TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 58

THE REGULATION OF INTERMEDIARIES

(Chapter Ten of the Report)

The SRC recommends that

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the new SC should be empowered to revoke an authorisa- tion which is not being used. (para. 10.19)

Hong Kong should move from a system of annual registra- tion to a system of continous licensing but that an annual fee should continued to be levied. (para. 10.25)

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licences should be granted to the business entity company, sole trader or partnership as this is the financial unit with whom other dealers and investors trade. (para. 10.26)

there should not be a programme of relicensing intermediaries upon the introduction of an upgraded licensing system. (para. 10.28)

exempt status should be abolished and that, to the extent a firm conducts a securities business, it should be licensed, required to meet the appropriate standards on an on-going basis and supervised to ensure it meets those requirements. (para. 10.31)

where a licensed securities business is also authorised and supervised by another body, provisions should exist for the new SC to be able to rely on that other body (such as the Commissioner of Banking or Insurance Officer) for the supervision and regulation of the firm's financial adequacy and soundness. (para. 10.35)

in order for the new SC to grant a licence to a securities business, it should have to be satisfied that all directors, controllers and managers are fit and proper persons to hold their particular positions. (para. 10.36)

separate registration of directors, controllers and managers of investment dealers and advisers should not be required. (para 10.38)

the system of requiring trading and advisory representatives to obtain authorisation should continue. (para. 10.39)

the new SC and the Administration should review whether separate licences are necessary for dealers and advisers (or for any other groups). (para. 10.41)

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