Clause 39

by deleting the words “or renewal of licences” in subsection (2)(a) and substituting the words “of financial adviser’s licences”;

by inserting, immediately after paragraph (a) of subsection (2), the following paragraphs:“(aa)the appointment of an individual as an appointed or provisional representative, the entering of his name or an additional type of financial advisory service for him in the public register of representatives, and the revocation or suspension of his status as an appointed or provisional representative;

by deleting paragraph (b) of subsection (2) and substituting the following paragraph:“(b)the activities of, and standards to be maintained by, a licensed financial adviser, exempt financial adviser or representative, including the manner, method and place of soliciting business and the conduct of such solicitation;”;

by deleting paragraph (f) of subsection (2) and substituting the following paragraph:“(f)the manner in which a licensed financial adviser, exempt financial adviser or representative conducts his dealings with the clients of the licensed financial adviser or exempt financial adviser, as the case may be;”;

by deleting the word “licensees” in subsection (2)(g) and substituting the words “licensed financial advisers and their appointed or provisional representatives”;

by deleting paragraph (h) of subsection (2) and substituting the following paragraph:“(h)the disclosure by a licensed financial adviser, exempt financial adviser or representative of any material interest that he may have in a proposed transaction relating to purchasing, subscribing for or trading in capital markets products;”;

by deleting paragraph (l) of subsection (2) and substituting the following paragraph:“(l)the maintenance by a proprietor or publisher of a newspaper of the particulars of any financial journalist who has contributed any advice, analysis or report concerning any securities, that has been published in the newspaper, and the provision of such particulars to the Authority;”;

by inserting, immediately after paragraph (l) of subsection (2), the following paragraph:“(m)the maintenance by a licensed financial adviser, representative of a licensed financial adviser and applicant for a financial adviser’s licence of registers of their interests in securities and their duties relating to the registers, and matters relating thereto; and”; and

by inserting, immediately after subsection (4), the following subsections:“(5) Where a person is charged with an offence for contravening a regulation made under subsection (2)(m), it shall be a defence for the person to prove —

that his contravention was due to his not being aware of a fact or occurrence, the existence of which was necessary to constitute the offence; and

that —

he was not so aware on the date of the summons issued for the charge; or

he became so aware before the date of the summons and complied with the regulation within 14 days after becoming so aware.(6) For the purposes of subsection (5), a person shall, in the absence of proof to the contrary, be conclusively presumed to have been aware of a fact or occurrence at a particular time which an employee or agent of the person, being an employee or agent having duties or acting in relation to his employer’s or principal’s interest or interests in the securities concerned, was aware of at that time.”.