XN000022-1989-01-18 — Page 4

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WEDNESDAY, JANUARY 18, 1989

"I INTEND AT THE COMMITTEE

STAGE

ΤΟ BILL

MOVE AN NEW COMMISSION, BY MARKET BODIES,"

OF THIS AMENDMENT TO CLAUSE 4 TO ADD TO THE FUNCTIONS OF THE THE PROMOTION AND DEVELOPMENT OF SELF-REGULATION HE SAID.

THE AS FOR THE MATTER OF FUNDING, THE FINANCIAL SECRETARY SAID

AD HOC GROUP ADMINISTRATION WOULD BE DISCUSSING THIS WITH THE LEGCO SET UP TO STUDY THE BILL.

OBJECTIVE HAS BEIN "LET ME MERELY SAY AT THIS STAGE THAT OUR

THE IN LINE WITH THE RECOMMENDATIONS OF ARRANGEMENTS ΤΟ DEVISE

THE COMMISSION SHOULD BE LARGELY SECURITIES REVIEW COMMITTEE THAT

SHOULD ALSO PROVIDE A FUNDED BY THE MARKET BUT THAT THE GOVERNMENT CONTRIBUTION.

ΤΟ BE IN THE AND ACTIVITIES RECOVERY BASIS, AND A

"THE BILL PROVIDES FOR THE MARKET CONTRIBUTION FOR SPECIFIC SERVICES FORM

CHARGES OF FEES AND PERFORMED BY THE COMMISSION ON A BROAD COST STATUTORY LEVY ON TRANSACTIONS RECORDED ON THE EXCHANGES," HE SAID.

APPROVAL TO THE SUBJECT

OF THE FINANCE COMMITTEE,

THE OF AN INITIAL START-UP AN ANNUAL CONTRIBUTION TOWARDS

GOVERNMENT CONTRIBUTION WOULD TAKE THE FORM GRANT, AN INTEREST-FREE ADVANCE AND THE COMMISSION'S COSTS, WITH PROVISION FOR THE FROM THE GOVERNMENT, AS AN EMERGENCY MEASURE, BELOW A CERTAIN LEVEL, HE SAID.

COMMISSION TO BORROW IF ITS RESERVES FELL

THE MAJOR ASPECTS OF FUNCTIONS, POWERS AND THE SECURITIES COMMISSION,

MR JACOBS WENT ON TO HIGHLIGHT SOME OF THE BILL WHICH SOUGHT TO VEST IN THE SFC THE DUTIES OF THE EXISTING REGULATORY BODIES COMMODITIES TRADING COMMISSION AND THE OFFICE OF THE COMMISSIONER,

-

ALL THE LEGISLATIVE HE NOTED THAT THE BILL DID NOT IMPLEMENT PROPOSALS IN THE SECURITIES REVIEW COMMITTEE REPORT, BUT IT DID GIVE WHICH WERE CONSIDERED ADDITIONAL POWERS THOSE THE NEW COMMISSION

PHASE OF NECESSARY FOR IT TO OPERATE EFFECTIVELY DURING THE INITIAL ITS OPERATION.

THESE INCLUDED

PROVISIONS

FOR A MORE ROBUST REGISTRATION THE BETTER SUPERVISION OF THEIR SYSTEM FOR INTERMEDIARIES AND FOR

PROTECT BUSINESSES IN ORDER TO ENSURE INTEGRITY OF THE MARKETS AND TO INVESTORS.

A FIRST BUT BARLIER, MR JACOBS SAID THE SFC BILL REPRESENTED IMPORTANT STEP IN THE OVERHAUL OF SECURITIES LEGISLATION IN HONG KONG.

THE

HE ALSO REFERRED BRIEFLY TO SOME OF THE MAJOR PROPOSALS OF

BHOULD AIM SECURITIES REVIEW COMMITTEE WHICH BELIEVED THAT HONG KONG

ASIA AND, ΤΟ TO BECOME THE PRE-EMINENT CAPITAL MARKET IN SOUTH BAST

OF

ITS THAT END, SHOULD PROMOTE THE PROGRESSIVE INTERNATIONALISATION SECURITIES MARKETS.

DEBATE ON THE BILL WAS ADJOURNED.

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