3
TUESDAY, OCTOBER 4, 1988
"IT IS EXTREMELY UNLIKELY TO SUCCEED IN THIS AND, EVEN IF
BE BOUND TO DID, IT WOULD STILL
DISPLEASE SOME ELEMENTS IN COMMUNITY," HE SAID.
IT
THE
'IF IT ENDED UP PLEASING EVEN HALF THE PEOPLE HALF THE TIME WOULD BE A MIRACLE," HE ADDED.
IT
OWEN OF
EXTENT OF ON THE CONCERN EXPRESSED BY SOME QUARTERS ABOUT THE
SFC SHOULD HAVE,
MR THE NEW POWERS WHICH IT WAS PROPOSED THE SAID THAT IN ALL BUT ONE OF THE AREAS (THE EXCEPTION BEING SOME
THE THE POWERS TO GIVE DIRECTIVES TO THE EXCHANGES)
POWERS PROPOSED FOR THE SFC WERE SIMILAR TO AND NO MORE AUTHORITARIAN THAN THOSE OF REGULATORS IN MOST OF THE WORLD'S MAJOR
WITH DEMOCRACIES
WELL-DEVELOPED FINANCIAL MARKETS.
PROPOSED HE SAID THAT CHECKS AGAINST MISUSE OF THE POWERS WERE ALSO EXTENSIVE.
REGULATORY
MR OWEN SAID ONE MAIN TASK HE AND THE SPECIAL UNIT OF THE
BEEN WORKING MONETARY AFFAIRS BRANCH HAD
ON DURING THE LAST TWO MONTHS WAS THE DRAFT BILL WHICH WOULD BRING THE SFC INTO BEING.
HE SAID THE MAIN PROVISIONS OF THE WITH THE FOLLOWING MATTERS:
PRESENT DRAFT BILL
DEALT
THE ESTABLISHMENT AND CONSTITUTION OF THE SFC.
RESERVE THE SFC WILL HAVE NEW
POWERS, IN LINE WITH THE REVIEW SECURITIES
COMMITTEE'S
ΤΟ RECOMMENDATIONS,
GIVE DIRECTIVES TO THE EXCHANGES OR CLEARING HOUSES. THESE POWERS ARE DESIGNED TO ENABLE THE SFC, WITHOUT RESORTING TO THE "NUCLEAR DETERRENT" OF CLOSING AN EXCHANGE, TO ENSURE THAT CORRECTIVE ACTION IS TAKEN BY
OR THE COUNCIL MANAGEMENT OF THAT EXCHANGE WHEN THE CONVINCED SUCH ACTION IS NECESSARY IN THE
THE
COMMISSION
19
CONSULT
PUBLIC
THE
INTEREST. FINANCIAL
IS COMMISSION
REQUIRED TO SECRETARY BEFORE USING THESE POWERS.
NEW LICENSING WITHOUT INTRODUCING A COMPREHENSIVE THE BILL MAKES CERTAIN ADJUSTMENTS TO THE
DESIGNED TO ENABLE THE REGISTRATION PROCEDURES, UNDERTAKE A MORE THOROUGH REVIEW OF APPLICATIONS REGISTRATIONS OR RENEWALS, AND TO REQUIRE THE SATISFY IT THAT HE IS A "FIT AND PROPER" PERSON THE RELEVANT BUSINESS.
*
THE
ALSO EMPOWERS
י
SYSTEM, PRESENT
SFC то
FOR NEW APPLICANT ΤΟ TO CONDUCT
THE
SFC
ΤΟ
MAKE PERSONS)
RULES то
DRAFT BILL REQUIRING FINANCIAL INTERMEDIARIES (REGISTERED MAINTAIN PRESCRIBED LEVELS OF CAPITAL AND LIQUIDITY.
THE BILL