XN000022-1972-03-29 — Page 28

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Wednesday, March 29, 1972

BILL TO PROTECT DEPOSITORS AND TO PREVENT FRAUD

Draft Legislation In Advanced Stage

Draft legislation aimed at protecting depositors and to prevent fraud is in an advanced stage of preparation and should be finalised fairly

воод.

The Financial Secretary, the Hon. C.P. Haddon-Cave announced

this in the Legislative Council today when debate on the Budget was resumed.

Replying to questions raised by the Hon. H.J.C. Browne about the

implementation of the recommendations in the First Report of the Companies Law Revision Committee, he said that since the middle of January this year, Government had engaged Mr. James Selwyn, a retired Adviser in the Bank of

England, to assist in processing "this comprehensive and complicated" Report.

He was pleased to say that significant progress had been made

in the preparation of legislation on the basis of the Committee's recommendations.

On securities with particular reference to stock exchanges, the

Financial Secretary said the chapter dealing with it was rather more

complicated.

There was much to be said for the Committee's firm conviction

that Government should not get too deeply involved in attempts to regulate and supervise stock exchanges and dealings with them.

On the other hand, in the present circumstances of Hong Kong,

self-regulation of the kind and to the extent that existed in Britain

might take a little time to achieve, he added.

"The problem