XN000022-1985-07-24 — Page 7

5

WEDNESDAY, JULY 24, 1985

MR HIGGINSON NOTED THAT ALL DEALERS WOULD BE REQUIRED TO COMPLY WITH CERTAIN MINIMUM FINANCIAL REQUIREMENTS, WHICH INCLUDED MAINTAINING IN THE STOCKBROKING BUSINESS A MINIMUM NET CAPITAL OF $1 MILLION FOR INDIVIDUAL DEALERS AND $5 MILLION FOR DEAL ING CORPORATIONS.

+FOR DEAL ING PARTNERSHIPS, THE MINIMUM NET CAPITAL REQUIREMENT WILL BE CALCULATED ACCORDING TO THE NUMBER AND TYPE OF REGISTERED DEALERS IN THE PARTNERSHIP,+ HE ADDED.

ANOTHER FINANCIAL REQUIREMENT WOULD BE TO MAINTAIN A MINIMUM LIQUIDITY MARGIN EQUAL TO 10 PER CENT OF THE MINIMUM NET CAPITAL REQUIREMENT.

+FINALLY, PROVISIONS PREVIOUSLY CONTAINED IN THE FIRST SCHEDULE TO THE STOCK EXCHANGES UNIFICATION ORDINANCE, TOGETHER WITH NECESSARY AMENDMENTS, ARE NOW RE-ENACTED IN PART 111 OF THE BILL, HE SAID.

MR HIGGINSON TOLD THE LEGISLATIVE COUNCIL THAT THE PROVISIONS CONTAINED IN THE BILL HAD BEEN DRAWN UP IN CONSULTATION WITH AND HAD THE FULL SUPPORT OF THE SECURITIES COMMISSION AND THE COMMITTEE OF THE UN IF IED EXCHANGE.

+ IT IS PROPOSED THAT PART I OF THE BILL, WHICH DEALS PRINCIPALLY WITH REGISTRATION MATTERS, BE BROUGHT INTO OPERATION ONCE THE SUBSIDIARY LEGISLATION ON SUCH MATTERS IS MADE. PART !!! OF THE BILL WILL THEN COME INTO FORCE WHEN THE UNIFIED EXCHANGE COMMENCE OPERATION IN EARLY 1986, + HE SAID.

DEBATE ON THE BILL WAS ADJOURNED.

TRAVEL AGENTS BILL AIMS TO PROTECT CONSUMERS

*****

THE PRINCIPAL PURPOSE OF THE TRAVEL AGENTS BILL 1985 IS TO PROTECT CONSUMERS, THE SECRETARY FOR ECONOMIC SERVICES, THE HON GERRY HIGGINSON, SAID IN THE LEGISLATIVE COUNCIL TODAY.

THE BILL DOES THIS BY THE ESTABLISHMENT OF A SYSTEM OF LICENSING OF TRAVEL AGENTS WHO PROVIDE OUTBOUND TRAVEL SERVICES AND THE CREATION OF A RESERVE FUND FROM WHICH EX-GRATIA PAYMENTS MAY BE MADE TO CLIENTS IN THE EVENT THAT COURT JUDGMENTS AGAINST SUCH TRAVEL AGENTS CANNOT BE SATISFIED.

THE BILL ALSO AIMS TO PROVIDE THE BASIC FRAMEWORK ON WHICH THE TRAVEL INDUSTRY CAN DEVELOP ITS OWN STANDARDS AND SELF- REGULATION.

/THE SPECIAL