XN000022-1988-10-04 — Page 4

3

TUESDAY, OCTOBER 4, 1988

"IT IS EXTREMELY UNLIKELY TO SUCCEED IN THIS AND, EVEN IF

BE BOUND TO DID, IT WOULD STILL

DISPLEASE SOME ELEMENTS IN COMMUNITY," HE SAID.

IT

THE

'IF IT ENDED UP PLEASING EVEN HALF THE PEOPLE HALF THE TIME WOULD BE A MIRACLE," HE ADDED.

IT

OWEN OF

EXTENT OF ON THE CONCERN EXPRESSED BY SOME QUARTERS ABOUT THE

SFC SHOULD HAVE,

MR THE NEW POWERS WHICH IT WAS PROPOSED THE SAID THAT IN ALL BUT ONE OF THE AREAS (THE EXCEPTION BEING SOME

THE THE POWERS TO GIVE DIRECTIVES TO THE EXCHANGES)

POWERS PROPOSED FOR THE SFC WERE SIMILAR TO AND NO MORE AUTHORITARIAN THAN THOSE OF REGULATORS IN MOST OF THE WORLD'S MAJOR

WITH DEMOCRACIES

WELL-DEVELOPED FINANCIAL MARKETS.

PROPOSED HE SAID THAT CHECKS AGAINST MISUSE OF THE POWERS WERE ALSO EXTENSIVE.

REGULATORY

MR OWEN SAID ONE MAIN TASK HE AND THE SPECIAL UNIT OF THE

BEEN WORKING MONETARY AFFAIRS BRANCH HAD

ON DURING THE LAST TWO MONTHS WAS THE DRAFT BILL WHICH WOULD BRING THE SFC INTO BEING.

HE SAID THE MAIN PROVISIONS OF THE WITH THE FOLLOWING MATTERS:

PRESENT DRAFT BILL

DEALT

THE ESTABLISHMENT AND CONSTITUTION OF THE SFC.

RESERVE THE SFC WILL HAVE NEW

POWERS, IN LINE WITH THE REVIEW SECURITIES

COMMITTEE'S

ΤΟ RECOMMENDATIONS,

GIVE DIRECTIVES TO THE EXCHANGES OR CLEARING HOUSES. THESE POWERS ARE DESIGNED TO ENABLE THE SFC, WITHOUT RESORTING TO THE "NUCLEAR DETERRENT" OF CLOSING AN EXCHANGE, TO ENSURE THAT CORRECTIVE ACTION IS TAKEN BY

OR THE COUNCIL MANAGEMENT OF THAT EXCHANGE WHEN THE CONVINCED SUCH ACTION IS NECESSARY IN THE

THE

COMMISSION

19

CONSULT

PUBLIC

THE

INTEREST. FINANCIAL

IS COMMISSION

REQUIRED TO SECRETARY BEFORE USING THESE POWERS.

NEW LICENSING WITHOUT INTRODUCING A COMPREHENSIVE THE BILL MAKES CERTAIN ADJUSTMENTS TO THE

DESIGNED TO ENABLE THE REGISTRATION PROCEDURES, UNDERTAKE A MORE THOROUGH REVIEW OF APPLICATIONS REGISTRATIONS OR RENEWALS, AND TO REQUIRE THE SATISFY IT THAT HE IS A "FIT AND PROPER" PERSON THE RELEVANT BUSINESS.

*

THE

ALSO EMPOWERS

י

SYSTEM, PRESENT

SFC то

FOR NEW APPLICANT ΤΟ TO CONDUCT

THE

SFC

ΤΟ

MAKE PERSONS)

RULES то

DRAFT BILL REQUIRING FINANCIAL INTERMEDIARIES (REGISTERED MAINTAIN PRESCRIBED LEVELS OF CAPITAL AND LIQUIDITY.

THE BILL