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Wednesday, February 13, 1974

Mr. Haddon-Cave made it clear that the onus to provide money

for the fund is on each exchange. How it raised the money was a mattor

entirely for each exchange to decide.

The primary and immediate purpose of the bill, he explained, is

to give more protection to the investor rather than to protect the interesta

of the broking community. He added, however, that it was not intended

in any way to frustrate the legitimate activities of brokers.

"Indeed, brokers have every right to be protected from unscrupulous

clients and staff, but it is the government's view that this should be

achieved by their own arrangements rather than by statutory means,"

Summing up, the Financial Secretary said: "in a Bill as complex

as this dealing as it does with a constantly evolving industry, it is

inevitable that further amendments will be necessary perhaps sooner

rather than later,

"Indeed, should the Securities Commission and the government be

persuaded that certain amendments are necessary even before a Part is

implemented then we would be prepared to introduce them; but I haston

to say that this would not be agreed to lightly for the provisions of

the Bill as enacted must now be tested by experience."

Earlier, the Hon. Woo Pak-chuen called on the stock exchanges and

all stockbrokers to accept the Securities Bill "in good spirit and with the

determination to co-operate with the Commissioner for Securities in putting

those provisions into effect,"

"The final result is a piece of legislation which should serve both

to ensure proper and adequate regulations of stock exchange transactions in

Hong Kong and to enhance the international reputation of Hong Kong as a

financial contre," he said.

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