(b)
(c)
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whether the scope of the proposed inclusion of the Exchange will cover the regulation of the staff, council members, members of various standing committees as well as individual and corporate members of the Exchange; and
of the progress of the discussion between the ICAC and the Exchange on the proposal?
Answer:
(a)
In 1994, the Stock Exchange of Hong Kong requested the Corruption Prevention Department of the ICAC to study the work of its Listing Division, Finance & Operations Services Division and Compliance Division. The studies were completed in late 1995. The reports of the studies confirmed that there were no major problems in the SEHK procedures. In endorsing the reports, however, the Corruption Prevention Advisory Committee noted the Exchange's statutory monopoly of securities trading in Hong Kong and its crucial role for the investing public. The Committee therefore recommended that the Exchange be included in the Schedule of public bodies to the Prevention of Bribery Ordinance (the Ordinance) so that the Corruption Prevention Department of the ICAC could initiate studies on all other procedures of the Exchange with a view to giving corruption prevention advice where appropriate, notwithstanding that the ICAC has always received the fullest co-operation in its systems audit work for the Exchange in the past.
(b)&(c)The Exchange has sought clarification from the ICAC on whether the statutory definition of "public servants" in Section 2 of the Ordinance would include staff and all the various categories of membership of the Exchange if the Exchange were listed as a public body under the Ordinance. In particular, legal advice is being sought as to whether a broker member of the Exchange who is not an agent of the Exchange in the ordinary course of business would be regarded as a public servant under the Ordinance. We understand that the Exchange will take a decision on ICAC's proposal in the light of further clarification and legal advice referred to above.
End