XN000022-1989-01-09 — Page 12

MONDAY, JANUARY 9, 1989

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"WE ARE FULLY CONSCIOUS OF THE IMPORTANCE OF STRIKING THE RIGHT BALANCE BETWEEN THE AVAILABILITY OF ADEQUATE POWERS TO COMBAT FRAUD AND MARKET ABUSES AND THE NEED TO PRESERVE CIVIL LIBERTIES; AND BETWEEN ENCOURAGING THE GROWTH OF MARKETS AND ENSURING THAT THEY DO NOT GET OUT OF CONTROL, HE SAID.

CONSTITUTION,

'A DRAFT BILL ESTABLISHING THE COMMISSION'S FUNCTIONS, DUTIES AND POWERS HAS NOW BEEN FINALISED AND THE ADVICE OF THE EXECUTIVE COUNCIL IS TO BE SOUGHT SHORTLY.

ORGANISATIONS,

MR NENDICK SAID THAT VARIOUS MARKET PROFESSIONAL BODIES AND ADVISORY COMMITTEES HAD BEEN CONSULTED AND THEIR VIEWS TAKEN INTO ACCOUNT IN FINALISING THE BILL.

I

"UNFORTUNATELY, SOME PEOPLE BELIEVED, WRONGLY, THAT GOVERNMENT ALREADY MADE UP ITS MIND ON THE MAJOR ISSUES AND THAT CONSULTATION WAS THEREFORE A MERE SHAM, HE SAID.

HAD

"LET ME ONCE AGAIN STRESS THAT THE CONSULTATION PROCESS HAS BEEN A GENUINE ONE AND THAT SIGNIFICANT MODIFICATIONS HAVE BEEN MADE TO A NUMBER OF PROPOSALS, IN PARTICULAR WHERE THE POWERS SOUGHT FOR THE NEW COMMISSION WERE PERCEIVED AS TOO DRACONIAN."

ON THE COMMISSION'S FUNDING ARRANGEMENTS, MR NENDICK POINTED OUT THAT IN DRAWING UP THE PROPOSALS THE GOVERNMENT HAD KEPT TWO PRINCIPLES FIRMLY IN MIND.

"FIRST, THAT OVER THE COME FROM THE MARKET BUT

THIS IS IN GOVERNMENT SECURITIES REVIEW COMMITTEE,

-

LONGER TERM MOST OF THE FUNDING SHOULD WITH A CONTINUING CONTRIBUTION FROM LINE WITH THE

THE

HE SAID.

OF RECOMMENDATION

INVESTORS, SHOULD

"SECONDLY, THAT OVERALL TRANSACTION COSTS, WHICH DIRECTLY OR INDIRECTLY WILL FALL TO BE MET BY

NOT RESULT IN HONG KONG'S MARKETS BECOMING UNCOMPETITIVE WITH THOSE IN OTHER MAJOR CENTRES BOTH IN THE REGION AND WORLDWIDE."

Ꭸ

THE COMMISSION'S ANNUAL BUDGET WOULD NEED TO BE APPROVED BY THE GOVERNOR, AFTER SCRUTINY BY THE ADMINISTRATION, AND THE DIRECTOR OF AUDIT WOULD HAVE ACCESS TO

COMMISSION'S BOOKS WHENEVER HE SO REQUIRED, HE EXPLAINED.

THE

"THE COMMISSION WILL ALSO HAVE TO SUBMIT AN ANNUAL REPORT

ITS ANNUAL THIS, TOGETHER WITH

ACCOUNTS, WILL BE TABLED AT LEGISLATIVE COUNCIL," MR NENDICK SAID.

AND

THE

"FINANCE COMMITTEE WILL ALSO NEED PROPOSED GRANT FROM GOVERNMENT,

TO

APPROVE EACH YEAR

THE

/"TAKING ALL