XN000022-1994-01-26 — Page 18

WEDNESDAY, JANUARY 26, 1994

UNDER THE BILL, THE EXISTING GRADUATED SCALE OF FINES OF $10,000 FOR DEFICIENCIES ON THE FIRST OCCASION, $20,000 ON THE SECOND AND $50,000 ON THE THIRD AND SUBSEQUENT OCCASIONS, WOULD BE RETAINED BUT MULTIPLIED BY THE NUMBER OF ROUTES ON WHICH DEFICIENCIES WERE

FOUND.

PENALTIES WOULD REMAIN ON RECORD FOR A FIVE-YEAR PERIOD FROM THE DATE OF IMPOSITION TO DETERMINE WHAT THE LEVEL OF FINES FOR FUTURE OFFENCES SHOULD BE, HE SAID.

THE BILL ALSO SEEKS TO EXCLUDE FINANCIAL PENALTIES FROM BEING DEEMED PART OF OPERATING EXPENSES OF A BUS OPERATOR.

SUCH SAID.

"THIS IS ESSENTIAL TO ENSURE THAT THE OPERATOR DOES NOT PASS PENALTIES ON TO BUS PASSENGERS IN THE FORM OF HIGHER FARES, HE

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THE BILL ALSO PROVIDES FOR THE DELEGATION OF THE POWERS TO MAKE REGULATIONS PERTAINING TO BUS OPERATORS SUCH AS THE DESIGNATION OF BUS STOPS AND THE CONDUCT OF BUS DRIVERS FROM THE GOVERNOR-IN-COUNCIL THE SECRETARY FOR TRANSPORT.

TO

DEBATE ON THE BILL WAS ADJOURNED.

INSIDER DEALING LAW TO BE IMPROVED

* * *

PROPOSING A BILL

TO REMOVE A LOOPHOLE DEALING CAN BE CONDUCTED THROUGH THE TRADING DERIVATIVE PRODUCTS WITHOUT BEING CAUGHT WAS LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

UNDER WHICH OF THIRD-PARTY-ISSUED

INTRODUCED INTO

INSIDER

THE

MOVING

DEALING)

MR ENSURE THAT THE CIRCUMVENT

THE SECOND READING OF THE SECURITIES (INSIDER (AMENDMENT) BILL 1994,

THE SECRETARY FOR FINANCIAL SERVICES, MICHAEL CARTLAND, SAID THE AMENDMENTS WERE NECESSARY TO THE BURGEONING DERIVATIVE MARKETS WERE NOT USED ΤΟ

REGULATORY FRAMEWORK.

"IT WILL ALSO HELP TO ENSURE THE SUCCESS OF THE MARKET FOR STOCK OPTIONS WHICH THE STOCK EXCHANGE INTENDS TO INTRODUCE LATER THIS YEAR, HE SAID.

1

THIS IS BECAUSE INVESTORS WILL KNOW THAT INSIDER DEALING LEGISLATION COMPARABLE WITH INTERNATIONAL STANDARDS IS IN

HE

EXPLAINED.

PLACE,

MR CARTLAND SAID RECENT YEARS HAD SEEN AN INCREASING NUMBER DERIVATIVE PRODUCTS IN RESPECT OF LOCALLY LISTED SECURITIES.

OF

MANY OF THESE PRODUCTS ARE ISSUED BY A PARTY UNRELATED TO CORPORATION WHOSE SHARES FORM THE UNDERLYING SECURITIES.

THE

SOME OF THE PRODUCTS ARE NOT LISTED ON THE STOCK EXCHANGE HONG KONG.

/HE SAID

IN