XN000022-1985-07-24 — Page 6

WEDNES. 17 JULY 24, 1985

BILL TO SAFEGUARD INVESTORS' INTERESTS

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TO SAFEGUARD FURTHER THE INTERESTS OF INVESTORS, THE SECURITIES (AMENDMENT) BILL 1985 PROPOSED TO STRENGTHEN THE POWERS OF THE COMMISSIONER FOR SECURITIES IN MONITORING DEALERS' FINANCIAL VIABILITY.

STATING THIS TODAY (WEDNESDAY) WHEN MOVING THE BILL'S SECOND READING, THE SECRETARY FOR ECONOMIC SERVICES, THE HON GERRY HIGGINSON, SAID IT WAS ONE OF THE FOUR MAIN OBJECTIVES OF THE BILL.

+ON BECOMING AWARE OF THEIR INABILITY TO COMPLY WITH THE SPECIFIED FINANCIAL REQUIREMENTS, DEALERS WILL BE REQUIRED TO CEASE TRADING AND TO INFORM THE COMMISSIONER FOR SECURITIES, WHO MAY THEN REVOKE OR SUSPEND REGISTRATION,

+AUDITORS WHO, DURING THE PERFORMANCE OF THEIR DUTIES, DISCOVER THAT A DEALER HAS FAILED TO COMPLY WITH THE REQUIREMENTS, WILL HAVE TO SO NOTIFY THE COMMISSJONER.

+THE COMMISSIONER IS FURTHER EMPOWERED TO EXAMINE AT WILL THE ACCOUNTS AND BOOKS OF ANY DEALERS, HE SAID,

MR HIGGINSON POINTED OUT THAT THE BILL ALSO PROVIDED ADDITIONAL GROUNDS FOR THE COMMISSIONER TO REFUSE, REVOKE OR SUSPEND THE REGISTRATION OR RENEWAL OF REGISTRATION OF A DEALER OR AN INVESTMENT ADVISER AND TO INQUIRE INTO ALLEGATIONS OF MISCONDUCT.

+GIVEN THE DECISION TO PERMIT PARTNERSHIPS TO TRADE IN THE UNIFIED EXCHANGE, PROVISION FOR THE REGISTRATION OF PARTNERSHIPS,

IS AS DEALING PARTNERSHIPS UNDER THE SECURITIES ORDINANCE, REQUIRED, HE SAID, MOVING ON TO ANOTHER BASIC OBJECTIVE OF THE BILL.

HE ADDED THAT THE BILL MADE SIMILAR PROVISION FOR THE REGISTRATION OF INVESTMENT ADVISERS' PARTNERSHIPS.

ONE FURTHER AIM OF THE BILL WAS TO REQUIRE NEW DEALERS TO HAVE CERTAIN QUALIFICATIONS AND EXPERIENCE, HE SAID.

+ IN VIEW OF THE NEED TO CONTINUE TO IMPROVE THE QUALITY AND STANDARD OF STOCK BROKING ACTIVITIES, THE BILL INTRODUCES NEW AND IMPORTANT EXPERIENCE, QUALIFICATION AND FINANCIAL REQUIREMENTS FOR DEALERS.

+DEALERS WILL BE REQUIRED EITHER TO HAVE AT LEAST THREE YEARS' EXPERIENCE IN DEALING IN SECURITIES IN HONG KONG OR ON ANY RECOGNISED OVERSEAS STOCK MARKET, OR HAVE PASSED A PROFESSIONAL EXAMINATION APPROVED BY THE SECURITIES COMMISSION, HE SAID.

/MR HIGGINSON