TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 56

THE COMMISSIONS AND THE OFFICE OF THE COMMISSIONER

(Chapter Nine of the Report)

The SRC recommends that

1.

2.

3.

4.

5.

6.

7.

a new statutory body should be established to assume the role of the existing three regulatory bodies (the Securities Commission, Commodities Trading Commission and OCS). It should be outside the civil service; and staffed at all levels by full-time professional staff. (para. 9.35)

the new SC should be governed by a small board, preferably with seven members: a chairman, deputy chairman, two other full-time directors and three non-executive directors. (para. 9.38)

an Advisory Committee should be appointed to advise the SC on matters of policy and market development.

(para. 9.50)

the Chairman and Deputy Chairman of the new SC should sit on the Advisory Committee as ex officio members and the new SC Chairman should also chair the Advisory Committee. (para. 9.51)

the Advisory Committee should be eight to 12 strong, with six to ten outside members drawn from the securities industry and the professions. (para. 9.52)

representatives of the Exchanges and the clearing houses (whether staff or Council members) should not sit on the new SC board or on its Advisory Committee.

(para. 9.53)

for the new SC

(a)

(b)

(c)

(d)

-

the Governor should appoint the Chairman and other directors of the new SC board and should have the power to dismiss all or some of them;

should be able to give the new SC directions;

the new SC should be obliged to present an annual report and statement of account to the Governor who would lay them before the Legislative Council; and

the new SC's Advisory Committee should be appointed by the new SC with the approval of

the Governor.

(para. 9.55)

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