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Codes of conduct of SFC and Stock Exchange Hong Kong Limited
Following is a question by the Hon Chim Pui-chung and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):
Question:
Does the Government know:
(a)
(b)
(c)
of the respective dates of the introduction of rules and codes of conduct by the Securities and Futures Commission and the Stock Exchange of Hong Kong Limited, which spell out clearly the principles and practices which registered stock brokers or their staff should follow when dealing in transactions either for their own accounts or for their clients;
whether, prior to the introduction of the above rules and codes of conduct, it was beyond the power of the authorities concerned to intervene in the way in which registered stock brokers or their staff handled their own transactions or those made on behalf of their clients; and
whether the Financial Secretary or the Secretary for Financial Services has the authority to ensure there is check and balance in the application of the existing rules and codes of conduct; if not, why not?
Answer:
(a)
The Securities and Futures Commission (SFC) issued a Code of Conduct for persons registered with the Securities and Futures Commission in February 1994.
In addition, in 1986, the Stock Exchange of Hong Kong Limited (SEHK) promulgated the Exchange Rules and Regulations. In November 1993, the SEHK further issued a Code of Conduct Regulations which specifically expanded on the conduct requirements of the Exchange Rules and Regulations in compliance with the principles set out by the International Organisation of Securities Commissions.
Together, they set out the principles and practices which registered stock brokers and their staff should follow when dealing in transactions either for their own accounts or for their clients.