XN000022-1988-06-22 — Page 31

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WEDNESDAY, JUNE 22, 1988

NENDICK POINTED

THAT

MR

OUT

THE

FOUR CURRENT GOVERNMENT-APPOINTED DIRECTORS ON THE BOARD OF THE FUTURES EXCHANGE INCLUDED THE CHAIRMAN AND THE EXECUTIVE VICE-CHAIRMAN, NEITHER OF WHOM WAS ELIGIBLE FOR ELECTION TO THE BOARD AS THEY WERE NOT MEMBERS OF THE EXCHANGE.

THESE PERSONS WERE APOINTED IN OCTOBER LAST YEAR TO ASSIST IN STEERING THE EXCHANGE THROUGH THE DIFFICULT PERIOD, HE ADDED.

DEBATE OF THE BILL WAS ADJOURNED.

BANKING BILL PROPOSALS WILL FACILITATE CO-OPERATION

THE BANKING (AMENDMENT) (NO. 2) BILL WILL ENABLE THE COMMISSIONER OF BANKING TO DISCLOSE INFORMATION CONCERNING LOCALLY INCORPORATED AUTHORISED INSTITUTIONS TO SPECIFIED STATUTORY OFFICES IN HONG KONG AND TO THEIR OVERSEAS COUNTERPARTS, THE ACTING FINANCIAL SECRETARY, THE HON DAVID NENDICK, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE BILL, MR NENDICK SAID WHILE THE PROPOSALS AIMED AT FACILITATING CLOSER CO-OPERATION BETWEEN SUPERVISORS, THE IMMEDIATE CAUSE FOR THE BILL AROSE FROM THE NEED TO PROVIDE INFORMATION TO THE UNITED KINGDOM REGULATORY AUTHORITIES.

HE EXPLAINED THAT THIS WAS A RESULT OF THE IMPLEMENTATION THE UK FINANCIAL SERVICES ACT 1986.

L

OF

THE UK FINANCIAL SERVICES ACT 1986 REQUIRED CERTAIN REGULATORY BODIES THERE THE SECURITIES AND INVESTMENT BOARD (SIB) AND A NUMBER OF SELF-REGULATING ORGANISATIONS (SRO'S)

ΤΟ ASSESS, AND SUBSEQUENTLY, TO MONITOR THE FINANCIAL SOUNDNESS OF THE INSTITUTIONS AUTHORISED TO CONDUCT INVESTMENT BUSINESS IN THE UK.

++

—

IN THE CASE OF AN OVERSEAS INSTITUTION, THE WILL REQUIRE THE SUPERVISORS IN THE CENTRE IN WHICH IS BASED TO ASSIST THEM IN THE TASK, HE SAID.

•

SIB AND SRO'S THE INSTITUTION

"IF CO-OPERATION IS NOT FORTHCOMING, THE INSTITUTION MAY BE REQUIRED TO INCORPORATE ITSELF IN THE UK OR

EVEN AUTHORISATION WITHHELD."

MAY

HAVE ITS

/MR NENDICK