TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 99

Annex B

Extract from the Report of the Securities Review Committee

An Independent Regulatory Body outside the Civil Service

effective watchdog cannot be

First and of Government.

9.31.

We believe that an

built within the constraints foremost, because of the funding and staffing problems

described earlier.

9.32.

Second,

we

believe

the

job

of

the

heading regulatory body is likely to be of limited attraction to anyone outside the civil service so long as it remains part

of Government.

This applies even more strongly to the regular staff members who do not have the prestige accruing to a senior public post. It is essential that skilled and

are recruited, experienced professional

significant numbers.

staff level

in

9.33.

regulator

Third,

to

we consider

it

inefficient

for the

Government

be answerable

Secretariat,

on

a day-to-day basis to the which is not sufficiently involved

with the markets to be expert in this field.

Furthermore,

9.34.

the civil

reserve.

The

this by

we

believe that this separation from service will enable Government to hold itself in current arrangements were intended to achieve vesting powers in the two independent Commissions.

was this

increasingly undermined by the civil servant answerable directly to

Unfortunately,

Commissioner

Government.

a being