XN000022-1989-04-12 — Page 43

WEDNESDAY, APRIL 12, 1989

41

BILL,

WITH THE ENACTMENT OF THE COMMISSION WILL BE ESTABLISHED ON MAY 1.

THE

SECURITIES

AND FUTURES

AMENDED FORM,

IN ITS

THE FINANCIAL SECRETARY SAID THE BILL, WOULD PROVIDE ADEQUATE PUBLIC ACCOUNTABILITY ON THE PART OF THE COMMISSION WITHOUT ERODING ITS AUTHORITY AND AUTONOMY.

"WHILST IT IS INTENDED THAT THE COMMISSION SHOULD HAVE A HIGH DEGREE OF AUTONOMY IN ITS DAY-TO-DAY OPERATIONS, ANY MAJOR CHANGES ΤΟ AND DEVELOPMENTS IN POLICY WILL STILL BE SUBJECT TO NORMAL CONSULTATION WITH THE INDUSTRY AND THE ADMINISTRATION, AND WHERE NECESSARY, THE APPROVAL OF THE GOVERNOR IN COUNCIL

BE SOUGHT, HE ADDED.

WILL

**

MR

JACOBS EMPHASISED THAT THE COMMISSION AND ENSURE THAT THEIR EFFICIENT WAY, AND

THE STOCK COLLECTIVE THAT THERE

EXCHANGE WOULD WORK TOGETHER ΤΟ RESOURCES WOULD BE USED IN THE MOST SHOULD BE NO UNNECESSARY DUPLICATION.

THE COMMISSION'S TASK WAS то ENSURE THAT THE REGULATORY SYSTEMS IN HONG KONG WERE UP TO THE PREVAILING INTERNATIONAL STANDARDS.

"WE ARE NOW PART OF ONE INTER-RELATED WORLD MARKET IN WHICH INTERNATIONAL INVESTORS ARE PLAYING AN INCREASINGLY IMPORTANT ROLE AND WE CANNOT AFFORD TO IGNORE THE INTERNATIONAL DIMENSION,

MR JACOBS.

"T

ADDED

WITH THE ESTABLISHMENT OF THE COMMISSION ON MAY 1. RULES, REGULATIONS AND GUIDELINES WOULD HAVE TO BE MADE UNDER THE ORDINANCE OR ITS SUBSIDIARY LEGISLATION AND THESE WOULD ALL BE WIDELY PROMULGATED.

"IN FORMULATING ITS PROPOSALS AND IN IMPLEMENTING IT POLICIES THE COMMISSION WILL CONSULT MARKET BODIES, PAYING SPECIAL ATTENTION TO HONG KONG'S OWN CIRCUMSTANCES AND THE NEEDS OF BOTH INTERNATIONAL CORPORATE PLAYERS AS WELL AS LOCAL BROKERS. NATURALLY THE COMMISSION WILL HAVE TO ESTABLISH PRIORITIES IN RELATION TO ITS ACTIVITIES AND EXERCISE ITS POWERS JUDICIOUSLY AND WITH FLEXIBILITY, HE SAID.

THE MAJOR AMENDMENTS MADE TO THE BILL ARE OUTLINED BELOW

-

THE COMMISSION SHOULD, AS ONE ITS STATUTORY FUNCTIONS, BE RESPONSIBLE FOR PROMOTING AND DEVELOPING SELF-REGULATION BY MARKET BODIES IN THE SECURITIES AND FUTURES INDUSTRIES (CLAUSE 41.

THE CHAIRMAN OF A COMMISSION MEETING WILL NOT BE ABLE TO EXERCISE HIS CASTING VOTE WITHOUT PRIOR CONSULTATION WITH THE FINANCIAL SECRETARY (CLAUSE 5).

SAFEGUARDS ARE PROVIDED FOR AGAINST EXCESSIVE DELEGATION OF PWOERS. THE LEGISLATIVE COUNCIL WILL HAVE A FINAL SAY ON WHICH POWERS SHOULD NOT BE DELEGATED BY THE COMMISSION (NEW CLAUSE SA AND SCHEDULE 1).

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