TNAG-1943-FCO40-2769-Stock-market-and-exchange-rate-in-Hong-Kong-1989 — Page 130

Explanatory Memorandum

The purpose of this Bill is to amend the law relating to

dealing in securities and trading in commodities futures contracts.

The Bill makes the following major changes

(a)

(b)

(c)

(d)

-

a new body corporate, the Securities and Futures

Commission ("the Commission") is established to perform

the functions now performed by the Securities Commission,

the Commodities Trading Commission, the Commissioner for

Securities and the Commissioner for Commodities Trading;

in addition, the Commission is -

(i) required to refuse applications for registration

under the Securities Ordinance (Cap. 333) or the

Commodities Trading Ordinance (Cap. 250) unless it is

satisfied that the applicant is a fit and proper person

(clause 21); and

(ii) empowered to exercise certain new supervisory

powers as regards those engaged in the business of

dealing in securities or trading in commodities futures

contracts. The most important of these powers are

contained in Part V;

a new appellate body is established to determine appeals

under the Bill; and

new levies will be payable to the Commission in relation

to the purchase and sale of securities, and leviable

transactions within the meaning of section 79A (4) of the

Commodities Trading Ordinance.

The provisions of the Bill will be brought into operation on dates

to be fixed.