XN000022-1995-10-23 — Page 43

41

MOU signed between HKMA and SFC

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) announced today (Monday) the signing of a Memorandum of Understanding (MOU) which aims at strengthening co-operation between the two authorities.

The MOU sets out the framework for co-ordination of supervision of financial institutions or groups in which both authorities have an interest. The authorities have agreed to use their best endeavours to ensure that there will be no gaps in regulation and to minimise unnecessary duplication of effort in their supervision.

"The trend for financial institutions and groups to broaden the range of their business activities has increased the need for the various financial regulators to work closely together. The signing of this MOU will formalise and strengthen the already good co-operation which exists between the HKMA and the SFC. Such supervisory co-operation will promote the interests of Hong Kong as an international financial centre," said the Chief Executive of the HKMA, Mr Joseph Yam.

"I am confident that the signing of the MOU between us will enable the two regulatory authorities to work even closer together to enhance the protection of investors and to preserve market integrity," said the Chairman of the SFC, Mr Anthony Neoh.

The banking and deposit-taking business of authorised institutions is governed by the Banking Ordinance and regulated by the HKMA, while dealing in securities and the giving of investment advice are governed by the Securities Ordinance and related Ordinances and regulated by the SFC. Institutions that engage in both activities are subject to the dual supervision of the two authorities.