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The Secretary for Financial Services, Mr Stephen Ip, announced today (November 9) the establishment of a Process Review Panel for the Securities and Futures Commission ("the Commission").
"The Process Review Panel is an independent body appointed by the Chief Executive. It will review the Commission's internal operations, including its investigative and disciplinary procedures, to ensure that they are fair and consistently followed," Mr Ip said.
Part of the Commission's work is necessarily subject to privacy and confidentiality requirements. Specific, as opposed to general or public, information cannot always be publicly disclosed. This could give the public some doubts as to whether the Commission is taking appropriate action in response to intermediary impropriety, market misconduct, financial crime or other improper activities. It is important to enhance the accountability and transparency of the Commission.
"In preparing the Securities and Futures Bill, we have pledged to bridge this gap by establishing an independent, non-statutory panel to review the Commission's internal operations that, by their nature, cannot be meaningfully scrutinised by the existing Securities and Futures Appeals Panel or other review channels," Mr Ip said.
The Chief Executive has appointed the following persons to the Process Review Panel -
Chairman
* Mr CHENG Hoi-chuen, Vincent
Vice Chairman and Chief Executive of Hang Seng Bank Limited
Members
* The Hon CHAN Charnwut Bernard
Legislative Councillor
* Mr CHEONG Ying-chew, Henry
Chairman and Chief Executive Officer of Worldsec International Limited
* Mr FONG Hup
Partner of Deloitte Touche Tohmatsu
* Mr Robert George KOTEWALL
Senior Counsel
* Mr KWAN Pak-chung, Edward
Executive Director of HSBC Broking Services (Asia) Limited
* Dr LEE Hon-chiu
Chairman of Hysan Development Company Limited
* Professor LIU Pak-wai
Professor of Economics and Pro-Vice-chancellor of The Chinese University of Hong Kong
* Mr PANG Yuk-wing, Joseph
Executive Director and Deputy Chief Executive of The Bank of East Asia Limited
Ex-officio Members
* Mr SHENG L T, Andrew in his capacity as Chairman of the Securities and Futures Commission
* Mr FAN Hung-ling, Henry in his capacity as a Non-Executive Director of the Securities and Futures Commission
* Mr Ian G M WINGFIELD, Law Officer (Civil Law), Department of Justice in his capacity as a representative of the Secretary for Justice
The Chairman and Members of the Panel have been appointed in their personal capacity for a term of two years, starting from November 1, 2000, other than for Dr Lee Hon-chiu whose term of appointment will commence on January 1, 2001, following completion of his service on the Board of the Hong Kong Exchanges and Clearing Limited.
"The Panel membership is broadly based and representative of the market. Members possess the professional knowledge and expertise that is conducive to the effective operation of the Panel," Mr Ip said.
"The Panel's first task will be to examine and advise the Commission on the adequacy of the Commission's existing procedures governing key areas of its operations, to ensure that those procedures are fair and equitable," he said.
"The Panel will receive reports from the Commission on a wide range of operational matters, including all completed or discontinued cases, the results of prosecutions and appeals, and the manner in which complaints against the Commission or its staff have been dealt with," he added.
The Panel's remit covers the licensing and inspection of intermediaries; the exercise of statutory powers of investigation, inquiry and prosecution; the handling of reports of suspected misconduct or irregularity on persons over whom the Commission has regulatory responsibility and the taking of disciplinary action against registered intermediaries.
The role of the Panel is not to judge the merits of the Commission's regulatory decisions and actions, as there are existing avenues for this purpose. These include the Securities and Futures Appeals Panel which hears appeals against the Commission's decisions, scrutiny by the Ombudsman and ICAC, as well as judicial review of the Commission's decisions.
In addition to advising the Commission, the Process Review Panel will submit regular reports to the Financial Secretary. These reports will be published as far as permitted under law.
"We have established the Process Review Panel ahead of the enactment of the Securities and Futures Bill, in order to demonstrate our resolve to enhance the transparency and accountability of the Commission," Mr Ip said.
"I am delighted that the Commission is supportive of the establishment of the Panel," Mr Ip added. "It is fully committed to exercising its regulatory powers in a fair and consistent manner. This is important for gaining public confidence and trust in the implementation of legislative reforms for the securities and futures market."
The appointment of the Process Review Panel will be published in the Gazette on November 10, 2000.
End/Thursday, November 9, 2000
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