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Wednesday, March 29, 1972

"The problem is that of finding a workable balance between direct

Government supervision and self-regulation by the exchanges themselves,

" he said.

He said that considerable discussion had taken place between

Mr. Selwyn and various interested parties with a view to finding the most

satisfactory plan for Hong Kong.

"Some tentative conclusions have been reached which will enable

a draft Bill to be sketched out, but much work remains to be done on the

details," he said.

The proposal to license investment advisers and portfolio managers

had been given low priority, as recommended by the Committee itself, he said.

As regards company prospectuses, the Financial Secretary said a

draft Companies (Amendment) Bill giving effect to the Committee's recommendations

had been finalised and would be submitted to the Executive Council within

the next few weeks.

On take-over bids, he said consideration would be given to that

aspect of the Report soon after the Committee's more urgent recommendations

had been dealt with.

As regards mutual funds and unit trusts, the Financial Secretary

said that a first draft of a Unit Trusts Bill had been completed.

Drafting of a Mutual Funds Bill was also proceeding, but might

take rather longer in the absence of corresponding British legislation.

/He explained

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