Thursday, vctober 6, 1977
"At the same time, the Government considers that positive action
to overcome the problem has to be initiated.
While self-policing may work satisfactorily in other markets (though whether it actually does so is debatable) it would be difficult
to operate in Hong Kong. Accordingly, a third solution, appropriate to
Hong Kong's rather special situation, is now proposed.
The Insider Dealing Tribunal will have wide powers of inquiry
and will publish its findings.
"In many cases the tribunal's inquiries will no doubt lead to
the discovery of offences against the Securities Ordinance for which
sanctions are available.
"In cases involving insider dealing alone the disciplines of
the financial, commercial and professional communities of Hong Kong will
undoubtedly be applied and the risk of public exposure will effectively
deter would-be insider dealers," the spokesman said.
The detailed investigations which will precede the tribunal's
sittings will be conducted by the Office of the Commissioner for Securities.
On identifying instances of incider dealing, the Commissioner
for Securities will recommend to the Securities Commission, which will in
turn recommend to the Financial Secretary, cases to be referred to the
tribunal.
Additionally, the Financial Secretary has the power to refer a
case independently to the tribunal. The tribunal's report, which will be
made public, will be addressed to the Financial Secretary and will be
protected by qualified privilege.
/Background