XN000022-1988-12-02 — Page 3

FRIDAY, DECEMBER 2, 1988

DRAFT SECURITIES AND FUTURES COMMISSION BILL TO BE MODIFIED: SMS

THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID

SAID NENDICK,

NUMBER IN A TODAY (FRIDAY) THERE WOULD BE SIGNIFICANT MODIFICATIONS OF RESPECTS TO THE

PROPOSALS CONTAINED IN THE DISCUSSION DOCUMENT ON THE DRAFT SECURITIES AND FUTURES COMMISSION BILL.

INITIAL

THE SPEAKING AT THE ANNUAL DINNER OF

INSTITUTE OF CHARTERED AND ADMINISTRATORS SECRETARIES

IN

MR HONG KONG,

ALSO NENDICK

PROCESS THE CONSULTATION

HAD REASSURED ALL INTERESTED PARTIES THAT

HAD BEEN LISTENED TO BEEN A GENUINE ONE AND THAT THE COMMENTS MADE CAREFULLY.

REFERRING TO THE CONCERN OVER SOME OF THE

SAID THAT

PROPOSED POWERS OF THE NEW COMMISSION, MR NENDICK

WHEN THE GOVERNMENT SET MARKETS, IT ABOUT REFORMING ITS REGULATORY SYSTEM FOR THE SECURITIES

BALANCE WAS FULLY CONSCIOUS OF THE IMPORTANCE OF STRIKING THE RIGHT

OF ADEQUATE BETWEEN THE AVAILABILITY

POWERS

FRAUD TO COMBAT MARKET ABUSES AND THE NEED TO PRESERVE CIVIL LIBERTIES.

HE ADDED THAT THE GOVERNMENT WAS ALSO FULLY AWARE OF TO STRIKE THE RIGHT BALANCE BETWEEN ENCOURAGING THE GROWTH OF AND ENSURING THAT THEY DID NOT GET OUT OF CONTROL.

AND

THE NEED MARKETS

NENDICK LOOKING

MADE THIS VERY POINTING OUT THAT THE FINANCIAL SECRETARY HAD

THE CLEAR IN HIS RECENT SPEECH TO

LEGISLATIVE

MR COUNCIL,

WAS THE GOVERNMENT SAID MR JACOBS HAD ALSO EMPHASISED THAT FOR CONSENSUS RATHER THAN CONFRONTATION IN FORMULATING FOR REFORM.

THE PROPOSALS

AS

"THIS WE SEE AS ESSENTIAL IF WE ARE TO HAVE THE CO-OPERATION WE NEED OF PEOPLE IN THE MARKET PLACE IN ENSURING THAT THE SPIRIT, WELL AS THE LETTER, OF THE NEW REQUIREMENTS IS ADHERED TO," HE SAID.

MR NENDICK SAID

EARLY ESTABLISHMENT OF THE COMMISSION WAS IF THE GOVERNMENT WERE ESSENTIAL

TO MAINTAIN

OF THE MOMENTUM

REFORM PROPOSALS PUT IMPLEMENTING THE

FORWARD BY THE SECURITIES

REVIEW COMMITTEE.

то

"WE HAVE THEREFORE ACCORDED TOP PRIORITY

THE DRAFTING OF LEGISLATION TO BRING THIS NEW AUTHORITY INTO EARLY EXISTENCE.

"IF EVERYTHING GOES WELL, AS I HOPE IT WILL, THE BILL INTRODUCED INTO THE LEGISLATIVE COUNCIL EARLY IN JANUARY 1989 CAN EXPECT THE NEW COMMISSION TO BE FULLY OPERATIONAL BEFORE OF THE FIRST QUARTER OF NEXT YEAR, HE SAID.

WILL

BE

AND

WE

THE END

/ON THE