Annex A
Extract from the Report of the Securities Review Committee
Summary of SRC recommendations in respect of the new Securities and Futures Commission
Structure
Powers
(a) It should be a statutory body outside the
civil service (para. 9.35).
(b) It should be headed and staffed by full time regulators but to provide the necessary checks and balances, it should be governed by a small board, preferably with seven members
a Chairman, deputy Chairman, two other full-time directors and three non-executive directors (para. 9.38).
:
The
(c) It should have the benefit of an Advisory Committee comprising six to ten outside market experts and professionals to assist in the development of policies. Chairman and Deputy Chairman of the new SC should sit on the Advisory Committee as ex officio members and the SC Chairman should also chair the Advisory Committee (paras. 9.50-53).
(d) It should have a series
fulfil its
regulatory
Commission
of powers to such statutory lie with the There is a need for
functions and powers should itself.
the new SC's determinations to be subject to appeal (paras. 9.91-94).
(e) It should have extensive reserve powers to intervene in the business of the Exchanges if they fall down on their job (paras. 9.95-96).
(f) It should have the power to initiate investigations and to bring summary proceedings without compromising the Attorney General's constitutional position of ultimate responsibility for criminal prosecutions. It should have the power to appoint inspectors
to
carry
investigations (paras. 9.100-111).
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