XN000022-1994-10-26 — Page 80

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WEDNESDAY, OCTOBER 26, 1994

ELSEWHERE IN THE WORLD, THE LEGISLATION IN MAJOR INTERNATIONAL MARKETS ALREADY ALLOWS THEIR REGULATORS ΤΟ PROVIDE INVESTIGATORY ASSISTANCE TO THEIR OVERSEAS COUNTERPARTS WHO ARE ABLE TO RECIPROCATE, AND HONG KONG IS LIKELY TO LOSE THE BENEFIT OF CO-OPERATION FROM SUCH JURISDICTIONS IF OUR REGULATORS ARE NOT LIKEWISE EMPOWERED TO CONSIDER THEIR REQUESTS FOR ASSISTANCE. THIS BILL WİLL AMEND THE SECURITIES AND FUTURES COMMISSION ORDINANCE TO ENABLE SUCH ASSISTANCE ΤΟ BE GIVEN.

OF

BE ON

IN AMENDING THE LEGISLATION, THE ADMINISTRATION IS MINDFUL THE NEED TO CIRCUMSCRIBE THE NEW PROVISIONS. FIRSTLY, IT WILL NOT AN OBLIGATION FOR THE SFC TO PROVIDE ASSISTANCE AUTOMATICALLY REQUEST. THE COMMISSION WILL HAVE TO CONSIDER INDIVIDUAL CASES ON THEIR OWN MERITS AND AGAINST THE BACKGROUND OF CERTAIN CRITERIA, INCLUDING REQUIREMENTS THAT THE FUNCTIONS OF THE REQUESTING PARTY SHOULD ЗЕ SIMILAR TO THOSE OF THE HONG KONG REGULATORY AUTHORITY, THAT'S TO SAY THE SFC, AND THAT THE REQUESTING PARTY SHOULD BE BOUND BY ADEQUATE SECRECY PROVISIONS. IN ADDITION, THE CASES SHOULD INVOLVE CIRCUMSTANCES THAT WOULD MEET THRESHOLDS SIMILAR TO THOSE REQUIRED FOR THE SFC TO INVOKE ITS POWERS FOR ITS OWN INVESTIGATIONS LOCALLY THE UNDERLYING PRINCIPLE IS THAT IT MUST BE IN THE INTERESTS OF THE PUBLIC OR THE INVESTING PUBLIC LOCALLY FOR THE SFC TO PROVIDE THE ASSISTANCE. WHEN CONSIDERING INDIVIDUAL REQUESTS, THE SP WILL ALSO TAKE INTO ACCOUNT THE ABILITY OF THE RFQUESTING PARTY TO RECIPROCATE AND TO REIMBURSE THE COSTS LIKELY TO BE INCURRED.

■

AS A FURTHER MEASURE OF PROTECTION, THE BILL ALSO PROVIDES THAT THE SFC SHALL NOT PROVIDE TO OVERSEAS REGULATORS EVIDENCE OF SELF- INCRIMINATING ANSWERS GIVEN BY PERSONS INVESTIGATED WHERE SUCH EVIDENCE MAY BE USED IN CRIMINAL PROCEEDINGS IN THE OVERSEAS JURISDICTION.

EXISTING

THE PROPOSED AMENDMENTS WILL FILL A GAP IN THE REGULATORY FRAMEWORK AND ENSURE THAT THE REGULATORY REGIME IN HONG KONG REMAINS CONSISTENT WITH THOSE IN OTHER MAJOR INTERNATIONAL MARKETS. IN PRACTICAL TERMS, THE ABILITY OF REGULATORS TO HELP OTHER IN THIS WAY IS MUTUALLY BENEFICIAL. THE SFC HAS IN THE RECEIVED CONSIDERABLE ASSISTANCE FROM OVERSEAS AUTHORITIES AND IT CANNOT AFFORD TO LOSE THIS FACILITY IN FUTURE.

MR PRESIDENT, I BEG TO MOVE.

EACH PAST

LEVERAGED FOREIGN EXCHANGE TRADING BILL

FOLLOWING IS THE SPEECH BY THE SECRETARY FOR FINANCIAL, SERVICES, MR MICHAEL CARTLAND, WHEN HE MOVED THE SECOND READING OF THE LEVERAGED FOREIGN EXCHANGE TRADING (AMENDMENT) BILL 1994 IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY}:

MR PRESIDENT,

I MOVE THAT THE LEVERAGED FOREIGN EXCHANGE TRADING (AMENDMENT}) BILL 1994 BE READ A SECOND TIME.

/THE BILL

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