XN000022-1989-04-12 — Page 41

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WEDNESDAY, APRIL 12, 1989

SFC BILL STRIKES RIGHT BALANCE

THE SECURITIES AND FUTURES COMMISSION BILL 1989 HAD STRUCK A BALANCE BETWEEN THE NEEDS OF THE NEW COMMISSION TO EFFECTIVELY WATCH OVER THE SECURITIES INDUSTRY, AND THE LEGITIMATE RIGHTS OF THE MARKET PARTICIPANTS TO CARRY ON THEIR ACTIVITIES FREE FROM OVER-REGULATION, THE HON PETER WONG SAID TODAY (WEDNESDAY).

MR WONG WAS SPEAKING IN THE LEGISLATIVE COUNCIL IN SUPPORT THE BILL.

OF

HE SAID THE MEMBERS OF THE SOON то BE DEFUNCT SECURITIES COMMISSION AND THE COMMODITIES TRADING COMMISSION FULLY SUPPORTED THE HAY DAVISON COMMITTEE IN ITS ENQUIRIES INTO THE REASONS WHY THE HONG KONG MARKET WENT WRONG.

HE SAID HE WAS APPALLED BY THE INITIAL DRAFT OF THE BILL IN THE MIDDLE OF 1988.

"THE HAY DAVISON

REPORT WAS USED то PRODUCE AN ABSOLUTE TRAVESTY OF A BILL WHICH WOULD HAVE GIVEN THE COMMISSIONER CARTE BLANCHE TO RULE OVER THE INDUSTRY AND HAD INDIVIDUAL FREEDOM SERIOUSLY COMPROMISED, MR WONG SAID.

HE SAID THAT IN RETROSPECT HE WAS SURPRISED THAT THE LEGAL DEPARTMENT COULD BE THE AUTHOR OF SUCH A DOCUMENT.

MR WONG RECALLED THAT MUCH OF THE SECURITIES INDUSTRY'S AND THE CONCERNED PROFESSIONALS' INITIAL SYMPATHY AND GOODWILL FOR REFORM WAS LOST, AND THE LEGISLATIVE COUNCIL AD HOC GROUP STUDYING THE BILL HAD TO RESORT TO ATTACK TACTICS TO REMOVE THE WORST OF THE EXCESSES.

"BY THE TIME WE GOT TO DISCUSSING THE SIZE OF THE COMMISSION AND ITS FUNDING, WE DID SO WITH ANTAGONISM AND DISBELIEF. PHRASES SUCH AS EMPIRE BUILDING AND UNNECESSRY DUPLICATION OF FUNCTIONS WERE COMMONLY USED," HE NOTED.

HE SAID HE WAS PLEASED THAT AT THE END OF THE DAY REASON PREVAILED AND RESULTED IN A RESOLUTION OF THE FUNDING PROBLEM WHICH PROVED TO BE GORDIAN KNOT.

EVERYTHING FLOWED SMOOTHLY THEREAFTER WHEN COMMUNICATIONS WERE RE-ESTABLISHED. THE RATIONALES WERE THEN EXPLAINED FULLY AND I BELIEVE THAT WE NOW HAVE A WORKABLE SOLUTION FOR THE WONG SAID.

MARKETS, MR

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