XN000022-1996-03-13 — Page 22

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Securities and Futures Commission Bill

Following is a speech by the Secretary for Financial Services, Mr Rafael Hui, in moving the second reading of the Securities and Futures Commission (Amendment) Bill 1996 in Legislative Council today (Wednesday):

Mr President,

I move the second reading of the Securities and Futures Commission (Amendment) Bill 1996.

The Bill seeks to amend the Securities and Futures Commission Ordinance so that the consent of the SFC is required prior to the sale or issue of substantial holdings in shares in a company registered with the SFC as a dealer in securities or commodities or investment adviser.

The proposed amendments to the Securities and Futures Commission Ordinance stems from the same considerations as in the case of similar amendments to the Leveraged Foreign Exchange Trading Ordinance as contained in the Bill which I moved a moment ago. In other words, currently there are no provisions in the Securities and Futures Commission Ordinance to prevent a person who is not fit and proper from acquiring shares in, and thereby gaining control of, a company registered as a dealer or investment adviser. The Bill seeks to close this loophole.

Thank you, Mr President.

End

Bankruptcy (Amendment) Bill 1996

Following is a speech by the Secretary for Financial Services, Mr Rafael Hui, in moving the second reading of the Bankruptcy (Amendment) Bill 1996 in the Legislative Council today (Wednesday):

Mr President,

I move the second reading of the Bankruptcy (Amendment) Bill 1996.