TNAG-1854-FCO40-2629-Legislative-Council-of-Hong-Kong-memoranda-and-minutes-of-me-1989 — Page 245

HONG KONG LEGISLATIVE

COUNCIL

18 January 1989 香港立法局————————————一九八九年一月十八日

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accordance with the well established policy of users paying the full cost for the services rendered.

Sir, I beg to move.

Question proposed, put and agreed to.

First Reading of Bill

SECURITIES AND FUTURES COMMISSION BILL 1989

Bill read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).

Second Reading of Bill

SECURITIES AND FUTURES COMMISSION BILL 1989

THE FINANCIAL SECRETARY moved the Second Reading of: "A Bill to establish the Securities and Futures Commission and to amend the law relating to dealing in securities and trading in commodity futures contracts; and to provide for connected or incidental matters.'

"

He said: Sir, I move that the Securities and Futures Commission Bill 1989 be read the Second time.

Following the October market crash in 1987, you, Sir, appointed a Securities Review Committee, to examine the operation and regulation of the securities and futures industries in Hong Kong. The committee published its report last June. It was well received in Hong Kong and in other major financial centres. The Government accepted in general the recommendations of the report and since then, prority has been given to implementing these recommendations.

Within one year of the crash, the Stock Exchange had reconstituted its governing body and strengthened its management structure. The Futures Exchange has prepared and is seeking to introduce a revised constitution and new rules for strengthening its risk management system. Work has also started on a central clearing and depository system with a view to bringing it into operation in 1990. I am most grateful to those who have been directly or indirectly responsible for the remarkable progress we have made.