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THURSDAY, JANUARI 12, 1989
"THE BILL WILL BE GAZETTED TOMORROW (FRIDAY) AND WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JANUARY 18, HE SAID.
EMPHASISING THE IMPORTANCE OF CONTINUING CONSULTATION, MR JACOBS SAID THE GOVERNMENT WOULD WELCOME ANY FURTHER COMMENTS
THE BILL DURING THE LEGISLATIVE PROCESS.
ON
THE MAIN PROPOSALS PUT FORWARD IN THE BILL ARE -
ESTABLISHMENT OF THE SFC
AND
THE BILL PROVIDES FOR THE ESTABLISHMENT OF THE SFC ITS ADVISORY COMMITTEE. IT VESTS IN THE SFC THE FUNCTIONS, DUTIES AND POWERS OF THE EXISTING REGULATORY BODIES, THAT IS THE SECURITIES COMMISSION, THE COMMODITIES TRADING COMMISSION AND THE OFFICE OF THE COMMISSIONER FOR SECURITIES AND COMMODITIES TRADING.
ALTHOUGH THE SFC WILL BE OUTSIDE THE CIVIL SERVICE, IT WILL BE PART OF THE WIDER GOVERNMENT MACHINERY AND ACCOUNTABLE TO THE GOVERNMENT AND TO THE LEGISLATIVE COUNCIL.
THE GOVERNOR WILL APPOINT AND HAVE POWER TO DISMISS THE CHAIRMAN AND DIRECTORS OF THE SFC. HE WILL BE ABLE TO GIVE POLICY DIRECTIONS TO THE SFC AND THE FINANCIAL SECRETARY WILL HAVE POWER TO ASK FOR INFORMATION FROM THE SFC RELATING TO ITS ACTIVITIES.
THE SFC WILL BE REQUIRED TO PRESENT AN ANNUAL REPORT AND AUDITED STATEMENT OF ACCOUNTS, WHICH WILL BE LAID BEFORE THE LEGISLATIVE COUNCIL. ITS ANNUAL BUDGET MUST BE APPROVED BY THE GOVERNOR AND THE DIRECTOR OF AUDIT WILL BE ABLE TO EXAMINE ITS BOOKS.
THE SFC BOARD WILL HAVE FIVE EXECUTIVE DIRECTORS, INCLUDING THE CHAIRMAN AND FIVE NON-EXECUTIVE DIRECTORS. THE NON-EXECUTIVE DIRECTORS WILL PROVIDE INDEPENDENT ADVICE ON THE SFC'S MANAGEMENT AND WILL BE ACTIVELY INVOLVED IN POLICY FORMATION.
ESTABLISHMENT OF AN APPELLATE BODY
THE BILL PROVIDES FOR THE ESTABLISHMENT OF A SECURITIES AND FUTURES BOARD OF APPEAL TO HEAR APPEALS AGAINST DECISIONS BY THE SFC IN RELATION то APPLICATIONS FOR, OR SUSPENSION OR REVOCATION OF REGISTRATION, AND AGAINST THE EXERCISE OF THE INTERVENTION POWERS.
'THE BOARD