XN000022-1995-04-26 — Page 21

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Securities (Insider Dealing)(Amendment) Bill 1995

Following is the speech by the acting Secretary for Financial Services, Mrs Lessie Wei, in moving the second reading of the Securities (Insider Dealing) (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move the second reading of the Securities (Insider Dealing) (Amendment) Bill 1995.

The Bill has two main objectives. First, it seeks to amend the Securities (Insider Dealing) Ordinance to make it possible for an additional division or divisions of the Insider Dealing Tribunal to be set up so that two or more insider dealing cases can be heard at the same time. Secondly, it makes other amendments to the Ordinance to improve the operation of the Tribunal.

Investigations by the Securities and Futures Commission into suspected insider dealing are likely to generate a caseload that one tribunal will not be able to deal with alone without long delay. However, the Ordinance at present does not permit more than one tribunal, each with a different chairman and members, to operate at the same time. That insider dealing cases cannot be dealt with expeditiously may reduce the deterrent effect of the tribunal process and give the false impression that the Government does not consider insider dealing a serious matter.

Insider dealing undermines confidence in the fairness and the integrity of the market. The ability of the Tribunal to hear cases without undue delay is an important element in protecting the investing public and maintaining market integrity.

To facilitate the setting up of an additional division or divisions of the Tribunal, it is also proposed that in addition to High Court judges, former High Court judges should be eligible for appointment as chairmen of divisions of the Tribunal. This is to widen the pool of candidates who will be eligible for appointment as chairmen.

Other amendments to the Ordinance are proposed to improve the operation of the Tribunal. Of these amendments, the more significant ones are the introduction of new provisions to empower the Tribunal to award costs to persons attending inquiries of the Tribunal and to provide certain immunity to witnesses from subsequent criminal and civil proceedings in respect of evidence given at proceedings before the Tribunal.

End/Wednesday, April 26, 1995

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