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Powers and duties of SFC
Following is a question by the Hon Chim Pui-chung and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):
Question:
Will the Government inform this Council whether the Securities and Futures Commission has laid down any internal guidelines governing the exercising of power and execution of duties by authorised persons under the Securities and Futures Commission Ordinance; if so, what the guidelines are?
Answer:
The powers and duties of the Securities and Futures Commission contained in the Securities and Futures Commission Ordinance (Cap. 24) may, with the exception of the functions of the Commission set out in the Schedule to the Ordinance, be delegated to any directors of the Commission, to any committees established by the Commission, or to any employees of the Commission. Such delegations do not prevent the Commission itself concurrently performing the functions delegated. In practice, operational staff report to the Members of the Commission, and significant matters involving the exercise of the Commission's powers are considered by the senior management of the Commission. Moreover, all directors of the Commission are informed of, or decide on, major initiatives.
The Commission has published guidelines regulating market conduct which contain criteria under which the Commission is bound to act. For example, the Takeovers and Mergers Panel is a committee established under the Securities, and Futures Commission Ordinance and comprehensive Codes on Takeovers and Mergers and Share Repurchases have been published which set out the duties of the Panel and make provision, amongst other things, for disciplinary proceedings and decisions. Similarly, guidelines as to how the Commission will exercise its powers have been published in the Code on Unit Trusts and Mutual Funds with regard to the authorisation of mutual fund corporations and unit trusts, and in the booklet entitled The Fit and Proper Criteria which sets out the conditions to be met by persons wishing to be registered as intermediaries. A list of the relevant publications is at the Annex. As far as the more routine exercise of powers is concerned, internal Commission guidelines have been stipulated as necessary and these generally follow the published guidelines.
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