WEDNESDAY, JULY 23, 1980
COMMODITIES BILL AIRED
****
A BILL DESIGNED TO REGULATE GOLD DEALINGS BY 'FRINGE' OPERATORS, AND TO CLARIFY CERTAIN OFFENCES UNDER THE COMMODITIES TRADING ORDINANCE IN ORDER TO FACILITATE EFFECTIVE PROSECUTION WAS INTRODUCED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
IN MOVING THE COMMODITIES TRADING (AMENDMENT) BILL 1980, THE ACTING FINANCIAL_SECRETARY, THE HON DAVID JEAFFRESON SAID THAT WITH MANY DRAMATIC MOVEMENTS IN THE PRICE OF GOLD IN THE PAST YEAR, THE GOVERNMENT CANNOT IGNORE THE EMERGENCE OF SO-CALLED 'FRİNGE' GOLD OPERATORS WHOSE METHODS OF DEALING REPRESENT THE SORT OF DANGER TO THE INVESTING PUBLIC AND EVEN TO HONG KONG'S REPUTATION AS A FINANCIAL CENTRE.
HE NOTED THAT DURING THE PAST SIX MONTHS, THE OFFICE OF THE COMMISSIONER FOR COMMODITIES TRADING HAD RECEIVED MANY COMPLAINTS FROM THE PUBLIC WHO HAD BEEN CUSTOMERS AND POTENTIAL SUFFERERS OF THESE 'FRINGE OPERATORS.
*ONE CAN ARGUE THAT THOSE WHO ARE TAKEN IN BY FAST TALKING IN THE CONTEXT OF GOLD, WHICH THEY ARE NEVER EVER GOING TO SEE, DESERVE ALL THEY GET.
+PERSONALLY I HAVE SOME SYMPATHY WITH THIS ARGUMENT,
BUT I HAVE BEEN PERSUADED THAT WHAT HAS BEEN HAPPENING FALLS WITHIN THE GOVERNMENT'S POLICY OF LEGISLATING TO HELP INVESTORS
IN THE CIRCUMSTANCES WHERE THEY CANNOT BE EXPECTED TO HELP THEMSELVES.
+! AM ALSO PERSUADED THAT THIS SORT OF ACTIVITY IS INCONSISTENT WITH THE GOVERNMENT'S POLICIES ON TRADING IN COMMODITY FUTURES GENERALLY, MR JEAFFRESON ADDED.
HE SAID THAT BECAUSE OF DEFECTS IN THE COMMODITIES TRADING ORDINANCE, THE 'FRINGE GOLD DEALERS DO NOT HAVE TO REGISTER AS DEALERS IN COMMODITIES FUTURES AND SO THEY ARE NOT SUBJECT TO REGULATION.
+ IN ORDER TO BRING THEM UNDER PROPER AND EFFECTIVE CONTROL, WE MUST FIRST TIGHTEN THE PROVISIONS IN THE COMMODITIES TRADING ORDINANCE SO THAT THEY HAVE TO BE REGISTERED. +
HE SAID THAT REGISTRATION WILL NOT BE AUTOMATIC AND THE COMMISSIONER FOR COMMODITIES TRADING SHALL REFUSE TO REGISTER AN APPLICANT AS A DEALER UNLESS THE APPLICANT FULFILS A NUMBER OF CONDITIONS, INCLUDING T
*
HE MUST BE A SHAREHOLDER OF AN EXCHANGE COMPANY (EITHER THE HONG KONG COMMODITY EXCHANGE OR ANY OF THE RECOGNISED OVERSEAS EXCHANGES SPECIFIED IN THE ORDINANCE),
* HE HAS PAID A DEPOSIT OF $100 000 IN CASH.
/HOWEVER,
No comments yet.
Private notes are available after approval.