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CONFIDENTIAL
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on 12 July 1988
15JUL
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MEMORANDUM FOR EXECUTIVE COUNCIL
Mr Mom
+PA
THE SECURITIES REVIEW COMMITTEE REPORT PAPER NO. 4 ESTABLISHMENT OF A
SECURITIES AND FUTURES COMMISSION
N 15/7
THE PROBLEM
The
Securities
Review Committee (SRC) has recommended, inter alia, replacing the existing Securities Commission (SC), the Commodities Trading Commission (CTC) and the Office of the Commissioner for Securities and Commodities Trading (OCS) with
A single independent statutory body. a decision
the broad principles in respect of the structure and funding of the new regulatory authority, and its relationship with the Government is now required.
on
establishment,
RECOMMENDATION AND ADVICE SOUGHT
2
(a)
(b)
(c)
(d)
It is recommended that -
legislation should be prepared as soon as possible for the establishment of a single statutory regulatory body outside the civil service to replace the SC, CTC and OCS (paragraph 5);
the new
new regulatory body should be called the Securities and Futures Commission (SFC)
(paragraph 6);
the terms and conditions of employment for the SFC staff should be determined as soon as possible and
and that
that detailed arrangements for the existing OCS staff worked out as a matter of urgency (paragraph 9);
the SFC should be governed by a small board to be appointed by the Governor with consideration being given at later stage to their being a majority of non-executive directors (paragraph 13);
(e) the
should
SFC Government-appointed
be supported by a
Advisory
Committee
chaired by the Chairman of SFC including six to ten market experts (paragraphs 14 - 16);
CONFIDENTIAL
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Page 90Page 91
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