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FRIDAY, JUNE 28, 1985
+TO ASSIST IN BOTH BUILDING AND MAINTAINING THE FUND THE PROPOSALS ENVISAGE THE RETENTION OF PROFITS FROM INVESTMENT OF THE FUND AND ALLOW FOR A LEVY TO BE COLLECTED IN RESPECT OF EACH BUY OR SELL CONTRACT TRADED ON THE FUTURES EXCHANGE.
THIS LEVY WILL BE SET BY THE COMMODITIES TRADING COMMISSION FROM TIME TO TIME AND CAN BE VARIED TO MEET THE NEED FOR MONIES IN THE FUND. THE COMMISSION HAS PROPOSED THAT INITIALLY THE LEVY WILL BE SET AT 50 CENTS FOR EACH BUY AND EACH SELL CONTRACT, THAT
IS AT $1 PER TRANSACTION.
+ IF CLAIMS ARE SUCH THAT THE FUND IS INADEQUATE AT ANY TIME, THE EXCHANGE MAY BE LIABLE TO PAY A FURTHER $50 000 PER
SHAREHOLDER, IF THE COMMISSION REQUIRES, HE SAID.
THE COMMISSION HAS ALSO PROPOSED THAT THE MAXIMUM PAYOUT ON ANY DEFAULT BY A MEMBER OF THE EXCHANGE COMPANY SHOULD BE INCREASED TO $2 MILLION, IN LINE WITH THE SECURITIES ORDINANCE.
+FURTHER, THE PROPOSALS ENVISAGE A STREAM-LINED PROCEDURE
FOR THE LODGING AND PROCESSING OF CLAIMS AND MAKE NEW PROVISIONS FOR APPEAL'S AGAINST THE DISALLOWANCE OF CLAIMS.
+THE PROPOSALS ALSO CLEARLY DEFINE THE TYPE OF TRADING FOR WHICH COMPENSATION IS AVAILABLE. THIS WILL NOW BE CONFINED TO FUTURES TRADING EXECUTED ON THE FLOOR OF THE HONG KONG FUTURES EXCHANGE. COMPENSATION WILL BE AVAILABLE TO THE CLIENTS OF A DEFAULTING MEMBER, WHETHER THEY ARE RESIDENT IN HONG KONG OR ELSEWHERE, THE SPOKESMAN SAID.
IF THE LEGISLATIVE COUNCIL ACCEPTS THE PROPOSED AMENDMENTS, IT IS INTENDED THAT THE NEW FUND WOULD COME INTO OPERATION UPON THE HONG KONG FUTURES EXCHANGE COMPLETING ITS INTERNAL REORGANISATION WITH WIDENED MEMBERSHIP AND COMMENCING TRADING OF NEW CONTRACTS.
*THE GOVERNMENT BELIEVES THAT THE PROVISIONS, WHEN OPERATED IN CONJUCTION WITH THE REGULAR MONITORING AND CONTROL OF MEMBERS BY THE HONG KONG FUTURES EXCHANGE, SHOULD ENSURE THAT THE NEW COMPENSATION FUND WILL PROVIDE A CONTINUING AND ADEQUATE SOURCE OF COMPENSATION FOR USERS OF THE EXCHANGE, HE SAID.
OTHER AMENDMENTS PROPOSED BY THE BILL INCLUDE THE ESTABLISHMENT OF A SEPARATE APPEALS COMMITTEE, WHICH WILL BE EMPOWERED TO HEAR APPEALS ARISING THROUGH THE PROVISIONS OF THE ORDINANCE, AND WHICH SHOULD ALSO ALLOW A QUICK AND INEXPENSIVE AVENUE OF APPEAL FOR DISSATISFIED CLAIMANTS.
ANYONE
THE BILL WILL RECEIVE ITS FIRST READING ON JULY 10, WHO WISHES TO COMMENT ON ITS PROVISIONS MAY WRITE TO UMELCO, AT SWIRE HOUSE, 12TH FLOOR OR TO THE SECRETARY FOR ECONOMIC SERVICES AT THE CENTRAL GOVERNMENT OFFICES, LOWER ALBERT ROAD, HONG KONG.
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