HONG KONG LEGISLATIVE COUNCIL 18 January 1989
香港立法局—————————— 一九八九年一月十八日
57
During an investigation by the commission, a person who is being asked questions is not excused from answering on the ground that his answer may tend to incriminate him, but nevertheless that answer cannot be used in subsequent criminal proceedings.
Clauses 35 to 43 give powers to the commission to intervene in the business of an intermediary, either to require him to take, or to prevent him from taking, particular actions, if the commission believes such intervention is desirable in the interest of the investing public, or that a registered person is no longer fit to carry on his business, or he has failed to comply with his statutory obligations.
At present, the commissioner only has power to revoke or suspend registration, and such action can only be taken after an inquiry, which may take some time. The new intervention power is intended to enable the commission to take swift action if necessary to protect investors. Sub-clause 35(3) provides that the commission will be obliged to notify the Stock Exchange or the Futures Exchange before exercising any intervention power against one of its members.
The commission will also have to state its reasons for exercising a power of intervention in its notice to the registered person concerned. Notices will take effect at the time specified in them and there is no question of their having retroactive effect.
Sir, Part VI of the Bill contains special provisions relating to the exchanges and clearing houses. Clause 44 empowers the Governor in Council to transfer some of the commission's regulatory functions to the exchanges in the future or to order the resumption of those functions. Clause 45 allows exchange of information between the commission, and the exchanges and clearing houses. Clauses 46 and 47 seek to vest in the commission powers, in line with the Securities Review Committee's recommendations, to issue restriction notices requiring the exchanges and clearing houses to amend their constitution or to make changes in their management and operations. They also empower the commission to issue orders suspending the functions of the governing bodies, committees or chief executives of the exchanges and clearing houses. But it should be noted that the commission may not exercise such powers without prior consultation with the Financial Secretary.
Part VII deals with the funding aspects. As I have said a moment ago, the commission will be funded largely by the markets through fees, charges and transaction levies.
The Schedule to the Bill contains the amendments and repeals made by clause 60. Members will wish to note that the Schedule transfers certain powers