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Wednesday, December 12, 1973
LEGISLATION TO PROTECT INVESTORS INTRODUCED IN LEGISLATIVE COUNCIL
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The Protection of Investors Bill 1973, introduced into the Legislative Council for the first time today, makes it an offence for anyone to induce investors by fraudulent and reckless means to buy and sell securities, or to invest in any profit making scheme based on securities, or any other form of property.
It also bans advertisements which invite the public to invest in any form of property.
In moving the second reading of the bill, the Financial Secretary, the Hon. C.P. Haddon-Cave, said the term "advertisement" was widely defined, and it would be an offence to have in one's possession a document containing such an advertisement if it was intended for issue.
There were a number of exemptions, however, the more important of which were prospectuses of companies, unit trusts and mutual funds, and advertisements containing offers made to the public by registered dealers in securities, or by persons who buy and sell property, other than securities, in the course of their busines8.
The Securities Commission also has the power to exempt any
advertisement.
The penalties for infringement are heavy and range from a fine of $500,000 and three years' imprisonment on conviction on indictment for con- travention of the provision regarding advertisement to a fine of $1 million and imprisonment for seven years for fraudulent or reckless inducement to invest.
Mr. Haddon-Cave .....
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