XN000022-1973-12-12 — Page 3

2

Wednesday, December 12, 1973

The

Since the bill was first published for public comment, he said,

nearly 300 comments, queries and recommendations had been received.

number of suggestions for amendments alone was about 230, of which about

half were acceptable to the government and would be subject of motions

when the bill is considered in committee.

Ho stressed, however, that none of the proposed amendments

involved any retreat on a point of principle, only of application and

clarification.

One amendment he proposed to make concerned the establishment of

one common compensation fund for all stock exchanges within one month of

the particular section in the bill coming into force.

The principle of one common compensation fund has become possible

as a result of the close co-operation which has developed recently between

the exchanges and which I regard as a most welcome development," he said.

At present, the bill proposes that each stock exchange is to have

its own compensation fund which is to be administered by a committee of

each exchange. This fund would consist of two parts

consisting of an initial $50,000 to be deposited by the stock exchange on

behalf of each member and a subsequent deposit to be determined by the

Securities Commission six months later either in cash or securities or in the

form of a bank guarantee; and a primary account that would be built up by

--

a reserve account

a monthly payment starting with the enactment of the bill.

Under the proposed amendment to be made by the Financial Secretary,

each stock oxchange would deposit with the Securities Commission an initial sum equivalent to $50,000 per member which would be divided equally into

a cash deposit of $25,000 and an irrevocable bank guarantee in the sum of $25,000.

/"With