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WEDNESDAY, NOVEMBER 22, 1989
THE OF
SIR PIERS SAID
BUSINESS EXCHANGE
UNDER THE PROPOSED NEW ARRANGEMENTS, COMMISSIONER OF BANKING'S OVERSIGHT OF FOREIGN INDIVIDUAL AUTHORISED INSTITUTIONS WOULD INVOLVE:
ASSESSING THE ADEQUACY OF MANAGEMENT SYSTEMS AND LIMITING FOREIGN EXCHANGE EXPOSURES:
FOR
MONITORING
-
LIMIT SETTING A GUIDELINE EXPOSURES:
FOR OVERNIGHT FOREIGN
CURRENCY
ANALYSING REGULAR RETURNS ON FOREIGN EXCHANGE ACTIVITIES POSITIONS; AND
AND
REGULAR CONSULTATIONS WITH MANAGEMENT OF AUTHORISED INSTITUTIONS TO REVIEW OPERATIONS.
SIR PIERS SAID THE COMMISSIONER'S OFFICE BANKING AND DEPOSIT-TAKING INDUSTRY BODIES ON THE NEW ARRANGEMENTS.
WAS
THE
CONSULTING WITH IMPLEMENTATION OF
THE FINANCIAL SECRETARY
TURNING TO INVESTOR EDUCATION, EXPLAINED THAT THE POSITION OF INVESTORS. WHO MIGHT NOT BE FULLY AWARE THE RISKS ARISING FROM VOLATILITY IN THE FOREIGN EXCHANGE MARKETS. WAS OF SOME CONCERN.
OF
"IT IS THE GOVERNMENT'S INTENTION TO CREATE A GREATER PUBLIC AWARENESS OF THESE RISKS THROUGH INVESTOR EDUCATION.
"THIS IS LIKELY ΤΟ BE MORE EFFECTIVE. AND CHEAPER, THAN INTRODUCING LEGISLATIVE CONTROLS. HE SAID.
F
WAS, HOWEVER, LOOKING AT
SIR PIERS ALSO SAID THE GOVERNMENT THE OPERATION OF FRINGE OPERATORS WHO OFFERED LEVERAGED FOREIGN EXCHANGE.
CONTRACTS
IN
HE EXPLAINED THAT SUCH OPERATORS. WHOSE NUMBERS HAD INCREASED
RECENT RAPIDLY OVER
YEARS. CURRENTLY FELL OUTSIDE THE FIELD OF SUPERVISION OF EITHER THE COMMISSIONER
BANKING'S OFFICE SECURITIES AND FUTURES COMMISSTON.
OF
OR
THE
"WE ARE EXAMINING THEIR LEGAL, POSITION AND POSSIBLE PROBLEMS ARISING FROM THEIR OPERATIONS BEFORE COMING TO A VIEW AS
WHETHER. AND IF SO HOW BEST. THEIR ACTIVITIES SHOULD BE SUBJECT TO CONTROLS. SIR PIERS SAID.
TO
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HE ADDED THAT THE GOVERNMENT WOULD CONDUCT APPROPRIATE CONSULTATIONS IN THE COURSE OF FORMULATING ANY NEW REGULATIONS WHICH MIGHT BE NECESSARY.
THE FINANCIAL SECRETARY EMPHASISED THAT THE COMMISSIONER OF BANKING TOOK A CLOSE INTEREST IN THE STANDARDS OF PRUDENCE OBSERVED BY AUTHORISED INSTITUTIONS.
/HE SAID