ENG-2010 — Page 120

78 | Financial and Monetary Affairs

conclusions were issued in July 2010. The Government will continue to develop a statutory corporate rescue procedure to help companies in short-term financial difficulty, but with viable long-term business prospects, to turn around.

Improving Market Quality and Investor Protection

Proposed Statutory Codification of Certain Requirements to Disclose Price Sensitive Information (PSI) by Listed Corporations

The Administration believes that a statutory regime to require listed corporations to disclose PSI in a timely manner is necessary to enhance market transparency and quality, to bring Hong Kong's regulatory regime for listed corporations more in line with those of overseas jurisdictions, and to sustain Hong Kong's position as China's global financial centre and as a premier capital formation centre in the region. In March - June 2010, a public consultation was conducted on the proposed statutory codification of certain requirements to disclose PSI by listed corporations. The respondents generally agreed to the objective of cultivating a continuous disclosure culture among listed corporations.

The Administration plans to introduce a bill into the Legislative Council to codify the disclosure requirements in the Securities and Futures Ordinance (SFO) in the 2010-11 legislative session.

Rationalisation of the Public Offering Regime for Structured Products

The Securities and Futures and Companies Legislation (Structured Products Amendment) Bill 2010 was introduced into the Legislative Council on July 14, 2010. The bill aims to rationalise the legislative framework by putting the regulation of public offers of all structured products under the offers of investments regime of the SFO. Under the proposed regime, the SFC would authorise the issue of advertisements, invitations or documents relating to structured products; be empowered to authorise structured products; and publish codes and guidelines setting out its regulatory policy on such products. By issuing codes and guidelines under the SFO, the SFC would have more flexibility in setting out its regulatory policy on structured products.

Proposed Establishment of an Investor Education Council and a Financial Dispute Resolution Centre

Following a three-month public consultation from February to May 2010, the Government announced in December 2010 its decision to establish an Investor Education Council (IEC) and a Financial Dispute Resolution Centre (FDRC) to enhance protection for investors. IEC would holistically oversee the delivery of investor education. FDRC, on the other hand, helps consumers settle their monetary disputes with financial institutions through an impartial, simple and quick resolution mechanism.

Regulation of Credit Rating Agencies

Following the G20's consensus on the need to subject credit rating agencies. (CRAs) to a regulatory oversight regime, the European Union, the United States, Japan and Australia have announced regulatory measures to strengthen oversight of CRAS. Hong Kong will also establish such a regulatory regime to enhance investor

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