XN000022-1991-04-18 — Page 14

13

THURSDAY, APRIL 18, 1991

"THE BILL PROPOSES THEREFORE THAT THE SECURITIES AND FUTURES COMMISSION SHOPLA BE GIVEN A GENERAL POWER TO EXEMPT COMPANIES FROM SOME OR ALL OF THE PROVISIONS OF THE ORDINANCE.

гT

THIS DISCRETION WELL NEED TO BE EXERCISED IN THU: LIGHT OF GUIDELINES TO BE PUBLISHED BY THE COMMISSION AFTER CONSULTATION WITH

THE FINANCIAL SECRETARY.

"WE WILL ENSURE THAT THESE GUIDELINES REFLECT THE PROPER BALANCE BETWEEN THE NEED TO PROTECT LOCAL INVESTORS AND THE NEED TO ENCOURAGE PORRIGN ISSUERS TO LIST AND RAISE CAPITAL IN HONG KONG, THE SPOKESMAN SAID.

"I

TEK BILL

COUNCIL ON MAY 1.

IS SCHEDULED TO BE INTRODUCED INTO THE

LEGISLATIVE

BILL TO FACILITATE SPO'S 20 OPERATION WITH OTHER REGULATORS

THE SETRITIES AND FUTURES COMMISSION LAMENDMENT} BILL 1991 WHICH SEEKS TO FACILITATE THE COMMISSION'S CO-OPERATION WITH OTHER FINANCIAL MARKET REGULATORS WILL BE INTRODUCED. IN TO THE LEGISLATIVE COUNCIL ON JUNE 5.

+

חיד

"THE BILL AIMS TO RELAX

SECRECY REQUIREMENTS IN THE SECURITIES AND FUTURES COMMISSION (SEC) ORDINANCE WITHOUT PREJUDICING THE GENERAL CONFIDENTIALITY OF INFORMATION OBTAINED BY THE COMMISSION FOR REGULATORY PURPOSES, THE SP RFTARY FOR MONETARY APPAIRS, MR DAVED WFNDICK, SAID TODAY

OTHERSDAY).

UNDER THE SEC ORDENANCE

T

THE SH CAN ONLY DISCLOSE ENFORMATION TO OTHER REGULAPORS EF THIS IS DESTRAPEF OR EXPETYLENT IN THE INTEREST OF THE INVESTING PUBLIC

PUBLIC INTEREST, IT CANNOT DISCLOSE

CO OPERATION

INFORMATION TO OTHER REGULATORS FOR THE PERPOSES.

ASSISTANCE.

FOR HONG KONG

OR

SECURITIES

THIS HAS CREATED DIFFICULTIES COMPANIES CONDUCTING BUSINESS OVERSEAS AND HAMPERFD THE EFFECTIVE REGULATION OF FINANCIAL INSTITUTIONS IN HONG KONG.

וין

CO-OPERATE

THE BILL INCLUDES A NEW PUNCTION FOR THE SPO WITH AND ASSIST OTHER REGULATORS, BOTH DOMESTIC AND OVERSEAS.

1

IT ALLOWS THE SPC TO DISCLOSE INFORMATION TO OTHER REGULATORS IN ORDER TO ENABLE THEM TO PERFORM THEIR FUNCTIONS PROVIDED THEY ARE SUBJECT TO ADEQUATE SECRECY PROVISIONS AND PROVIDED THIS IS NOT CONTRARY TO THE INTEREST OF THE INVESTING PUBLIC OR

To THE PUBLIC

INTEREST.

REFINEMENTS REMOVE CERTAIN

TO

THE OPPORTUNITY IS ALSO TAKEN TO INCLUDE A FEW THE EXISTING SECRECY REQUIREMENTS IN AN ATTEMPT TO OPERATIONAL DIFFICULTIES BEING EXPERIENCED BY THE SFC. THEY ARE:

/* SECRECY PROVISIONS