XN000022-1989-04-09 — Page 2

SUNDAY, APRIL 9, 1989

AMENDMENTS TO SECURITIES AND FUTURES COMMISSION BILL 1989

THE LEGCO DEBATE ON THE SECOND READING OF FUTURES COMMISSION BILL WILL BE RESUMED ON APRIL AMENDMENTS WILL BE MADE TO 52 CLAUSES OF THE CLAUSES AND ONE NEW SCHEDULE WILL BE ADDED.

THE

SECURITIES AND 12. MORE THAN 270 BILL AND FIVE NEW

DISCUSSION BETWEEN

"THE AMENDMENTS ARE THE RESULT OF DETAILED THE AD HOC GROUP OF THE LEGISLATIVE COUNCIL AND THE ADMINISTRATION OVER A PERIOD OF SEVERAL WEEKS, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID.

"THE BILL CONTAINS ADEQUATE CHECKS AND BALANCES ON THE POWERS OF THE SECURITIES AND FUTURES COMMISSION WITHOUT UNDERMINING THE ABILITY OF THE COMMISSION TO CARRY OUT ITS ROLE EFFECTIVELY."

+

THE MAJOR AMENDMENTS ARE DESIGNED TO IMPROVE THE CONSTITUTION OF THE SPC AND ITS ADVISORY COMMITTEE, AND TO PROVIDE SUFFICIENT CHANNELS OF APPEAL AGAINST SFC DECISIONS RELATING ΤΟ THE REGISTERED PERSONS, EXCHANGE COMPANIES AND CLEARING HOUSES.

PROVISIONS GOVERNING THE PERFORMANCE OF CERTAIN SUPERVISORY AND INVESTIGATORY FUNCTIONS BY THE SFC ARE TO BE AMENDED TO FACILITATE ITS EFFECTIVE OPERATION AND TO GUARD AGAINST POSSIBLE EXCESSIVE USE OF POWERS.

THE FUNDING PROVISIONS ARE ALSO TO BE AMENDED ΤΟ PROVIDE FOR THE TRANSACTION LEVY ON THE STOCK EXCHANGE TO BE APPORTIONED BETWEEN THE SFC AND THE EXCHANGE.

SINCE THE BILL WAS INTRODUCED BY THE FINANCIAL SECRETARY IN THE LEGISLATIVE COUNCIL ON JANUARY 18, THE LEGCO AD HOC GROUP, IN CONSULTATION WITH THE ADMINISTRATION, CONCERNED MARKET BODIES AND PROFESSIONAL ORGANISATIONS, HAS BEEN EXAMINING THE BILL CLOSELY HAS REACHED AGREEMENT WITH THE ADMINISTRATION ON THE AMENDMENTS.

AND

"I AM GRATEFUL TO THE GROUP UNDER THE CHAIRMANSHIP OF ITS ABLE CONVENOR, MR STEPHEN CHEONG, FOR ITS CAREFUL SCRUTINY OF THE BILL, MR JACOBS SAID.

"SUBJECT TO THE LEGISLATIVE COUNCIL ACCEPTING THE AMENDMENTS TO THE BILL AT THE COMMITTEE STAGE ON APRIL 12, WE AIM TO BRING THE ORDINANCE INTO EFFECT ON MAY 1989.

1.

"THE ORDINANCE WILL BE THE REGULATORY REGIME FOR THE SECURITIES KONG.

CORNERSTONE OF A NEW, MODERN FUTURES INDUSTRY IN HONG

AND

FIRST PHASE OF REFORM OF THE ENSURING THAT

OF

"THE SFC BILL REPRESENTS THE SECURITIES LEGISLATION IN HONG KONG IN THE PROCESS OUR MARKET REGULATION IS UP TO INTERNATIONAL STANDARDS.

"THE NEXT PHASE WILL BE A THOROUGII OVERHAUL ALL OUR SECURITIES LEGISLATION," HE ADDED.

AND UPDATING OF

/2