Amendment of section 146.
SECURITIES (AMENDMENT) BILL 1988
(3A) In subsection (1) "function" includes a power and a duty."; and
(b) in subsection (7) by inserting after "subsection (1)," the following—
3.
"subsection (3),”.
Section 146(1)(q) of the principal Ordinance is amended by delet- ing "sections 19 and" and substituting the following
"section".
Explanatory Memorandum
This Bill amends section 19 of the Securities Ordinance to empower the Commissioner for Securities to release to specified persons information obtained under the principal Ordinance. It is considered that the new discretions given to the Commissioner to disclose such information will provide for increased co-operation with law enforcement agencies in Hong Kong and with overseas regulatory authorities concerned with the securities markets. The Commissioner of Banking has similar powers under sections 120 and 121 of the Banking Ordinance (Cap. 155).
2. Clause 2(a) deletes subsections (1), (2) and (3) of section 19 of the principal Ordinance and inserts new subsections (1), (2), (3) and (3A). New subsection (1) creates a general prohibition against the disclosure of information obtained under the principal Ordinance. New subsection (2) specifies the persons to whom and, in some cases, the purpose for which, such information may be disclosed by the Commissioner notwithstanding that general prohibition. New subsection (3) creates a general prohibition against further disclosure—
(a) by persons to whom information has been disclosed under new
subsection (2); or
(b) by persons who have obtained such information from the persons
to whom it was originally disclosed,
unless that further disclosure has the consent of the Commissioner or, in the case of information disclosed under new subsection (2)(k), the consent of the Securities Commission.
3. Clause 2(b) amends section 19(7) of the principal Ordinance to provide that the penalty specified in that section shall also apply to a contravention of new section 19(3).
4. Clause 3 makes a minor consequential amendment to section 146(1)(q) of the principal Ordinance.
5. The Bill has no Public Service staffing or public expenditure implications.
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