XN000022-1991-11-06 — Page 23

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WEDNESDAY, NOVEMBER 6, 1991

HE ASSURED MEMBERS THAT IT WAS NOT THE INTENTION OF THE COMMISSION TO EXERCISE THOSE POWERS OTHER THAN IN EXCEPTIONAL CIRCUMSTANCES AND THAT IN THE VERY UNLIKELY EVENT THAT SFC WERE TO SEEK TO USE ITS POWERS ARBITRARILY OR OPPRESSIVELY, THERE WERE AMPLE CHECKS AND BALANCES BUILT INTO THE LEGISLATIVE FRAMEWORK то PREVENT ANY SUCH ABUSE.

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'MEMBERS OF THIS COUNCIL EXAMINED THESE CAREFULLY, AND INDEED SUPPLEMENTED THEM, IN THE COURSE OF THE PASSAGE OF THE LEGISLATION THROUGH THE CHAMBER, HE SAID.

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MR NENDICK POINTED OUT THAT POWERS SIMILAR TO THOSE AVAILABLE ΤΟ THE COMMISSION WERE AVAILABLE TO THE COMPARABLE REGULATORY BODIES IN OTHER CENTRES IN THE REGION SUCH AS MALAYSIA, SINGAPORE AND THAILAND AND WERE ALSO TO BE FOUND IN BOTH THE UNITED KINGDOM AND USA.

"SUCH POWERS ARE WIDELY CONSIDERED THE NECESSARY COMPLEMENT TO AN EFFECTIVE SELF-REGULATORY SYSTEM AND I FIRMLY BELIEVE THAT THEY ARE APPROPRIATE IN THE CASE OF HONG KONG," HE SAID.

ON A MEMBER'S VIEW THAT THE SFC SHOULD NOT UNNECESSARILY INVESTIGATE MATTERS RELATING TO THE SECURITIES MARKETS, LEAVING THAT INSTEAD TO THE MARKET BODIES THEMSELVES, MR NENDICK SAID IN THOSE FIELDS WHERE SUCH BODIES EXISTED THIS WAS INDEED THE PRESENT POSITION, WITH THE COMMISSION MAINLY CONFINING ITSELF TO A SUPERVISORY ROLE.

HOWEVER, HE SAID HE THOUGHT THAT IT WAS RIGHT AND PROPER THAT THE COMMISSION, IN COMMON WITH REGULATORS ELSEWHERE, SHOULD EXERCISE ITS OWN INVESTIGATORY POWERS WHERE THIS WAS APPROPRIATE AND NECESSARY.

REFERRING TO THE REFORM PACKAGE AGREED BETWEEN THE SFC AND THE STOCK EXCHANGE OF HONG KONG FOR THE EXCHANGE WHICH HAD BEEN ENDORSED BY THE GOVERNOR IN COUNCIL, MR NENDICK SAID THE REFORMS WERE DESIGNED TO PRODUCE A MORE REPRESENTATIVE MANAGEMENT STRUCTURE FOR THE EXCHANGE AND ENSURE THAT THE INTERESTS OF ALL WHO USED OUR MARKET WERE TAKEN INTO ACCOUNT IN ITS DAY TO DAY AFFAIRS AND IN PLANNING ITS FUTURE STRATEGY.

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WITH THE REFORMS IN PLACE, THE STRUCTURE OF HONG KONG'S MARKET WOULD BEAR FAVOURABLE COMPARISON WITH THAT IN OTHER MAJOR CENTRES, HE SAID.

TRIBUTE ΤΟ SIR HONG KONG,

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THE SECRETARY TOOK THE OPPORTUNITY TO PAY Q.W. LEE WHO, AS CHAIRMAN OF THE STOCK EXCHANGE OF WORKED TIRELESSLY DURING HIS PERIOD OF LEADERSHIP то RESTORE REPUTATION AND STANDING OF THE STOCK EXCHANGE FOLLOWING THE EVENTS OCTOBER 1987.

"WHEN HE RETIRES AT THE END OF THIS YEAR HE CAN DO SO WITH SATISFACTION OF A JOB WELL DONE.

"HIS CONTRIBUTION ΤΟ THE SECURITIES INDUSTRIES INTERNATIONALLY ACKNOWLEDGED IN THE COURSE OF THE CONFERENCE OF FEDERATION INTERNATIONALE DES BOURSES DE VALEURS HELD IN HONG LAST MONTH, MR NENDICK SAID.

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