XN000022-1991-04-17 — Page 47

WEDNESDAY, APRIL 17, 1991

45

BILL TO PLUG LOOPHOLE IN SECURITIES ORDINANCE INTRODUCED

THE SECURITIES (AMENDMENT) (NO. 2) BILL SEEKS TO CURB THE ACTIVITIES OF RUNNERS AND UNREGISTERED DEALERS IN SECURITIES BY BRINGING THEM UNDER THE REGULATORY CONTROL OF THE SECURITIES AND FUTURES COMMISSION.

THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID THIS WHEN MOVING THE SECOND READING OF THE BILL IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THERE WAS, AT PRESENT, A LOOPHOLE IN THE SECURITIES ORDINANCE WHICH ALLOWED UNREGISTERED INTERMEDIARIES TO HANDLE INVESTORS' MONEY AND SECURITIES, SIR PIERS NOTED.

"THE BILL SEEKS TO PLUG THIS LOOPHOLE BY PROVIDING THAT A PERSON WHO ACTS FOR REMUNERATION AS AN INTERMEDIARY BETWEEN AN INVESTOR AND A REGISTERED DEALER IS REQUIRED TO BE REGISTERED WITH THE SECURITIES AND FUTURES COMMISSION,

71

"THROUGH THE REGISTRATION SYSTEM, THE COMMISSION CAN ACCESS AND MONITOR WHETHER SUCH INTERMEDIARIES ARE FIT AND PROPER, HE ADDED.

DEBATE ON THE BILL WAS ADJOURNED.

BILL TO EFFECT TAX CONCESSIONS IN STAMP DUTY

THE HON SIR

LEGISLATIVE THE STAMP DUTY (AMENDMENT) BILL 1991 SEEKS TO GIVE

IN EFFECT TO THE TAXATION CONCESSIONS PROPOSED

THIS YEAR'S BUDGET, THE FINANCIAL SECRETARY,

SAID JACOBS,

IN THE

LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

PIERS

MOVING THE SECOND READING OF THE BILL, SIR PIERS SAID THE

REDUCTION TAXATION CONCESSIONS INCLUDED A

IN THE OVERALL CONTRACT OF REGISTERED NOTE DUTY FROM 0.6 PER CENT TO 0.5 PER CENT, EXEMPTION DEBT INSTRUMENTS FROM STAMP DUTY AND RELIEF OF CORPORATE DUTY ON STOCK

RESTRUCTURING OF THEIR INTRA-GROUP SHAREHOLDINGS.

TRANSFERS UPON

GROUPS FROM

THE EXISTING

INTRA-GROUP

EXEMPTION PROPERTY

AS "THIS RELIEF IS ON THE SAME BASIS FROM ASSIGNMENT DUTY UPON THE REORGANISATION OF HOLDINGS.

RELIEF "TO GUARD AGAINST ABUSE OF THE

AFFORDED ΤΟ CORPORATE DATE GROUPS, COMPANIES MUST REMAIN ASSOCIATED FOR TWO YEARS AFTER THE OF THE TRANSFER OF THE PROPERTY OR SHARES," HE SAID.

OF

TO THE FINANCIAL SECRETARY SAID THE COST

GENERAL REVENUE THESE PROPOSALS WAS ESTIMATED TO ВЕ APPROXIMATELY

IMPLEMENTING $501 MILLION IN THE CURRENT FINANCIAL YEAR.

"THERE ARE NO STAFFING IMPLICATIONS,

DRRATE ON TAP BIL. WAS ADJOURNED.

HE ADDED.

/46