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WEDNESDAY, JULY 20, 1988
"SO IT MUST BE QUESTIONABLE WHETHER THEY SHOULD BE INCLUDED THE DRAFT BASIC LAW," THE GOVERNOR SAID.
IN
WHILE CONCEDING THAT THE FIRST DRAFT HAD FLAWS OF WHICH THE DRAFTERS THEMSELVES HAD ADMITTED AS MUCH, THE GOVERNOR HOWEVER POINTED OUT THAT THE DRAFTERS HAD ALSO SHOWN A WELCOME WILLINGNESS ΤΟ LISTEN TO HONG KONG VIEWS ON WHAT THOSE FLAWS MIGHT BE AND TO MAKB CHANGES.
THEREFORE, HE SAID, THE JOINT DECLARATION, AND IN DUR COURSE THE BASIC LAW, PROVIDED THE ESSENTIAL FRAMEWORK TO ALLOW HONG KONG CONTINUE AS A LEADING INTERNATIONAL FINANCIAL CENTRE.
TO
TO
"IF YOU LIKE, THE GOLF COURSE IS THERE," HE SAID, "IT IS UP THE PLAYERS HOW WELL THEY PLAY ON IT AND WHETHER THEY SPEND MORE TIME ON THE FAIRWAY OR IN THE ROUGH.'
HI
FS ON INSIDER DEALING TRIBUNAL SYSTEM
REFERRING TO THE GOVERNOR'S SPEECH IN LONDON EARLIER TODAY (WEDNESDAY), IN WHICH MENTION WAS MADE TO INTRODUCING LEGISLATION TO GIVE MORE TEETH TO HONG KONG'S INSIDER DEALING TRIBUNAL SYSTEM, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID THIS EVENING THAT IT HAD BEEN AGREED IN PRINCIPLE THAT THE PRESENT SYSTEM BASED UPON THE INSIDER DEALING TRIBUNAL SHOULD BE RETAINED, AT LEAST FOR THE TIME BEING, BUT THAT THERE SHOULD BE SUBSTANTIALLY INCREASED SANCTIONS AGAINST INSIDER DEALERS. DETAILED PROPOSALS WILL BE SUBJECT ΤΟ THE ADVICE OF THE EXECUTIVE COUNCIL.
UNDER THE SECURITIES ORDINANCE, IT IS THE ROLE OF THE INSIDER DEALING TRIBUNAL TO DETERMINE WHETHER CULPABLE INSIDER DEALING HAS TAKEN PLACE, IDENTIFYING THE PERSONS INVOLVED AND THE EXTENT OF THEIR CULPABILITY. PUBLIC CENSURE IS THE ONLY SANCTION AGAINST A CULPABLE INSIDER AS THE LAW STANDS NOW. BOTH THE STANDING COMMITTEE ON COMPANY LAW REFORM AND THE SECURITIES COMMISSION HAVE CONSIDERED THE ISSUE IN SOME DEPTH AND HAVE AGREED THAT THE PRESENT LEGISLATION 19 UNSATISFACTORY AND THAT MORE EFFECTIVE DETERRENTS ARE REQUIRED.
TWO OPTIONS FOR TACKLING THE QUESTION OF INSIDER DEALING HAVE BEEN EXAMINED: STRENGTHENING THE PRESENT TRIBUNAL SYSTEM OR MAKING INSIDER DEALING A CRIMINAL OFFENCE. THERE WERE DIVIDED VIEWS IN BOTH THE STANDING COMMITTEE AND COMMISSION ON THE APPROPRIATE WAY FORWARD. THE MERITS AND DEMERITS OF THE TWO OPTIONS HAVE BEEN CAREFULLY CONSIDERED BY THE ADMINISTRATION, AND IT HAS BEEN DECIDED THAT CRIMINALISATION ROUTE SHOULD NOT BE FOLLOWED AT LEAST AT THIS STAGE. INSTEAD THE TRIBUNAL SYSTEM WILL BE RETAINED WITH SUBSTANTIALLY INCREASED SANCTIONS.
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THE
/MR JACOBS
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