TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 105

Annex E

(a) the proposed

should

include Exchanges and

strengthen the industry and

Advisory Committee (AC)

representatives of both any Clearing Houses to communication between the the regulatory authority

(para. 9.53 of the SRC Report);

(b) the proposed

non-Exchange

AC should be chaired by a member instead Of the Chairman of the new regulatory authority

(para. 9.51); and

(c) the Board of the new regulatory authority should have at least five non-executive directors to ensure that the full-time executive members will not constitute a majority (para. 9.38).

Securities Commission

4.

of

The Securities Commission supported the principle an independent regulatory authority, provided that there were satisfactory checks and balances. In particular, it considered that

(a) the Chairman of the new authority should not chair the AC, though he should be an ex officio member of the latter (para. 9.51);

(b) the non-executive directors of the Board of the new authority should not outnumber the executive directors (para. 9.38);

(c) policy decisions by the new authority the public on a

should be released

to

timely basis;

(d) provisions.

should

administrative appeal

be made

for against the new authority's decisions (para. 9.29 to 94);

and

(e) the new authority should be titled the

"Securities and Futures Commission".

I

2

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