6.4 A statement of account may be a daily or a monthly statement. A daily statement must be prepared:
(a) by intermediaries providing securities margin finance (“financial accommodation”) and their associated entities when specified events, including deposit or withdrawal of client assets take place ; and

(b) by intermediaries conducting margined transactions (see Note to section 6.6 below) with or on behalf of a client, both when the margined transaction is entered into and also when any margined transaction is closed.

It must be issued to the client no later than the end of the second business day after the specified events take place. All daily statements must contain the information about the client and intermediary mentioned in section 6.3 above, and the preparation date of the statement.

6.5 Statements relating to securities margin finance must also include:
(a) the opening and closing balances of the account and all movements in balance during the day;

(b) the quantity, market price and value of each description of client securities and collateral;

(c) the margin ratio and margin value of each description of securities and collateral as at the end of the day; and

(d) details of all movements of client securities and collateral during that day, etc.

6.6 Statements relating to margined transactions must also include:
(a) the opening and closing balances of the account and all movements in balance during the day;

(b) the quantity and market price and value of each description of security provided by or on behalf of the client in relation to each margined transaction and details of all movements of any such security during that day;

(c) details of each margined transaction that is closed during that day, including an indication where the closure was initiated by the intermediary;

(d) all floating profits and floating losses in respect of open positions held for that account calculated as at the end of that day and the prices used for such purposes;

(e) the net equity in that account at the end of that day; and

(f) a list of all open positions held, their minimum margin requirement and the margin excess or margin shortfall for that account as at the end of that day, etc.

Note: A margined transaction refers to a contract which requires a client entering into the contract to pay a margin to the intermediary or provide security other than under a financial accommodation agreement.

Monthly statements of account
6.7 A monthly statement must be prepared by an intermediary for all clients. All monthly statements must contain the information about the client and intermediary mentioned in section 6.3 above, and the preparation date of the statement. They should also include full details of:

(a) all contracts entered into by the intermediary for the client during the month;

(b) outstanding balances of the account at the beginning and end of the month, and the movements in these balances during the month; and

(c) all open positions held at the end of the month, etc.

6.8 The statement must be issued within 7 business days of the end of each monthly accounting period (which can be 4-weekly cycles and not necessarily calendar months; also, portfolio asset managers are allowed 10 business days for issuing monthly statements) to the client or his designated person. The only case when no monthly statement needs to be issued is if there is absolutely no activity whatsoever on the account during the month and no balances at the end of it.

6.9 An asset manager does not need to prepare monthly statements of account for authorized CISs that it manages.
(For more details regarding the above, please refer to the Contract Notes Rules.)

Receipts
6.10 Receipts must be issued to the client by an intermediary or an associated entity on receiving client assets or security by the end of the second business day after receiving them (i.e. T+2). No receipts are required to be given in some cases where the client has received satisfactory confirmation in other ways.

Other matters
6.11 The general rule is that a client is entitled:
(a) to receive copies of contract notes, statements of account and receipts as soon as practical upon request; and

(b) upon applying to the SFC, and subject to the SFC giving directions, to inspect copies of contract notes, statements of account and receipts kept by the intermediary.

6.12 The intermediary or associated entity must retain:
(a) contract notes, daily statements of account and receipts issued for a period of at least 2 years; and

(b) monthly statements of account for a period of at least 7 years.

6.13 An intermediary or associated entity that becomes aware of a failure to comply with the specified provisions of these Rules must notify the SFC within one day. If it fails to comply with the Contract Notes Rules without reasonable excuse, it will have committed an offence and may be fined.

Revision questions:
Question 9: Do the Contract Notes Rules apply to PIs?
Answer 9: No, provided that certain conditions are met (see section 6.1 above).
Question 10: What is the difference between contract notes and statements of account?
Answer 10: A contract note contains details of one or more specific transactions. A statement of account will normally contain details of the state of an account between the intermediary and the client, including opening and closing balances of assets and money and the movement in these balances during the period covered by the statement of account. A statement of account may, if desired or arranged, also include the full details of transactions contained in the respective contract notes.

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