TNAG-1896-FCO40-2690-Calls-on-Francis-Maude--Minister-of-State-for-Foreign-and-Co-1989 — Page 109

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WINAAK (5)

certain proposals before enactment of the legislation in particular

where the powers sought for the new Commission were perceived as too

strong.

5. The SFC is outside the civil service. Purpose is to free the

regulatory body from th normal civil service constraints with regard to recruitment procedures and staff remuneration, so that

professionals of the right calibre can be recurited as regulators at

market salaries. The SFC, although independent of the civil

service, remains part of the wider Government machinery.

6. All directors of the SFC, including the Chairman and the Deputy Chairman, as well as members of its Advisory Committee, are appointed by the Governor. Policy issues and legislative programme will be processed through the Secretary for Monetary Affairs. The annual Government grant to the SFC will need to be approved by the

Finance Committee of Legislative Council. The SFC will also be required to submit its annual budget to the Governor for approval and to table its annual report and statement of accounts at

Legislative Council. The Director of Audit will have access to its

accounts.

7. The SFC legislation should be seen as a first, but most

important, step in a comprehensive overhaul of the securities and futures legislation in Hong Kong, as recommended by the SRC. whole process is likely to take upwards of two years.

The