XN000022-1990-07-18 — Page 5

WEDNESDAY, JULY 18, 1990

ليا

3

SECOND READING OF SECURITIES AND

FUTURES COMMISSION (AMENDMENT) BILL

BILL, WHICH

REQUIREMENTS

AND REGISTERED

THE SECURITIES AND FUTURES COMMISSION (AMENDMENT) AIMS TO ENABLE THE COMMISSION TO WAIVE OR MODIFY CERTAIN IN RESPECT OF PERSONS APPLYING TO BE REGISTERED PERSONS UNDER THE SECURITIES AND FUTURES COMMISSION SECURITIES ORDINANCE AND THE COMMODITIES TRADING ORDINANCE, WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

ORDINANCE, THE

MOVING THE SECOND READING OF THE BILL, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID: WE BELIEVE THE BILL WILL BE OF ASSISTANCE то MARKET INTERMEDIARIES, ESPECIALLY THOSE WHO HAVR ENCOUNTERED DIFFICULTIES IN COMPLYING WITH THE RELEVANT REQUIREMENTS.

"I SHOULD ADD, HOWEVER, THAT THE PROPOSED DISCRETION IS NOT

UNFETTERED"

·

SIR PIERS POINTED OUT THAT THE COMMISSION WOULD ONLY BE ABLE TO EXERCISE ITS DISCRETION IF COMPLIANCE WITH THE REQUIREMENTS CREATED AN UNDUR BURDEN FOR THE PERSON CONCERNED, AND, PROVIDED THAT WAIVER OR MODIFICATION OF THE REQUIREMENTS DID NOT RESULT IN UNDUE RISK TO THE INVESTING PUBLIC.

HE SAID DURING THE PASSAGE OF THE SECURITIES AND FUTURES COMMISSION BILL EARLY LAST YEAR, HE HAD STRESSED THE NEED TO STRIKE A BALANCE BETWEEN CONTROLS DESIGNED TO MAINTAIN MARKET INTEGRITY AND FREEDOM TO ENCOURAGE MARKETS TO GROW AND INNOVATE.

THE ENACTMENT OF THE PRINCIPAL ORDINANCE REPRESENTED A FIRST IMPORTANT PHASE OF A COMPREHENSIVE REVIEW OF SECURITIES LEGISLATION IN HONG KONG.

BUT

HE SAID THE SECURITIES AND FUTURES COMMISSION, SINCE ITS ESTABLISHMENT ON MAY 1 LAST YEAR HAD BEEN CONTINUING THE REVIEW PROCESS.

"IN REVIEWING THE SYSTEM OF REGISTRATION OF MARKET INTERMEDIARIES, THE COMMISSION HAS FOUND THAT CERTAIN STATUTORY REQUIREMENTS IMPOSED ON MARKET INTERMEDIARIES GIVE RISE то PRACTICAL DIFFICULTIES, NOT ONLY FOR SUCH INTERMEDIARIES BUT ALSO FOR THE COMMISSION.

"TO AVOID UNNECESSARY RIGIDITY IN THE WAY THE COMMISSION PERFORMS ITS FUNCTIONS, WE CONSIDERED IT ESSENTIAL THAT THE COMMISSION BE ENABLED TO WAIVE OR MODIFY THESE REQUIREMENTS IN RESPONSE TO MARKET NEEDS AND DEVELOPMENTS," SIR PIERS SAID.

/THE STATUTORY