ENG-2006 — Page 118

90 | Financial and Monetary Affairs

to give effect to the new levy rates (0.004 per cent per purchase or sale of securities and $0.80 per purchase or sale of a futures contract) which came into operation on December 1, 2006.

Rewrite of the Companies Ordinance

The Standing Committee on Company Law Reform (SCCLR), established in 1984, meets regularly to consider amendments to the Companies Ordinance (CO) to ensure that the CO meets the evolving needs of the business community. The Companies Registry provides secretariat support for the SCCLR.

The Overall Review of the CO and the Corporate Governance Review by the SCCLR in recent years resulted in a number of recommendations for reform. Some of the recommendations such as those relating to shareholders' remedies have been implemented through amendments to the CO. There are, however, many remaining recommendations such as reform of the capital maintenance provisions and modernisation of statutory language that are best taken forward through a comprehensive rewrite of the CO. The rewrite exercise will also provide Hong Kong with an up-to-date legal infrastructure attuned to its needs as a major international business and financial centre.

To take forward the rewrite, a dedicated Companies Bill Team (CBT) comprising officers from the Financial Services and the Treasury Bureau and the Companies Registry was set up in mid-2006. In addition to the SCCLR and a joint Government- Hong Kong Institute of Certified Public Accountants working group set up in March 2002 to review the accounting and auditing provisions of the CO, the CBT also consults relevant professionals, market practitioners, academics and other stakeholders through four advisory groups established in late 2006. It also leverages on recent company law developments in other common law jurisdictions such as the United Kingdom, Australia and Singapore.

Certain complex subjects, including accounting and auditing provisions, share capital, distribution of profits and assets, and company charges, will be put forward for public consultation in 2007 and 2008. The new Companies Bill will be issued for public consultation in the form of a white bill in mid-2009.

Enhancement of the Financial Infrastructure

HKSCC launched the Stock Segregated Account (SSA) service in 1994 to facilitate brokers/custodians to segregate an investor's stockholdings (which are under their custody) from their own and that of other investors. Investors receive statements (daily movement statement and monthly balance statement) directly from HKSCC, which serve as an additional way for investors to track their stockholdings. in January 2007, HKSCC announced the introduction of new features to the SSA service to provide users with an enhanced customer interface and more timely information.

Separately, the SFC worked closely with the Government, various regulatory authorities, and industry and professional associations during the year to promote XBRL (eXtensible Business Reporting Language) for financial reporting in Hong Kong.