TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 107

Annex E

Schroders Asia and Schroders Securities

10. .

The company

is in full support of the SRC recommendations and urges for their early implementation.

County NatWest Securities Asia Limited

11.

The company gives its general support for the SRC proposals and urges for their early implementation.

Mr Tou-ming Hendon LAM (individual)

12.

Mr Lam is against the establishment of a new statutory authority outside the civil service because he thinks that the British Administration should continue to assume the regulatory role in the run up to 1997.

Summary of Press Comments

13.

The press

in general welcomes the proposed establishment of a SFC. Major comments on this subject are summarised as follows

to

(a) the SFC should be accountable

the Government and should therefore not be totally independent of the Government;

(b) the SFC should have reserve powers to interfere with the Exchanges should they fall down on their jobs;

(c) the

SFC should release its meeting minutes to the public on a regular basis;

(d) the AC should not be chaired by the SFC

Chairman;

(e) establishing the SFC outside the civil service would help professionalise the regulatory body and exempt it from localization rules;

(f) the detachment of the SFC from Government would insulate Government from day-to-day market crises;

(g) the Board of

the SFC should not have an

executive majority;

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