WEDNESDAY, APRIL 12, 1989
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"ABOVE ALL, YOU MUST BE RESPONSIVE TO THE NEEDS OF THE INDUSTRY AND THE PUBLIC.
"THE COMMISSION MUST REMEMBER, TOO, THAT HONG KONG WANTS AND NEEDS SELF-REGULATION TO BE THE PRIMARY AND PRINCIPAL METHOD OF REGULATION, MR LI STRESSED.
IN MR LI'S VIEW, WHAT BROUGHT ABOUT THE DISASTER OF OCTOBER, 1987 WAS THE IGNORANCE OF KEY PERSONNEL IN THE GOVERNMENT ABOUT HOW THE FINANCIAL MARKETS WORKED. THEREFORE, ANOTHER OF THE RESPONSIBILITIES OF THE NEW COMMISSION MUST BE TO KEEP THE GOVERNMENT INFORMED AND IN CHECK.
WAS A
OF
AT
MR LI DISAGREED THAT THE LARGE BUDGET OF THE COMMISSION HEAVY PRICE TO PAY то EDUCATE A COMPARATIVELY SMALL NUMBER OFFICIALS AS, TO HIS KNOWLEDGE, THE ACQUIESCENCE OF THE GOVERNMENT THE CLOSURE OF WHAT WAS THOUGHT TO BE A FREE MARKET RAISED ALMOST MANY QUESTIONS IN THE INTERNATIONAL FINANCIAL COMMUNITY ABOUT HONG KONG'S FINANCIAL FUTURE AS CONCERN ABOUT 1997.
AS
HOWEVER, IN VIEW OF THE LARGE BUDGET, IT WAS IMPERATIVE TO HAVE INTELLIGENT, INDEPENDENTLY-MINDED NON-EXECUTIVE DIRECTORS ON THE COMMISSION TO REIN THE BUREAUCRATIC ZEAL AND EMPIRE-BUILDING OF BUREAUCRATS, MR LI SAID.
THE APPOINTMENT OF NON-EXECUTIVE DIRECTORS WOULD AL30 HELP PREVENT THE COMMISSION FROM MAKING MISTAKES. WHICH COULD AFFECT SIGNIFICANTLY HONG KONG'S REPUTATION AS A FINANCIAL MARKET.
MUST
BE
NEVERTHELESS, THESE NON-EXECUTIVE DIRECTORS INDIVIDUALS WHO NOT ONLY HAD THE NECESSARY EXPERTISE AND PERSONAL INTEGRITY, BUT WHO WERE ALSO NOT AFRAID TO DISAGREE WITH THE GOVERNMENT ITSELF, WHEN THEY BELIEVED THE GOVERNMENT WAS WRONG, HE STRESSED.
AND
EQUALLY IMPORTANT, THE NON-EXECUTIVE DIRECTORS MUST BE MUST BE SEEN TO BE · TOTALLY INDEPENDENT OF ANY SPECIAL POINT OF VIEW, IF THEY WERE TO GAIN CREDIBILITY WITH THE PUBLIC, THE INDUSTRY, THE GOVERNMENT AND OFFICIALS IN THE COMMISSION AND TO FUNCTION EFFECTIVELY, MR LI WENT ON.
MR LI FELT THAT THE SECURITIES AND FUTURES COMMISSION BILL WAS IMPORTANT TO HK'S FUTURE IN TWO WAYS. IN ONE WAY, IT WAS AN ATTEMPT TO PUT RIGHT WEAKNESSES IN THE SUPERVISION OF OUR FINANCIAL MARKETS WEAKNESSES WHICH CONTRIBUTED DIRECTLY AND SIGNIFICANTLY то THE DISASTER OF OCTOBER, 1987.
IN ANOTHER, THE LEGISLATION SHOWED THAT THE GOVERNMENT AND THE LEGCO AD HOC GROUP COULD WORK CLOSELY TOGETHER IN SCRUTINISING A BILL WHICH ORIGINALLY GENERATED MUCH CRITICISM AND AMEND IT ACCOUNT THE VIEWS EXPRESSED BY THE FINANCIAL INDUSTRY.
TAKING
INTO
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