TNAG-1836-FCO40-2611-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1989 — Page 75

CONFIDENTIAL

For information

on 25 July 1989

Hre B

011 12.

NOTE FOR EXECUTIVE COUNCIL

XCCI (89)55 23

Copy No.

THE SECURITIES REVIEW COMMITTEE REPORT

PAPER NO. 12

SITUATION REPORT ON IMPLEMENTATION OF THE SECURITIES REVIEW COMMITTEE RECOMMENDATIONS

34

Mr Holroyd

PA.

2877

INTRODUCTION

This memorandum informs Members of the latest progress on the

the implementation of

principal recommendations of the Securities Review Committee (SRC).

BACKGROUND

2

On 31 May 1988, Members were informed through memorandum XCC (88) 78 that the Administration had accepted the thrust of the SRC recommendations. Since then, in close consultation with concerned parties, we have accorded top priority to the implement at ion of the major recommendations identified in the SRC Report. recommendations include

(a)

autonomous

the setting up of an statutory regulatory authority outside the civil service, the Securities and Futures Commission (SFC);

These

(b)

the reconstitution of the Stock Exchange of Hong Kong (SEHK), in particular, its governing body;

(c)

the reconstitution of the Hong Kong Futures Exchange (HKFE);

(d)

the strengthening of the risk-management structure of the HKFE; and

(e)

the establishment of a central clearing and depository system and an extension of the settlement period for

stock

transactions.

Establishment of the SFC

3

The SFC was formally established on 1 May 1989, in line with the advice given by Members when considering memorandum XCC (88) 100,

on 12 July 1988

relating (88)100,

CONFIDENTIAL

to the

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