Annex E
Summary of public reaction
the SRC's recommendations for the establishment
of a Securities and Futures Commission
Ad Нос Group to study legislation governing the regulation of the Stock Exchange and Futures Exchange
LeaCo
1.
At an initial meeting of the LegCo Ad Hoc Group with the Administration held on 2 June 1988, several LegCo members voiced concern over the powers and functions of the new regulatory authority vis-a-vis those of the Government and its relationship with other sectors of the economy.
Submissions
Stock Exchange of Hong Kong
2.
The SEHK endorsed the SRC's recommendations for a practitioner-based regulatory system, in particular, its emphasis on the self-regulatory role of the Exchanges. The Exchange urged the Government to pay special attention to the costs of regulation and the accountability of the new regulatory authority. Specifically, it requested that
(a) the Government should, in conjunction with the Exchanges, work out the role and costs of the Exchanges and the new regulatory authority in the regulation of the markets;
Government
(b) the
regulation
suffocate market development; and
should
ensure
that
should
promote but
not
a
body should be framework they would not be
of
(c) powers of the regulatory
exercised
within
accountability SO that
abused.
-
Hong Kong Futures Exchange
3.
SRC's
The HKFE endorsed the
recommendations in principle and urged for their early implementation. It however felt that the accountability of the new regulatory authority could be enhanced by making the following changes to the recommendations
1