FINANCIAL AND MONETARY AFFAIRS
are appointed by the Chief Executive and are broadly based and representative of market participants and relevant professions. Decisions relating to matters concerning the registration of persons and intervention in their business are subject to appeal to the Securities and Futures Appeals Panel (SFAP), the members of which are also independently appointed by the Chief Executive. Under the new Securities and Futures Bill introduced into the legislature in November 2000, the SFAP will be replaced by an independent full-time Securities and Futures Appeals Tribunal. A much wider range of the SFC's decisions will be subject to appeal to the tribunal. In November, a Process Review Panel (PRP) was established to undertake ongoing review of the fairness and consistency of the SFC's internal operational procedures. Members of the PRP are appointed by the Chief Executive.
Over the years, the SFC has developed a framework of securities and futures regulation that is on a par with internationally accepted standards.
The SFC considers investor education the first important step to investor protection. During the year, the SFC published two investor booklets, The A to Z of Stock Investing and Getting Started in Funds and MPF, and launched a new TV/radio Announcement in the Public Interest and bilingual poster campaign. The key message is 'Get the Facts before You Invest'. A number of other educational leaflets and articles were also published to increase investor awareness on topical investment issues, such as Equity-Linked Notes and unauthorised trading. New radio series, including 'Investors' Mastermind' and 'Chit Chat on Facts' were also launched. In addition, to 'train the trainers' and inculcate a healthy attitude towards investment, the SFC organised a series of Teachers' Workshops for secondary school teachers to provide them with basic knowledge about the securities, futures and funds industries and allow them to pass on that knowledge to their students. Educational columns were also published in major newspapers on a regular basis.
During the year, the SFC continued to participate in external relations and international activities, including the commission's work with the International Organisation of Securities Commissions (IOSCO). The SFC chairs the IOSCO Committee responsible for developing implementation and assessment methodologies for the IOSCO Objectives and Principles, and offering assistance to the international financial institutions in their use of financial Objectives and Principles. In addition, the SFC continues to participate in the five working groups of the Technical Committee of IOSCO.
The SFC will host the IOSCO Technical Committee meeting and Executive Committee meeting in January and February, 2002.
Insider Dealing Tribunal
The Insider Dealing Tribunal is an important feature of the regulatory framework for the securities market in Hong Kong. Established under the Securities (Insider Dealing) Ordinance, the tribunal looks into cases involving suspected insider dealing referred to it by the Financial Secretary. Since it commenced operation in 1994, the tribunal has successfully concluded 12 cases.
Under the Securities and Futures Bill, the Insider Dealing Tribunal will be replaced by a Market Misconduct Tribunal which will cover five other types of market misconduct in addition to insider dealings.
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