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1989

WEDNESDAY, APRIL 12, 1989

SFC SHOULD NOT PROTECT SECTORAL INTEREST

*

THE SECURITIES AND FUTURES COMMISSION SHOULD NOT BE IN THE PROTECTION OF SECTORAL INTERST, THE HON NELLIE FONG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING AMENDMENTS TO CLAUSES 46(1) AND 47(1) OF THE AND FUTURES COMMISSION BILL 1989 AT THE COMMITTEE STAGE, SAID THE LEGCO AD HOC GROUP WAS CONCERNED THAT THE CERTAIN GROUP OF INVESTORS FROM FINANCIAL LOSS EXPENSE OF THE ANOTHER GROUP OF INVESTORS UNDER THE

INVOLVED EMPHASISED

SECURITIES MRS FONG OF A

PROTECTION

COULD ORIGINAL CLAUSES.

BE AT THE

AND 47 (1) CONSIDERED IT

LOSS", SHOULD BR

AS ONE OF THE INSTANCES UNDER WHICH CLAUSES 46(1) CAME INTO PLAY WAS IN A SITUATION WHERE THE COMMISSION APPROPRIATE "FOR THE PROTECTION OF INVESTORS AGAINST FINANCIAL IT WAS PROPOSED THAT THE WORDS "AGAINST FINANCIAL LOSS" DELETED TO ADDRESS SUCH CONCERN.

OF THE STOCK RESPECT OF A

"THE AD HOC GROUP ALSO SHARES THE CONCERN EXCHANGE THAT THERE IS NO PROVISION FOR APPEAL IN RESTRICTION NOTICE SERVED BY THE COMMISSION UNDER CLAUSE 46.

THE

"THE ADDITION OF THE NEW CLAUSE 46(2A) PROVIDES AN APPEAL TO

GOVERNOR IN COUNCIL AGAINST A RESTRICTION RELATING то THE AMENDMENT OF THE MEMORANDUM OF ASSOCIATION ARTICLES OF ASSOCIATION OF AN EXCHANGE COMPANY OR CLEARING MRS FONG EXPLAINED.

AVENUE

FOR

NOTICE

OR

HOUSE,"

ON CLAUSE 47(4) WHICH PROVIDED THAT A SUSPENSION "COME INTO OPERATION IMMEDIATELY ON THE MAKING OF THE FONG SAID THE AD HOC GROUP CONSIDERED THAT TO AVOID THE OF UNFAIR RETROSPECTIVITY, THE ORDER SHOULD NOT TAKE EFFECT BEFORE IS SERVED.

ORDER SHOULD ORDER" MRS

IT

POSSIBILITY

ORDER

OR

"A NEW CLAUSE 47(4) IS PROPOSED 80 THAT A SUSPENSION SHALL TAKE EFFECT ONLY WHEN IT IS SERVED ON THE EXCHANGE COMPANY CLEARING HOUSE, AND THAT COPIES OF THE ORDER OR NOTICE SHOULD BE SERVED NOT ONLY ON THE EXCHANGE COMPANY OR

OF EXTENSION CLEARING BUT ALSO ON THE

HOUSE, DIRECTORS, COMMITTEE MEMBERS OR OFFICERS CONCERNED,

CHIEF EXECUTIVE SHE CONTINUED.

tt

TURNING TO CLAUSE 47(6), MRS FONG NOTED THAT IT ONLY FOR THE MAKING OF

PROVIDED A NOTICE IN THE GAZETTE OF THE SUSPENSION ORDER MADE BUT DID NOT REQUIRE THE "TERMS" OF THE ORDER

"FACT" OF A

BE PUBLISHED.

TO

THE AMENDMENT TO CLAUSE 47(6) STIPULATED THAT THE SUSPENSION ORDER SHOULD BE PUBLISHED IN THE GAZETTE RATHER THAN FACT" ALONE AS WAS PROVIDED IN THE ORIGINAL CLAUSE.

ACTUAL "THAT

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