XN000022-1988-10-04 — Page 5

TUESDAY, OCTOBER 4, 1988

THE BILL ALSO CONTAINS A NEW SECTION GIVING POWER TO THE SFC TO INTERVENE IN THE BUSINESS OF ANY REGISTERED PERSON EITHER TO REQUIRE HIM TO TAKE, OR

PREVENT HIM TAKING, PARTICULAR ACTIONS, OR TO TAKE CONTROL OF THE BUSINESS, IF THE COMMISSION BELIEVES SUCH INTERVENTION IS NECESSARY TO PROTECT INVESTORS. THE NEW INTERVENTION POWER IS A MORE SOPHISTICATED INSTRUMENT WHICH PERMITS CAREFULLY PIN-POINTED INTERVENTION TO PROTECT INVESTORS WITHOUT EFFECTIVELY TO CLOSE DOWN THE BUSINESS OF THE CONCERNED.

THE

NEED

INTERMEDIARY

THE BILL ALSO CONTAINS NEW PROVISIONS ΤΟ FACILITATE INVESTIGATIONS INTO BREACHES OF THE ORDINANCES, INCLUDING FRAUDS, MARKET MANIPULATION, CRIMINAL DECEPTION AND INSIDER TRADING.

THERE IS A SECTION IN THE BILL PROVIDING FOR A NEW BOARD APPEAL TO HEAR APPEALS AGAINST DECISIONS OF EXECUTIVES THE COMMISSION IN RELATION TO SUSPENSION OR REVOCATION LICENCES OR USE OF THE INTERVENTION POWERS.

OF

OF OF

* FINALLY, THERE IS A SECTION DEALING WITH THE FUNDING OF THE

SFC.

MR OWEN SAID HE AND THE SPECIAL UNIT OF THE MONETARY AFFAIRS BRANCH HAD BEEN WORKING TOWARDS A TARGET OF HAVING THE SFC OPERATIONAL BY EARLY 1989.

"THE GENERAL OBJECTIVE OF THE SFC WILL BE TO PROMOTE THE INTEGRITY, EFFICIENCY AND ORDERLY CONDUCT OF SECURITIES AND FUTURES MARKETS IN HONG KONG, AND OF PARTICIPANTS IN SUCH MARKETS, AND TO ENSURE THAT THE INTERESTS OF INVESTORS ARE PROTECTED AGAINST DISHONEST PRACTICES AND MARKET ABUSES.

"

'CONSISTENTLY WITH THIS OBJECTIVE, THE SFC WILL AIM ΤΟ MAINTAIN AND PROMOTE THE DEVELOPMENT OF HONG KONG'S POSITION AS A LOCAL, REGIONAL AND INTERNATIONAL FINANCIAL CENTRE, INCREASINGLY SERVING THE NEEDS OF CHINA AND THE PACIFIC RIM, HE SAID.

P

MR OWEN SAID THAT PROBABLY THE BIGGEST CHALLENGE FACING THE SFC WOULD BE TO RECRUIT AND MOTIVATE THE STAFF NEEDED TO PERFORM ITS FUNCTIONS EFFECTIVELY.

AND

HE SAID THE OFFICE OF THE COMMISSIONER FOR SECURITIES COMMODITIES TRADING (OCS) CONTAINED MANY CAPABLE AND EXPERIENCED STAFF WHO HE HOPED WOULD FORM THE NUCLEUS OF THE SFC.

/HE SAID