-
7
FRIDAY, JUNE 23, 1989
"THE AMENDMENT BILL PROPOSES THAT IN ADDITION TO THE EXEMPTIONS ALREADY SPECIFIED IN SECTION 4(2) OF THE ORDINANCE, ADVERTISEMENTS RELATING TO CD AND CP ISSUES SHOULD BE AUTOMATICALLY EXEMPT FROM THE AUTHORISATION PROCEDURES SUBJECT TO COMPLYING WITH A REPORTING REQUIREMENT AND TO MINIMUM DENOMINATION AND CAPITALISATION TESTS AS APPROPRIATE.
THAT DO NOT
QUALIFY FOR SFC IN T118
"ADVERTISEMENTS CONCERNING ISSUES EXEMPTION WILL NEED TO OBTAIN AUTHORISATION FROM THE NORMAL WAY."
ELABORATING ON THE PROPOSALS IN THE BILL, THE SPOKESMAN SAID ADVERTISEMENTS IN RESPECT OF THREE MAIN CLASSES OF CAPITAL MARKET ISSUE WOULD BE EXEMPT FROM AUTHORISATION.
"FIRST, CD ISSUES BY BANKS AND DEPOSIT-TAKING COMPANIES LICENSED OR REGISTERED UNDER THE BANKING ORDINANCE WILL BE WHOLLY EXEMPT AS AUTHORISED INSTITUTIONS ARE SUBJECT TO SUPERVISION BY THE COMMISSIONER OF BANKING.
"SECONDLY, CD ISSUES BY FOREIGN BANKS NOT LICENSED IN HONG KONG AND SPECIFIED MULTILATERAL AGENCIES (E.G. THE WORLD BANK WILL BE EXEMPT SUBJECT TO A MINIMUM DENOMINATION OR HK$1 MILLION OR EQUIVALENT AND, IN THE CASE OF FOREIGN BANKS, ADEQUATE SUPERVISION IN THE PLACE OF INCORPORATION OR PRINCIPAL PLACE OF BUSINESS.
"THIRDLY, CP ISSUES BY SPECIFIED BODIES (INCLUDING LISTED COMPANIES, GOVERNMENT AND PUBLIC SECTOR BODIES, AUTHORISED INSTITUTIONS AND MULTILATERAL AGENCIES) WILL ALSO BE EXEMPT SUBJECT TO A MINIMUM DENOMINATION OF HK$1 MILLION OR EQUIVALENT AND, IN THE CASE OF A CORPORATION WITH A SHARE CAPITAL, THE ISSUER OR PARENT COMPANY GUARANTEEING THE ISSUE HAVING A MINIMUM PAID-UP SHARE CAPITAL OF HK$75 MILLION," HE ADDED.
"THE MINIMUM DENOMINATION REQUIREMENT IS INTENDED TO KEEP SUCH ISSUES OUT OF THE HANDS OF THE ORDINARY INVESTOR. HOWEVER, WHERE A SMALLER DENOMINATION IS SOUGHT, THE ISSUER CAN ALWAYS APPROACH THE SFC FOR EXPRESS AUTHORISATION, THE SPOKESMAN EXPLAINED.
"
HE SAID THAT ALL EXEMPT ISSUES WOULD NEED TO BE REPORTED то THE SFC WITHIN 10 WORKING DAYS OF THE DATE OF ISSUE TO ENABLE IT TO MONITOR THE DEVELOPMENT OF THE MARKET.
"FAILURE TO REPORT WOULD BE AN OFFENCE," HE STRESSED.
THE SPOKESMAN SAID THAT THE OPPORTUNITY WAS ALSO BEING TAKEN
TO REMOVE AN ANOMALY IN THE ORDINANCE.
"IT IS PROPOSED TO MAKE IT CLEAR THAT THE EXEMPTION AT PRESENT AVAILABLE TO PROFESSIONAL PERSONS ΤΟ MARKET 'SECURITIES' DOES NOT EXTEND TO ANY UNITS OF UNIT TRUSTS OR SHARES IN MUTUAL FUNDS THAT HAVE NOT BEEN AUTHORISED BY THE SFC UNDER THE SECURITIES ORDINANCE.
THE PROTECTION OF INVESTORS I AMENDMENT) INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JULY 5.
BILL WILL
BE
MEMBERS OF THE PUBLIC WHO WISH TO COMMENT ON THE PROVISIONS THE BILL SHOULD WRITE ΤΟ THE SECRETARY FOR MONETARY AFFAIRS ADMIRALTY CENTRE, TOWER II, 24TH FLOOR, OR TO ROAD, CENTRAL.
OF
AT
OMELCO AT મ JACKSON
0
/8