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FINANCIAL AND MONETARY AFFAIRS

multilingual reference centre with information on investment. The eIRC operates as a virtual library with links to web sites of regulators, market operators and Internet content providers.

During the year, the SFC also worked with Radio Television Hong Kong and Commercial Radio to produce two series of radio segments entitled 'Learning to Invest' and 'Basics of Smart Investing' respectively. Both series aimed to promote investors' understanding of their rights, obligations, and the risks that they are entered into when making an investment. A 'Question Corner' was also introduced on the SFC's web site to answer typical questions raised by retail investors on stock, derivative and fund investments.

During the year, the SFC continued to participate actively in external relations and international activities, including the commission's work with the International Organisation of Securities Commissions (IOSCO). The SFC chairs the IOSCO Committee responsible for developing implementation and assessment methodologies for the IOSCO Objectives and Principles, and offering assistance to the international financial institutions in their use of financial Objectives and Principles. The SFC is also a member of the IOSCO Task Force to consider the regulatory implications of the provision of financial services and the offering of investments over the Internet. The SFC further participates in five IOSCO's working parties which focus on multinational disclosure and accounting, regulation of secondary market, regulation of market intermediaries, enforcement and exchange of information and investment management, respectively.

In September, the SFC hosted a seminar for members of the IOSCO's Asia Pacific Region Committee (APRC) to discuss regulatory issues relating to on-line trading. The commission also continued to maintain close liaison with the China Securities Regulatory Commission and conducted a staff exchange programme with it for attachment purposes. The SFC also jointly runs an enforcement training programme in Shenzhen with trainers from the Securities and Exchanges Commission of the United States as part of its efforts to assist the Mainland in the training and development of market professionals.

Insider Dealing Tribunal

The Insider Dealing Tribunal is an important feature of the regulatory framework for the securities market in Hong Kong. Established under the Securities (Insider Dealing) Ordinance, the tribunal looks into cases involving suspected insider dealing referred to it by the Financial Secretary. Since it commenced operation in 1994, the tribunal has successfully concluded 10 cases.

Office of the Commissioner of Insurance

The Commissioner of Insurance, appointed as the Insurance Authority (IA), exercises prudential supervision over the insurance industry in Hong Kong under the Insurance Companies Ordinance (ICO).

The ICO, which prescribes a comprehensive regulatory framework for all classes of insurance business, has two main objectives as regards protection of policy holders. First, it aims at ensuring the financial stability of all insurers authorised in Hong Kong. Secondly, it aims at ensuring the fitness and propriety of the management of an insurer. These objectives are achieved through the prescription of, inter alia, the

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