THURSDAY, JUNE 7, 1990
WRITTEN SUBMISSIONS ON FOREX DEALING INVITED
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THE SECRETARY FOR MONETARY AFFAIRS HAS SET UP AN INTERNAL WORKING GROUP TO CONSIDER WHETHER THERE IS ANY NEED TO IMPOSE CONTROLS ON LEVERAGED DEALINGS IN FOREIGN EXCHANGE BY COMPANIES WHICH FALL OUTSIDE EXISTING FIELDS OF SUPERVISION AND REGULATION, AND, IF APPROPRIATE, TO RECOMMEND COURSES OF ACTION.
THE GROUP IS ΤΟ BE CHAIRED BY THE
MONETARY AFFAIRS, MR JOSEPH YAM.
DEPUTY SECRETARY FOR
"THE MONETARY AFFAIRS BRANCH HAS IN FACT BEEN LOOKING CLOSELY AT THE SUBJECT OVER THE PAST FEW MONTHS AND HAS SOUGHT LEGAL ADVICE," THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (THURSDAY).
GROUP
"BUT BEFORE ACTUAL PROPOSALS ARE DRAWN UP, THE WORKING WOULD LIKE TO RECEIVE WRITTEN SUBMISSIONS ON THE SUBJECT FROM THOSE WHO HAVE AN INTEREST IN IT," HE SAID.
WRITTEN SUBMISSIONS SHOULD BE MADE BEFORE THE END OF JULY THIS YEAR AND SHOULD BE SENT TO THE DEPUTY SECRETARY FOR MONETARY AFFAIRS AT THE MONETARY AFFAIRS BRANCH, 24TH FLOOR, ADMIRALTY CENTRE, TOWER 2, 18 HARCOURT ROAD. INDIVIDUAL SUBMISSIONS WILL BE TREATED IN STRICT CONFIDENCE.
MR NENDICK EMPHASISED THAT ANY PROPOSALS WILL HAVE TO TAKE INTO ACCOUNT THE NEED NOT TO AFFECT LEGITIMATE TRANSACTIONS CONDUCTED BY PROFESSIONALS AND BY THOSE INVESTORS CAPABLE OF PROPERLY ASSESSING THE RISKS INVOLVED.
HE ADVISED THAT NON-PROFESSIONAL INVESTORS SHOULD ALWAYS TAKE GREAT CARE IN CONSIDERING WHETHER IT IS PRUDENT TO GIVE VIRTUALLY UNLIMITED DISCRETION TO UNREGULATED COMPANIES ΤΟ "INVEST" ON THEIR BEHALF IN LEVERAGED FOREIGN EXCHANGE CONTRACTS.
"PLUSH OFFICES ARE NOT NECESSARILY A GOOD INDICATION OF RELIABILITY. IT WILL BE USEFUL TO CONSIDER WHO PAYS FOR THE EXPENSIVE DECOR AT THE END OF THE DAY, HE ADDED.
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HE FURTHER ADVISED THAT INVESTORS SHOULD ALWAYS CONSIDER WHETHER THE SERVICES THEY REQUIRED COULD
BE PROVIDED INSTEAD BY BANK OR DEPOSIT TAKING COMPANY.
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"SUCH INSTITUTIONS ARE AUTHORISED UNDER THE BANKING ORDINANCE AND ARE SUPERVISED BY THE COMMISSIONER OF BANKING, HE ADDED.
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