XN000022-1973-01-03 — Page 4

Wednesday, January 3, 1973

"In addition, the Council will deal with a range of problems arising

from the implementation of other bills which are now being drafted dealing with

takeover bids and the regulation of mutual funds and unit trusts which are on

sale within Hong Kong."

Mr. Haddon-Cave went on to say that the preparation of the Securities

Bill was well in hand but "it is unlikely that the Bill can be finalised before

the end of March at the earliest.

"However, in present conditions, it would not be prudent to wait until

the enactment of the Bill before taking action to provide some more authoritative

guidance and help to those responsible for managing the stock exchanges and other

institutions in the field of trading in securities."

Statutory

The Government had thus decided to anticipate the enactment of legis-

lation providing for a statutory Securities Council and Commissioner of Securities by establishing now, on an administrative basis, the Securities Advisory Council

and creating the Commissioner's post.

As neither the Advisory Council nor the Commissioner will have any

statutory powers until and unless the Securities Bill is enacted, for mal terms

of references are not proposed.

But even so, the Financial Secretary said he was convinced that it

would give the Adivsory Council considerable influences from the outset since

the introduction of statutory powers was envisaged.

/"And I

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