TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 97

Annex A

Extract from the Report of the Securities Review Committee

Summary of SRC recommendations in respect of the new Securities and Futures Commission

Structure

Powers

(a) It should be a statutory body outside the

civil service (para. 9.35).

(b) It should be headed and staffed by full time regulators but to provide the necessary checks and balances, it should be governed by a small board, preferably with seven members

a Chairman, deputy Chairman, two other full-time directors and three non-executive directors (para. 9.38).

:

The

(c) It should have the benefit of an Advisory Committee comprising six to ten outside market experts and professionals to assist in the development of policies. Chairman and Deputy Chairman of the new SC should sit on the Advisory Committee as ex officio members and the SC Chairman should also chair the Advisory Committee (paras. 9.50-53).

(d) It should have a series

fulfil its

regulatory

Commission

of powers to such statutory lie with the There is a need for

functions and powers should itself.

the new SC's determinations to be subject to appeal (paras. 9.91-94).

(e) It should have extensive reserve powers to intervene in the business of the Exchanges if they fall down on their job (paras. 9.95-96).

(f) It should have the power to initiate investigations and to bring summary proceedings without compromising the Attorney General's constitutional position of ultimate responsibility for criminal prosecutions. It should have the power to appoint inspectors

to

carry

investigations (paras. 9.100-111).

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