XN000022-1990-07-03 — Page 3

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TUESDAY, JULY 3, 1990

FOLLOWING THE COMMITTER'S RECOMMENDATIONS,

HONG KONG'S STOCK

AND FUTURES EXCHANGES HAD NOW FULLY RECONSTITUTED THEMSELVES, COMBINING A MIX OF LOCAL AND INTERNATIONAL INTERESTS. HONG KONG HAD ESTABLISHED A NEW REGULATORY BODY, THE SECURITIES AND FUTURES COMMISSION, TO OVERSEE MARKET OPERATIONS.

SIR DAVID STRESSED THAT HONG KONG WOULD NOT BECOME OVER-REGULATED. "IT IS CRUCIAL TO ACHIEVE THE RIGHT MIXTURE OF REGULATION AND FREE MARKET FORCES.

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"I BELIEVE WE HAVE THAT BALANCE ABOUT RIGHT, HE SAID.

PROPOSED WAIVER OF STATUTORY REQUIREMENTS ON REGISTERED PERSONS

FUTURES

A BILL WHICH SEEKS TO ENABLE THE SECURITIES AND COMMISSION (SFC) TO WAIVE OR MODIFY CERTAIN REQUIREMENTS ON PERSONS APPLYING TO BE REGISTERED AND REGISTERED PERSONS UNDER THE SFC ORDINANCE, SECURITIES ORDINANCE AND COMMODITIES TRADING ORDINANCE WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JULY 18.

EXPLAINING THE OBJECTIVE OF THE SECURITIES AND FUTURES COMMISSION (AMENDMENT) BILL 1990, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK SAID THAT CERTAIN STATUTORY REQUIREMENTS IMPOSED ON PERSONS APPLYING TO BE REGISTERED AND REGISTERED PERSONS GIVE RISE ΤΟ PRACTICAL DIFFICULTIES, NOT ONLY FOR SUCH PERSONS BUT ALSO FOR THE SFC.

"WE BELIEVE THAT THE PROPOSED POWER OF WAIVER AND MODIFICATION WILL ASSIST THE SFC IN AVOIDING HAVING TO PERFORM ITS FUNCTIONS WITH UNNECESSARY RIGIDITY, MR NENDICK SAID.

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THE PROPOSALS HAVE BEEN INITIATED BY THE SFC IN RESPONSE ΤΟ MARKET DEVELOPMENTS AND PRACTICAL EXPERIENCE.

"THEY WILL ALLOW GREATER FLEXIBILITY FOR THE REGISTERED PERSONS IN COMPLYING WITH THE RELEVANT STATUTORY REQUIREMENTS, HE ADDED.

IT IS EXPECTED THAT THE PROPOSAL WILL BE WELCOMED BY THE MARKET, ESPECIALLY BY THOSE REGISTERED PERSONS WHO HAVE ENCOUNTERED DIFFICULTIES IN COMPLYING WITH THE RELEVANT REQUIREMENTS.

'THE BILL PROPOSED THAT THE SFC SHOULD ONLY EXERCISE SUCH POWER IF COMPLIANCE WITH THE REQUIREMENTS WOULD CREATE UNDUE BURDEN FOR THE PERSON CONCERNED; AND WAIVING THE REQUIREMENTS WOULD NOT RESULT IN UNDUE RISK TO THE INVESTING PUBLIC," MR NENDICK SAID.

/THE BILL