10
THURSDAY, MARCH 23, 1989
EXCO ENDORSES NEW LEVY ARRANGEMENTS
PRINCIPLE
THE EXECUTIVE COUNCIL HAS ENDORSED IN INTRODUCTION OF NEW STATUTORY LEVIES ON TRANSACTIONS ON THE STOCK FUTURES EXCHANGES.
THE
AND
ANNOUNCING THIS TODAY (THURSDAY), A GOVERNMENT SPOKESMAN SAID AND THAT WITH EFFECT FROM THE ESTABLISHMENT DAY OF THE NEW SECURITIES
(SFC), FUTURES COMMISSION
THE NEW LEVY FOR STOCK EXCHANGE TRANSACTIONS WILL BE 0.025 PER CENT PER TRANSACTION BUYER AND SELLER.
PAYABLE
BY BOTH
"THIS REPLACES THE EXISTING STOCK EXCHANGE LEVY EQUIVALENT AMOUNT," HE SAID.
OF AN
THE EXCHANGE AND
"UNDER THE NEW ARRANGEMENTS, THE STOCK BFC WILL EACH RECEIVE RALF (THAT IS 0.0125 PER CENT) OF THE AT THE INITIAL STAGE.
TO BE
NEW NEW LEVY
THE SPOKESMAN SAID THE AMOUNT OF THE LEVY
RECEIVED BY THE SFC WOULD BE SUBJECT TO REGULAR REVIEW BY THE EXECUTIVE COUNCIL WHILE THE AMOUNT TO BE RECEIVED BY THE STOCK EXCHANGE WOULD BR SUBJECT TO REVIEW BY THE GOVERNMENT WITHIN FOUR YEARS.
OF
THE NEW ARRANGEMENTS WERE THE RESULTS OF THE DISCUSSION BETWEEN THE FINANCIAL SECRETARY, MR PIERS JACOBS, AND THE CHAIRMAN
STOCK EXCHANGE OF THE COUNCIL OF THE
HONG
SIR KONG,
Q.W. LEE. FOLLOWING THE ADMINISTRATION'S ACCEPTANCE OF THE SECURITIES COMMISSION'S VIEW THAT THE EXISTING
CENT
EXCHANGE STOCK TRANSACTION LEVY SHOULD BE ABOLISHED.
0.025
PER
THE EXECUTIVE COUNCIL HAS ALSO ENDORSED THE ADMINISTRATION'S REQUIRED TO PAY DECISION THAT THE STOCK EXCHANGE WOULD NO LONGER BE THE GOVERNMENT AN ANNUAL FEE AND THAT THIS STATUTORY REQUIREMENT SHOULD BE REPEALED.
STOCK
SECTION 28 OF THE THE SPOKESMAN EXPLAINED THAT UNDER
то PAY ΤΟ EXCHANGES UNIFICATION ORDINANCE, THE EXCHANGE COMPANY HAD
A STOCK THE GOVERNMENT, IN RESPECT OF THE EXCLUSIVE RIGHT TO OPERATE
IF ANY, AS EXCHANGE, SUCH ANNUAL FEE,
MAY BE DETERMINED BY THE GOVERNOR IN COUNCIL.
"THE ANNUAL FEE IS COST-RELATED AND IS INTENDED TO RECOVER
COMMISSIONER FOR SECURITIES COSTS INCURRED BY THE OFFICE OF THE REGULATING THE ACTIVITIES OF THE STOCK EXCHANGE.
THE
IN
"IN VIEW OF THE IMPENDING ESTABLISHMENT OF THE SFC, OF SUPERVISING THE ACTIVITIES OF THE STOCK EXCHANGE WILL BE THE SFC, HE SAID.
UNDER THESE CIRCUMSTANCES, IT IS THEREFORE SECTION 28 OF THE STOCK EXCHANGES UNIFICATION ORDINANCE HE ADDED.
THE COSTS BORNE BY
DECIDED
THAT
BE REPEALED,
COUNCIL ALSO AGREED
IN
FOR FUTURES CONTRACTS, THE EXECUTIVE PRINCIPLE THAT A COMPARABLE LEVY WOULD BE CHARGED.
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