. و
WEDNESDAY, JULY 12, 1989
TRIBUNAL
PERSON SUCH
A TO ORDER FIFTHLY, THE BILL EMPOWERED THE FOUND TO BE INVOLVED IN INSIDER DEALING TO PAY TO THE GOVERNMENT SUMS AS IT SAW FIT TOWARDS THE EXPENSES OF THE INQUIRY AND ANY RELATED INVESTIGATION CARRIED OUT BY THE TRIBUNAL.
"WE
CONTRIBUTE
IT CONSIDER TOWARDS
REASONABLE TO REQUIRE
INSIDER DEALERS
ΤΟ
THE THE TRIBUNAL'S EXPENSES,
ACTING FINANCIAL
SECRETARY SAID.
ON THE
NENDICK
FUTURES
MR
AND HAD
CONTRACTS, QUESTION OF INSIDER DEALING IN FUTURES
SECURITIES SAID DURING THE SECOND READING DEBATE ON THE COMMISSION BILL IN APRIL, THE FINANCIAL SECRETARY
WHETHER UNDERTAKEN TO CONSIDER
THE SECURITIES AND FUTURES COMMISSION'S POWERS OF INVESTIGATION SHOULD
COVER
CONTRACTS, INSIDER DEALING IN FUTURES
ΤΟ THE
LEGISLATIVE COUNCIL.
BE
то EXTENDED
AND
то
REPORT BACK
"WE HAVE CONSIDERED WHETHER THE BILL BEFORE THIS COUNCIL SHOULD ALSO BRING FUTURES CONTRACTS WITHIN THE SCOPE OF INSIDER DEALING.
NUMBER OF TECHNICAL ISSUES WHICH THIS QUESTION RAISES A
REQUIRE VERY CAREFUL EXAMINATION," HE SAID.
"FIRST OF ALL, THE DEFINITION OF 'RELEVANT INFORMATION' FOR THE PURPOSE OF INSIDER DEALING REQUIRES SOME ATTENTION. SHOULD THIS RELATE AN TO UNPUBLISHED PRICE-SENSITIVE INFORMATION ABOUT A CORPORATION, INDUSTRIAL SECTOR, THE POLITICAL SITUATION OR THE ECONOMY AS A WHOLE?
"SECONDLY, WE HAVE THE BURDEN OF PROOF. WHAT EVIDENCE REQUIRED TO SHOW A SUFFICIENT CAUSAL RELATIONSHIP BETWEEN INFORMATION AND A MATERIAL CHANGE OR LIKELY MATERIAL CHANGE PRICE OF A FUTURES CONTRACT?"
IS
PARTICULAR
IN
THE
"THIRDLY, WE HAVE THE QUESTION OF SCOPE, SHOULD IT EMBRACE
FUTURES OR JUST STOCK INDEX FUTURES CONTRACTS?" THE FINANCIAL FINANCIAL SECRETARY ASKED.
ALL
ACTING
THE
"THESE ARE NOT EASY QUESTIONS TO ANSWER. AN INDICATION OF DIFFICULTY INVOLVED 18 THAT FUTURES CONTRACTS ARE NOT CAUGHT BY THE EQUIVALENT U.S. LEGISLATION AND ONLY CAUGHT IN A VERY LIMITED WAY, AT ALL, BY THE UK LEGISLATION AS THE RELEVANT PROVISIONS HAVE YET BE TESTED BEFORE THE COURTS, MR NENDICK SAID.
REGARD
IF
TO
TO
CONCLUDED
THE
"HAVING
NEED TO THE COMPLEXITIES INVOLVED AND THE INTRODUCE TOUGHER PENALTIES AS QUICKLY AS POSSIBLE, WE HAVE THAT THE QUESTION OF FUTURES CONTRACTS SHOULD NOT BE ADDRESSED IN PRESENT BILL," HE ADDED.
THE
WITH
EXPERIENCE
MR NENDICK SAID THE QUESTION WOULD BE CAREFULLY EXAMINED SECURITIES AND FUTURES COMMISSION IN THE LIGHT OF THE OF THE PROPOSED NEW LEGISLATION IN OPERATION AND LEGISLATIVE PROPOSALS WOULD BE PREPARED IF AND WHEN THESE WERE CONSIDERED APPROPRIATE.
DEBATE ON THE BILL WAS ADJOURNED.
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