XN000022-1983-03-09 — Page 3

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WEDNESDAY, MARCH 9, 1983

I SEEK CLARIFICATION OF THIS POINT BECAUSE OF THE WIDESPREAD PUBLIC VIEWS OF THE DEFINITION OF ADVERTISING, HE SAID.

MR CHEUNG FELT THE GOVERNMENT SHOULD EXERCISE MORE STRINGENT CONTROL OVER THE OPERATIONS OF COMPANIES, BY SPECIFYING MORE EXPLICIT ACCOUNTING RESPONSIBILITIES, AND SHOULD SET RULES AND REGULATIONS FOR THEIR OPERATION.

THANKING THE UNOFFICIALS FOR THE IR SUPPORT, THE SECRETARY FOR ECONOMIC SERVICES, THE HON P. JACOBS SAID A MORE COMPREHENSIVE SYSTEM OF CONTROL ALONG THE LINES SUGGESTED BY MR CHEUNG WOULD BE COSTLY TO ADMINISTER AND COULD PLACE A CONSIDERABLE BURDEN ON LEGITIMATE TRADERS.

BUT IF THERE WAS CLEAR EVIDENCE IN FUTURE THAT THE GOVERNMENT'S PROPOSALS WERE INADEQUATE, HE WOULD RECONSIDER THE APPROACH TAKEN.

REFERRING TO THE QUESTION OF ADVERTISING, HE SAID +ADVERTISEMENT+ WAS DEFINED IN THE PRINCIPAL ORDINANCE AS INCLUDING EVERY FORM OF ADVERTISING, WHETHER NOTIFIED OR PUBLISHED, IN A NEWSPAPER, MAGAZINE, JOURNAL OR OTHER PERIODICAL.

*THE DEFINITION ALSO INCLUDES DISPLAYS OF POSTERS OR NOTICES, AND THE DISTRIBUTION OF CIRCULARS OR BROCHURES AND SO ON.

+ IT EVEN INCLUDES EXHIBITIONS OF PHOTOGRAPHS OR CINEMATO-GRAPHIC FILMS. SO THE DEFINITION IS WIDE, AND I BELIEVE THAT IN PRACTICE IT SHOULD CATCH MOST SCHEMES THAT‍ ARE LIKELY TO BE PUT TOGETHER EVEN THOUGH SOME OF THE EXAMPLES GIVEN BY MR CHEUNG MIGHT FALL OUTSIDE ITS AMBIT, HE SAID.

THE COMMISSIONER FOR SECURITIES' OFFICE, HE SAID, HAD THE RELEVANT AND QUALIFIED EXPERTISE TO VET ADVERTISEMENTS. AND, IN FACT, THE OFFICE HAD BEEN EXAMINING ADVERTISEMENTS UNDER THE EXISTING PROVISIONS OF THE PRINCIPAL ORDINANCE EVEN SINCE IT WAS FIRST ENACTED IN 1974. THE COMMISSIONER'S STAFF ALSO CAREFULLY SCRUTINISED ADVERTISEMENTS FOR UNIT TRUSTS AND MUTUAL FUNDS.

+80 THE EXPERIENCE AND ADMINISTRATIVE MACHINERY IS THERE; AND THIS IS ONE OF THE REASONS WHY WE ADOPTED THIS PARTICULAR ROUTE FOR CONTROLLING PAPER GOLD SCHEMES,+ HE SAID,

WITH REFERENCE TO THE CALL BY MR BROWN AND MR CHEUNG FOR A REVIEW OF THE WHOLE SUBJECT OF PROTECTION OF INVESTORS, HE SAID THIS SUBJECT SHOULD BE CONSIDERED BY THE STANDING COMMITTEE ON COMPANY LAW REFORM.

+AS TO THE COMMODITIES TRADING ORDINANCE, MEMBERS WILL RECOLLECT THAT IN ANSWER TO MR PETER WONG'S QUESTION IN THIS COUNCIL ON DECEMBER 22 LAST YEAR, I SAID THAT A WORKING PARTY CHAIRED BY THE COMMISSIONER FOR COMMODITIES TRADING HAD BEEN APPOINTED TO REVIEW THE COMMODITIES TRADING ORDINANCE GENERALLY.

+THE REVIEW IS PROGRESSING AND HAVE TAKEN DUE NOTE OF MR BROWN'S CALL FOR URGENCY, HE SAID.

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