:
TUESDAY, JULY 12, 1988
CREATION OF SECURITIES AND FUTURES COMMISSION
THE FINANCIAL SECRETARY, MR PIERS JACOBS, ANNOUNCED TODAY (TUESDAY) THAT THE GOVERNMENT HAS ACCEPTED THE PROPOSAL OF THE SECURITIES REVIEW COMMITTEE ΤΟ ESTABLISH A NEW REGULATORY BODY OUTSIDE THE CIVIL SERVICE FOR THE SECURITIES AND FUTURES INDUSTRY,
THE BODY WILL BE CALLED THE SECURITIES AND FUTURES COMMISSION.
COMMITTEE RECOMMENDATION THAT FUNDING FOR THE NEW COMMISSION SHOULD COMB MAINLY FROM THE MARKET BUT ALSO PARTLY FROM GOVERNMENT. DETAILS WILL BE WORKED OUT IN CONJUNCTION WITH THE TWO EXCHANGES," MR JACOBS SAID.
"WE AGREE WITH THE SECURITIES REVIEW
"WE MUST ENSURE THAT THE COSTS OF INTERMEDIATION WILL NOT COMPARE UNFAVOURABLY WITH THOSE OF OTHER MAJOR FINANCIAL CENTRES, BUT MUST AVOID TOO MUCH OF THE BURDEN FALLING ON THE ORDINARY TAXPAYER RATHER THAN THE USERS OF THE MARKETS.
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WE SHALL GIVE CAREFUL CONSIDERATION TO THE NEED FOR ADEQUATE CHECKS AND BALANCES IN DRAFTING THE CONSTITUTION AND POWERS OF THE NEW REGULATORY BODY.
"IN PARTICULAR, THERE WILL BE STATUTORY PROVISIONS FOR A RIGHT OF APPEAL AGAINST ITS MORE SIGNIFICANT DECISIONS.
"
REITERATING THE GOVERNMENT'S DETERMINATION TO BRING EARLY IMPROVEMENTS TO THE REGULATION AND OPERATION OF THE SECURITIES AND FUTURES INDUSTRY, MR JACOBS SAID: "WE ARE FIRMLY COMMITTED ΤΟ BRINGING HONG KONG'S REGULATORY FRAMEWORK AND MARKET STRUCTURES IN LINE WITH THOSE IN OTHER CENTRES IN ORDER ΤΟ FACILITATE CONTINUING DEVELOPMENT AS A MAJOR FINANCIAL MARKET.
ITS
PRACTITIONER-BASED
"WE SHALL ENDEAVOUR TO CONSTRUCT A ROBUST REGULATORY SYSTEM, TO BE SUPERVISED BY AN EFFECTIVE WATCHDOG EQUIPPED WITH THE NECESSARY RESOURCES AND POWERS.
"THIS SYSTEM SHOULD AIM TO PROMOTE, BUT
DEVELOPMENT.
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NOT STIFLE, MARKET
IMPLEMENTATION
THE FOLLOWING PRESS STATEMENT ON THE SECURITIES REVIEW COMMITTEE'S RECOMMENDATIONS FINANCIAL SECRETARY AT A PRESS CONFERENCE THIS
OF THE
WAS ISSUED BY THE AFTERNOON:
"THE EXECUTIVE COUNCIL HAS THIS MORNING ENDORSED THE GENERAL PRINCIPLES FOR ESTABLISHING THE SECURITIES AND FUTURES COMMISSION (SFC) OUTSIDE THE CIVIL SERVICE TO REPLACE THE EXISTING SECURITIES COMMISSION, THE COMMODITIES TRADING COMMISSION AND THE OFFICE OF THE COMMISSIONER FOR SECURITIES AND COMMODITIES TRADING.
[
/THE SFC