TNAG-1858-FCO40-2633-Legislative-Council-of-Hong-Kong-memoranda-and-minutes-of-me-1989 — Page 186

HONG KONG LEGISLATIVE COUNCIL

19 July 1989

香港立法局

一九八九年七月十九日

73

(a) in subsections (1)(b) and (2)(b) -

(i) by adding "or wife" prior to "does not elect";

(ii) by repealing "or is not deemed to have elected to be personally assessed";

(b) by repealing subsection (3)(b) and substituting -

"(b) in the case of a husband and wife, not being a wife

living apart from her husband, the husband or wife is personally assessed under Part VII,".".

Question on the addition of the new clause proposed, put and agreed to.

PROTECTION OF INVESTORS (AMENDMENT) BILL 1989

Clauses 1 and 3 were agreed to.

Clauses 2, 4 and 5

FINANCIAL SECRETARY: Sir, I move that clauses 2, 4 and 5 be amended as set out under my name in the paper circulated to Members.

The main purpose of the Bill is to exempt advertisements relating to certificate of deposit and commercial paper issues from the need to obtain express authorization by the Securities and Futures Commission. Clause 4 inserts a new section 7A to impose a reporting requirement in respect of advertisements relating to such issues. It requires an issuer of such a capital market instrument or in the case of an overseas issuer, his authorized representative in Hong Kong, to submit to the Securities and Futures Commission within 10 days of the issue of an advertisement in respect of that instrument such information as the commission may require.

The purpose of this post-facto reporting requirement is to enable the commission to monitor the development of the capital market, for the better protection of investors. While the underlying purpose has not been brought into question, concern has been expressed about the effect and intended operation of this provision. In particular, it has been suggested that section 7A as drafted is insufficiently precise and will also catch advertisements which are already exempt by virtue of other provisions of the Ordinance.