XN000022-1990-06-27 — Page 22

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WEDNESDAY, JUNE 27, 1990

ON RESERVE POWER, MR ARCULLI

SAID THE ADMINISTRATION AGREED THAT THE PRESENT APPROACH OF USING HKSA GUIDELINES SHOULD CONTINUE AND IT WOULD NOT BE NECESSARY FOR THE STATED RESERVE POWER.

THE ADMINISTRATION WOULD ALSO ASSURE THAT BILATERAL, DISCUSSIONS BETWEEN THE AUDITOR AND THE COMMISSIONER SHOULD TAKE PLACE ONLY IN EXCEPTIONAL CIRCUMSTANCES, HE ADDED.

SECURITIES (DISCLOSURE OF INTERESTS) (AMENDMENT) BILL 1990 PASSED

SECURITIES

THE PROVISIONS OF THE

(DISCLOSURE OF INTERESTS) ORDINANCE RELATING TO THE TIME LIMIT FOR NOTIFICATION OF INTERESTS WILL BE REVIEWED IN THE LIGHT OF EXPERIENCE OF THE ORDINANCE, THE ACTING FINANCIAL SECRETARY, THE HON DAVID NENDICK, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

WINDING UP DEBATE ON THE SECOND READING OF THE SECURITIES (DISCLOSURE OF INTERESTS) (AMENDMENT) BILL 1990, MR NENDICK POINTED OUT THAT THE FINANCIAL SECRETARY HAD SAID IN THE COURSE OF DEBATE DURING THE PASSAGE OF THE SECURITIES (DISCLOSURE OF INTERESTS) BILL IN JULY 1988 THAT THE PRESENT PROVISIONS WERE CONSIDERED AN APPROPRIATE STARTING POINT FOR HONG KONG.

"I CAN, HOWEVER, ASSURE MEMBERS THAT THESE PROVISIONS WILL BE REVIEWED IN THE LIGHT OF EXPERIENCE OF THE ORDINANCE IN OPERATION, AND HAVING REGARD TO THE PRACTICE OF OTHER JURISDICTIONS," MR NENDICK SAID.

THE RELEVANT PERIOD FOR NOTIFICATION OF INTERESTS UNDER SECTIONS 7, 28 AND 31, WAS CURRENTLY FIVE DAYS NEXT FOLLOWING THE DAY ON WHICH THE DUTY AROSE.

THIS APPEARED TO BE RATHER LONG TO THE AD HOC GROUP, WHICH WAS SET UP TO STUDY THE BILL, GIVEN THE ADVANCEMENT OF MODERN COMMUNICATIONS TECHNOLOGY AND RELEVANT PROVISIONS ELSEWHERE.

ANOTHER ISSUE OF CONCERN TO THE AD HOC GROUP RELATED то THE PROPOSED IMMUNITY FOR THE STOCK EXCHANGE.

"WE ARE PROPOSING THAT NO LIABILITY SHOULD BE INCURRED BY THE STOCK EXCHANGE OR ITS EMPLOYEES IN THEIR PERFORMANCE IN GOOD FAITH OF DUTIES UNDER THE SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE, HE NOTED.

H

THE PROPOSED IMMUNITY WAS CONSIDERED JUSTIFIED FOR TWO REASONS, MR NENDICK SAID.

"FIRST, AN EQUIVALENT IMMUNITY IS GRANTED TO THE SECURITIES AND FUTURES COMMISSION, THE COMMISSIONER OF BANKING AND THE INSURANCE AUTHORITY IN THE BONA FIDE PERFORMANCE OF THEIR DUTIES.

/"THE DUTY