XN000022-1988-03-30 — Page 7

WEDNESDAY, MARCH 30, 1988

OF

**WE ARE THINKING OF BARRING PEOPLE FROM HOLDING DIRECTORSHIPS OF COMPANIES; ENABLING THE TRIBUNAL OR COURT TO ORDER DISGORGEMENT PROFITS; OR IMPOSING PENALTIES IN THE FORM OF ORDERS OF COSTS, OR ORDERS THAT AN INSIDER PAYS, FOR EXAMPLE, TRIPLE DAMAGES, OR SOMETHING ALONG THOSE LINES, MR JACOBS SAID.

申軒

IN RESPONSE TO A QUESTION WHICH STATED THAT THE UNITED KINGDOM WAS MAKING INSIDER DEALING A CRIMINAL OFFENCE, MR JACOBS SAID HE DID NOT THINK THAT IMPRISONMENT WAS THE ONLY SUITABLE PENALTY FOR SOMEONE FOUND GUILTY OF INSIDER DEALING.

"I THINK THERE ARE OTHER THINGS YOU CAN DO TO AIM THAT WOULD PROVE TO BE SUFFICIENT DETERRENT. WHAT WE ARE TRYING TO DO IS TO ERADICATE INSIDER DEALING FROM OUR MARKET PLACE. SO THE SENSIBLE APPROACH IS TO ADOPT A LEGAL PROCESS THAT WILL HAVE THAT EFFECT, HE SAID.

MR JACOBS SAID AN ANNOUNCEMENT WOULD BE MADE NEARER THE TIME OF THE PUBLICATION OF THE SECURITIES REVIEW COMMITTEE REPORT.

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GOVT DETERMINED TO ENSURE FINANCIAL MARKETS' INTEGRITY

AND

THE GOVERNMENT IS DETERMINED TO SEE THAT THE INSTITUTIONAL REGULATORY FRAMEWORK FOR THE FINANCIAL MARKETS OF HONG KONG ENSURES THE INTEGRITY OF THE MARKET PLACE AND THAT THE INTERESTS OF INVESTORS ARE PROPERLY SAFEGUARDED, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (WEDNESDAY).

HE WAS SPEAKING AT THE OPENING OF THE EXHIBITION ON FINANCE ORGANISED BY THE HONG KONG MANAGEMENT ASSOCIATION.

BLUEPRINT,

MR NENDICK SAID THE REPORT OF THE SECURITIES REVIEW COMMITTEE WHICH WOULD BE AVAILABLE IN MAY WOULD PROVIDE A VALUABLE IDENTIFYING IMPORTANT CHANGES WHICH WOULD BE NECESSARY IF WAS TO MAINTAIN ITS STANDING AS A MAJOR INTERNATIONAL CENTRE OVER THE YEARS `AHEAD.

HONG KONG FINANCIAL

"THE EVENTS OF LAST OCTOBER, THOUGH UNFORTUNATE IN THEMSELVES, HAVE PROVIDED THE CATALYST FOR CHANGE, AND I BELIEVE THAT WE WILL BE ABLE TO ATTRACT A BROAD CONSENSUS OF SUPPORT FOR IMPLEMENTING THE COMMITTEE'S RECOMMENDATIONS," HE SAID.

MR NENDICK SAID HONG KONG'S GROWTH AS A MAJOR INTERNATIONAL FINANCIAL CENTRE HAD BEEN RAPID AND THE FINANCIAL SERVICES INDUSTRY HERE HAD BECOME INCREASINGLY INTEGRATED AND COMPLEX.

/HE ADDED