WEDNESDAY, JULY 20, 1988
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MR JACOBS SAID: "WE ARE NOT, HOWEVER, DISMISSING THE CONCEPT OF CRIMINALISATION ENTIRELY. WE WILL KEEP THE MATTER UNDER REVIEW IN THE LIGHT OF EXPERIENCE GAINED ONCE THE NEW SANCTIONS ARE IN OPERATION. CRIMINALISATION IS THE COMMUNITY'S UNIQUE CONDEMNATION OF A PARTICULAR ACTIVITY AND THE POSSIBILITY OF FOLLOWING THIS OPTION IF THE NEW SANCTIONS DO NOT WORK MUST NOT BE RULED OUT.
*
MR JACOBS CONTINUED: "THERE ARE MERITS IN THE TRIBUNAL SYSTEM. THE PROCEEDINGS ARE INVESTIGATIVE AND THERE IS THEREFORE SOMEWHAT MORE LATITUDE COMPARED WITH A CRIMINAL TRIAL. THE PERSON UNDER INVESTIGATION BY THE TRIBUNAL IS BOUND TO ANSWER ALL QUESTIONS THAT ARE PUT TO HIM. IN CRIMINAL PROCEEDINGS THE ACCUSED IS ENTITLED то REMAIN SILENT. ACCORDINGLY, UNDER THE TRIBUNAL SYSTEM IT SHOULD BE EASIER TO ASCERTAIN THE FACTS."
THE ADDITIONAL SANCTIONS IT INCLUDE EMPOWERING THE TRIBUNAL:
(A)
(B)
(C)
(D)
(E)
IS PROPOSED ΤΟ INTRODUCE
TO MAKE AN ORDER TO BAN A CULPABLE INSIDER DEALER FROM ACTING AS A DIRECTOR OF ANY COMPANY OR TAKING PART IN THE MANAGEMENT OF ANY COMPANY;
TO REFER ANY CULPABLE PROFESSIONAL ΤΟ THE APPROPRIATE PROFESSIONAL ASSOCIATION FOR DISCIPLINARY ACTION;
TO REFER THOSE INSIDER DEALERS WHO ARE PROFESSIONALLY INVOLVED IN THE SECURITIES MARKET TO THE SECURITIES AND FUTURES COMMISSION FOR DISCIPLINARY ACTION;
TO REQUIRE THE DISGORGEMENT OF ANY PROFITS IMPROPERLY MADE OR LOSSES IMPROPERLY AVOIDED, AND TO IMPOSE A PENALTY OF UP TO THREE TIMES THE PROFITS MADE; AND
TO ISSUE A NOTE OF CENSURE AGAINST THOSE WHO, WHILST NOT FOUND TO BE ACTUAL INSIDER DEALERS, ARE DETERMINED TO HAVE BEEN CLOSELY ASSOCIATED WITH THE ACTIVITY.
IT IS PROPOSED THAT HEARING OF THE TRIBUNAL WOULD IN FUTURE NORMALLY BE HELD IN PUBLIC, BUT THE TRIBUNAL WOULD HAVE DISCRETION ΤΟ CONDUCT HEARINGS IN CAMERA.
IT IS CONSIDERED THAT THE ENHANCED SANCTIONS SHOULD PROVE AN EFFECTIVE DETERRENT AGAINST INSIDER DEALING, WHILE THE PROVISIONS IN THE RECENTLY ENACTED SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE WOULD MAKE INSIDER DEALING HARDER TO CONCEAL. LEGISLATIVE AMENDMENTS TO THE SECURITIES ORDINANCE WOULD BE REQUIRED то BRING ABOUT THE INCREASED SANCTIONS AND A BILL WOULD BE INTRODUCED INTO THE LEGISLATIVE COUNCIL IN THE EARLY PART OF THE NEXT LEGISLATIVE SESSION.
MR JACOBS POINTED OUT, HOWEVER, THAT A STRENGTHENING OF THE PRESENT INVESTIGATORY AND ENFORCEMENT MACHINERY WOULD BE REQUIRED IF THE NEW SANCTIONS WERE TO PROVE EFFECTIVE. THUS IT WAS NOT THE INTENTION TO BRING THE NEW PROVISIONS INTO FORCE UNTIL THE SECURITIES AND FUTURES COMMISSION HAD BEEN ESTABLISHED AND HAD THE NECESSARY RESOURCES TO ENSURE THAT INVESTIGATIONS AND SURVEILLANCE MARKET WERE CARRIED OUT EFFECTIVELY.
OF
THE
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