RESTRICTED
147306
MDLIAN 6069
DURING THE PAST FEW YEARS AND THAT REFORMS AND CHANGES ARE NOW TIMELY
(D) WHILE THE SRC CONSULTED WIDELY, BOTH LOCALLY AND OVERSEAS, BEFORE FORMULATING THEIR RECOMMENDATIONS, THE GENERAL PUBLIC IN HONG KONG STILL HAS AN OPPORTUNITY TO EXPRESS THEIR VIEWS ON THE REPORT BEFORE 4 JULY 1988. THESE VIEWS WILL BE CAREFULLY CONSIDERED BY A SPECIAL TEAM WHEN IT COMES TO DRAWING UP SPECIFIC PROPOSALS FOR THE
CONSIDERATION OF THE EXECUTIVE COUNCIL.
(E) WHILE EARLY REFORMS ARE CLEARLY NECESSARY AND DESIRABLE, IT MUST BE REMEMBERED THAT THE ISSUES INVOLVED ARE NUMEROUS AND COMPLEX. IT IS THEREFORE NECESSARY TO EXAMINE THE ARGUMENTS AND POSSIBLE OPTIONS CAREFULLY INSTEAD OF RUSHING TO ILL-CONSIDERED CONCLUSIONS. NO FINAL DECISION ON THE RECOMMENDATIONS HAS YET BEEN TAKEN.
·
(F) THE SRC MADE ITS RECOMMENDATIONS ON THE BASIS THAT IT SHOULD ENCOURAGE SELF-REGULATION OF MARKETS, ENSURE PROPER SAFEGUARDS FOR INVESTORS, AND PRESERVE FLEXIBILITY TO CATER FOR RAPID DEVELOPMENTS IN THE SECURITIES INDUSTRY THE SRC WAS ''IN FAVOUR OF BUILDING ON EXISTING SYSTEMS, AS THE SUCCESS OF HONG KONG'S FINANCIAL SERVICES MARKET DEPENDS LARGELY ON THE HEALTHY WORKING OF THE FREE ENTERPRISE SYSTEM WHICH HAS DEMONSTRATED A DYNAMIC CAPACITY FOR PROMOTING INNOVATION AND GROWTH THE GOVERNMENT WILL CONTINUE TO ENCOURAGE SELF-REGULATION IN THE SECURITIES INDUSTRY AND WILL TRY TO PROVIDE THE ADEQUATE CHECKS AND BALANCES.
(G) THE EXISTING REGULATORY WATCHDOGS, THE SC, THE CTC AND THE OCS, HAVE ALREADY PERFORMED FAIRLY WEEL IN VERY TRYING CIRCUMSTANCES • DURING THE PAST FEW YEARS. THEIR MAIN PROBLEM IS THAT THE EXPERTISE AND RESOURCES AVAILABLE ARE NOT SUFFICENT TO COPE WITH THE RECENT
R AP ID DEVELOPMENTS IN THE MARKETS.
(H) A SIGNIFICANT NUMBER OF THE RECOMMENDATIONS SHOULD BE IMPLEMENTED BY THE TWO EXCHANGES, RATHER THAN BY THE GOVERNMENT. DISCUSSION WITH THEM, AS WELL AS OTHER CONCERNED PARTIES IN THE SECURITIES AND FINANCIAL SECTORS, IS ALREADY UNDERWAY.
(I) AFTER THE EXECUTIVE COUNCIL HAS APPROVED THE SPECIFIC PROPOSALS SUBMITTED BY THE SRC SPECIAL TEAM, APPROPRIATE BILLS WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL IF NECESSARY. IT WILL TAKE AROUND TWO YEARS, ON CURRENT ESTIMATES, TO IMPLEMENT THE BULK OF THE RECOMMENDATIONS ALTHOUGH SOME FUNDAMENTAL CHANGES MAY HAVE PRIORITY OVER THE OTHERS.
PAGE
RESTRICTED
4
No comments yet.
Private notes are available after approval.