WEDNESDAY, JULY 15, 1992
BILLS TO TRANSFER REGISTRAR'S FUNCTIONS INTRODUCED
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TWO BILLS TO TRANSFER CERTAIN FUNCTIONS OF THE REGISTRAR OF COMPANIES IN RELATION TO PROSPECTUSES TO THE SECURITIES AND FUTURES COMMISSION (SFC) AND THE STOCK EXCHANGE OF HONG KONG LTD (SEHK) WERE INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY),
THE TWO BILLS ARE COMPANIES { AMENDMENT) (NO. 2) BILL AND SECURITIES AND FUTURES COMMISSION (AMENDMENT) (NO. 2) BILL.
UNDER THE CURRENT SYSTEM, THE REGISTRAR, THE SFC AND SEHR HAVE VETTING RESPONSIBILITIES IN RESPECT OF PROSPECTUSES AND THERE CONSIDERABLE DUPLICATION AND OVERLAPPING OF THESE RESPONSIBILITIES.
ALL IS
IN LINE WITH THE RECOMMENDATIONS OF THE 1988 REPORT OF THE SECURITIES REVIEW COMMITTEE, THE ADMINISTRATION BELIEVED THAT THE EXISTING VETTING SYSTEM SHOULD BE RATIONALISED AND STREAMLINED SO THAT ONLY A SINGLE BODY VETS AND APPROVES THE DOCUMENTATION FOR A NEW
ISSUE.
UNDER THE PROPOSED AMENDMENTS, THE ROLE OF THE REGISTRAR OF COMPANIES WOULD BE LIMITED TO THAT OF A REGISTRATION AUTHORITY ONLY.
HE WOULD CONTINUE TO BE RESPONSIBLE UNDER THE COMPANIES ORDINANCE FOR REGISTERING PROSPECTUSES BUT WOULD CEASE ΤΟ TAKE RESPONSIBILITY FOR VETTING THEM PRIOR TO REGISTRATION.
MEANWHILE, THE STATUTORY RESPONSIBILITY FOR AUTHORISING THE REGISTRATION OF PROSPECTUSES, INCLUDING THAT OF ENSURING THAT THEY COMPLIED WITH THE COMPANIES ORDINANCE, WOULD BE VESTED IN THE SFC.
FOR THOSE PROSPECTUSES WHERE THE SECURITIES ARE NOT LISTED, THE WILL EXERCISE THE RESPONSIBILITY FOR AUTHORISING THEIR REGISTRATION.
SFC
INTRODUCING SECURITIES AND FUTURES COMMISSION { AMENDMENT) (NO. 2) BILL, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID THE OPPORTUNITY WAS ALSO BEING TAKEN TO RECTIFY THE CONSTITUTIONS OF THE SECURITIES AND FUTURES APPEALS PANĒL AND OF THE TRIBUNALS WHICH HEAR APPEALS BY EXCLUDING NON-EXECUTIVE DIRECTORS OF THE SFC FROM
MEMBERSHIP.
"THIS IS ΤΟ ENSURE THAT ANY APPEAL WILL BE HEARD BY INDEPENDENT AND IMPARTIAL TRIBUNAL, ' MR NENDICK SAID.
AN
A REVISION OF THE FINANCIAL RESOURCES RULES OF THE SFC IS ALSO PROPOSED, INTRODUCING A REQUIREMENT FOR REGISTERED PERSONS TO MAKE PERIODIC RETURNS CONCERNING THEIR CAPITAL ADEQUACY,
THE SECRETARY SAID THIS WAS TO ENABLE THE SFC ΤΟ MONITOR COMPLIANCE WITH THE CAPITAL ADEQUACY REQUIREMENTS.
DEBATES ON THE TWO BILLS WERE ADJOURNED.
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