THURSDAY, JANUARY 7, 1988

GOVERNMENT STUDIES ISSUES OF IMPORTANCE TO INVESTORS

WHICH

ARE

THE GOVERNMENT IS CURRENTLY ADDRESSING WIDER ISSUES OF IMPORTANCE TO THOSE INVESTING IN STOCKS AND SHARES, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (THURSDAY).

HE SAID THIS WAS IN ADDITION TO THE WORK OF THE SECURITIES REVIEW COMMITTEE WHOSE REPORT WOULD, HE BELIEVED, PROVIDE THE RIGHT FOUNDATION FOR A MAJOR OVERHAUL OF OUR SECURITIES LEGISLATION AND THUS ENABLE US TO BRING OUR REGULATORY FRAMEWORK AND MARKET

FULLY UP STRUCTURES

TO THE STANDARDS NOW EXPECTED OF A MAJOR INTERNATIONAL STOCK MARKET.

NENDICK WAS SPEAKING AT THE OPENING OF THE SEMINAR MR

ASSOCIATION OF IN PRACTICE" ORGANISED BY THE INTERNATIONAL IN ECONOMICS AND BUSINESS MANAGEMENT.

"FINANCE STUDENTS

ON HE SAID THE STANDING COMMITTEE

COMPANY LAW REFORM HAD RECOMMENDED THAT, IN LINE WITH THE PRACTICE IN OTHER MAJOR CENTRES, THERE SHOULD BE FULL DISCLOSURE OF THE BENEFICIAL OWNERSHIP OF SHARES OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS OF PUBLIC LISTED COMPANIES AND OF THEIR SHARE DEALINGS.

"SUCH DISCLOSURE REQUIREMENTS WOULD REVEAL WHO ACTUALLY

г

DEALING MORE

DIFFICULT,

CONTROLLED A COMPANY AND THUS MAKE INSIDER HE SAID.

COMMITTEE'S PROPOSALS

WERE

WERE

MR NENDICK SAID THE STANDING CONSIDERED AND SUPPORTED BY THE SECURITIES COMMISSION AND SUBSEQUENTLY SET OUT 'N THE FORM OF A WHITE BILL FOR PUBLIC COMMENT.

THAT, BASED ON COMMENTS

MAINLY PERIOD,

FROM WAS A GENERAL

HE SAID IT WAS ENCOURAGING TO FIND

THE RECEIVED DURING

THREE-MONTH CONSULTATION PROFESSIONAL BODIES AND THE BUSINESS COMMUNITY, THERE CONSENSUS THAT MORE DISCLOSURE WOULD BE IN THE PUBLIC INTEREST.

AND, WHERE

THESE COMMENTS WERE NOW BEING CAREFULLY CONSIDERED APPROPRIATE, WOULD BE REFLECTED IN THE REVISED BILL, HE SAID.

ΤΟ INTRODUCE IT INTO IT WAS THE GOVERNMENT'S INTENTION LEGISLATIVE COUNCIL IN THE CURRENT LEGISLATIVE SESSION.

THE

THAT ADDRESSED EFFECTIVE VIEWS

IN

AS

ME

SAID NENDICK AS REGARDS INS DER DEALING ITSELF,

COMPANY LAW REFORM MARCH 1987, THE STANDING COMMITTEE ON

AND CONCLUDED THAT A THE ISSUE OF INSIDER DEALING

MORE DETERRENT WAS REQUIRED, ALTHOUGH THEY WERE DIVIDED IN THEIR TO THE APPROPRIATE WAY FORWARD.

REVISIONS HE SAID TWO POSSIBLE

ΤΟ THE PRESENT

ARRANGEMENTS

WERE IDENTIFIED.

THE SANCTIONS

UNDER THE EXISTING FINANCIAL PENALTIES);

THE FIRST WAS TO INCREASE TRIBUNAL SYSTEM (INCLUDING THE INTRODUCTION OF THE SECOND, TO MAKE INSIDER DEALING A CRIMINAL OFFENCE.

"BOTH OPTIONS

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