TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 106

Annex E

5.

The Commission expressed grave concern that the lack of resources in the OCS might create major problems before the new authority came into operation. It requested the Government to secure early implementation of the SRC recommendations on the new authority and in the meantime, urged the Government to appoint outside professionals to assist the OCS in implementing the Report and in reviewing the legislation.

Commodities Trading Commission

6.

Trading

Commodities The

Commission

shared the

views of the SC expressed in sub-paragraphs 4 (a), (c) and

However, it was (d) above.

divided as to whether the the Board of the new authority

non-executive

on directors

should form a majority.

Hong Kong Stockbrokers Association Ltd.

7. the

The Hong Kong

Stockbrokers Association supports establishment of а new statutory body to assume the role of the three existing regulatory bodies. It, however, does not have any strong view as to whether this new body should be outside the civil service. It doubts whether the dual role of the Chairman of the new body and its AC can be clearly identified. It expresses serious concerns about the costs of the new body, and feels strongly that the new body should be funded by the Government and the industry should be consulted on any increase in levy or charges.

The Hong Kong Deposit-taking Companies Association

8.

The Hong Kong Deposit-taking Companies Association supports the setting up of a regulatory authority along the lines recommended by the SRC and suggests that there should Government representation on both the SFC Board and its

be AC.

Sun Hung Kai Securities Limited

9.

The

company

supports

the

non-executive a

establishment

of an

independent regulatory authority, and proposes that the SFC Board should have

majority and its AC

should be chaired by an independent member.

3