1 November 2000

Dear Sir / Madam,

Under the Memorandum of Understanding between the HKMA and the Securities and Futures Commission (SFC), the HKMA is responsible for supervising the securities related activities of authorized institutions which have been granted exempt dealer status (exempt AIs) by the SFC. To facilitate the supervision of such activities, the HKMA has developed a new return to collect information from the exempt AIs. A copy of the return form together with the completion instructions are attached.

The return is to be submitted by exempt AIs on a 6-monthly basis. The first return covering the period from 1 July to 31 December 2000 is to be submitted by 31 January 2001. Subsequent returns are to be submitted within 21 days after the end of June and December each year.

The return should be submitted through the STET (Submission Through Electronic Transmission) System by using the new template upgrade software and instructions, which would be available for downloading from our private website (www.hkfin.net) in mid- January 2001.

A copy of a formal notice under section 63(2) of the Banking Ordinance giving effect to the introduction of the new return is attached. If you have any question concerning the return, please contact Mr K.L.Yiu at 28781598 or Ms Brenda Tao at 28781622.

Yours faithfully,

D T R Carse
Deputy Chief Executive

Letter to the SFC

Our Ref.:G12/34/9C (00)

1 November 2000

To:   All Authorized Institutions in Hong Kong

Pursuant to section 63(2) of the Banking Ordinance, I hereby require all authorized institutions in Hong Kong that have been granted exempt dealer status by the Securities and Futures Commission to submit to me the information specified in the Hong Kong Government Form MA(BS)14.

The first return shall be submitted to me not later than 31 January 2001 covering the period from 1 July 2000 to 31 December 2000. After this, all future returns shall be submitted not later than 21 days after the end of June and December each year.