ROBALS
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THE HAY DAVISON SECURITIES COMMITTEE REPORT :
CALL ON LORD GLENARTHUR BY MR NICK MACANDREW : 12 JULY 1988
POINTS TO MAKE
We and Hong Kong Government welcome Report and thrust of its recommendations. A valuable blueprint for future developments.
Hong Kong Government are firmly committed to maintaining Hong Kong's status as an international financial centre.
ensure that the necessary steps are taken to achieve it.
They will
Recommendations for changes in structure of Stock and Futures Exchanges are on sensible lines. But many difficult and complex
issues are involved.
Hong Kong Government have therefore established special team to formulate specific proposals as soon as practicable for submission
to Executive Council.
Hong Kong Government will continue to encourage self-regulation in securities industry, as recommended in Report, and will try to provide adequate checks and balances.
A significant number of recommendations are for two exchanges to implement. Discussions with them and other interested parties in the security and financial sectors are under way. We welcome action by Stock Exchange to put in hand establishment of Council in line with Report's recommendations.
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Hong Kong Government estimate that it will take about two years to implement bulk of recommendations many of which will require new legislation although some fundamental changes may have priority. Establishment of regulatory body outside civil service is one of main recommendations of Report. Hong Kong Government hope to take decision in principle on this recommendation shortly.
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