TNAG-1943-FCO40-2769-Stock-market-and-exchange-rate-in-Hong-Kong-1989 — Page 4

Concern

was also expressed lest, in the spot check inspection power in clause 28 of the Bill, officers of the Commission might undertake wide ranging "fishing expeditions". This was a concern expressed by the Society of Securities Analysts. It is that the Bill permits such inspections only for the purpose of ensuring that the relevant Ordinances and regulations are being complied with.

emphasized

necessary.

The Law Society raised the question of whether the procedure for certifying to the High Court a refusal by a registered person to comply with a request, for example, to make his records available, was

It is considered however that this power is both desirable and necessary.

It will be for the judiciary to determine, in any particular case, whether a refusal co-operate is justified or not, and since an unreasonable refusal may be treated as a contempt of court, it is considered that this procedure gives the best prospect for the Commission to obtain the information in question.

to

Generally, the market bodies regarded investor protection as being of paramount importance.

10. Powers of intervention: Concern was expressed by several bodies that, since the harm done to a business by exercise of the intervention powers might be irreparable, there should be an expedited appeal procedure. As mentioned above, this is a question for the administrative procedures of the Appeal Board, but it is considered that an appeal ought to be able to be heard within a matter of days rather than weeks.

11.

Budget of the Commission: The Futures Exchange and the Unit Trust Association were both of the view that, since part (and eventually the larger part) of the funding of the Commission will be from the

the market, there should be some method by which the estimates of income and expenditure can be scrutinised by interested bodies representing the Exchanges and their users. On the other hand, the Financial Executives Institute took the view that the arrangements proposed were satisfactory, and that there were sufficient checks.