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The following is issued on behalf of the Expert Group to Review the Operation of the Securities and Futures Market Regulatory Structure:
The Expert Group to Review the Operation of the Securities and Futures Market Regulatory Structure has today (October 9) called for submissions from interested parties and members of the public.
The Financial Secretary announced the appointment of the Export Group on September 26, 2002. Its terms of reference are at the Annex.
The Expert Group will review the roles and functions of the Government, the Securities and Futures Commission and the Hong Kong Exchanges and Clearing Limited on matters relating to the listing of securities and the governance of issuers with listed securities. It will also review the lines of communication among these three parties. It has been asked to recommend changes and improvements relating to the above issues and to use its best endeavours to submit a report before the end of March 2003.
The Expert Group is chaired by Mr Alan Cameron. The other two members are Dr Raymond Ch'ien and Mr Peter Clarke.
The Expert Group held its first meeting on October 5, 2002.
Mr Cameron, said: "To assist us in our work, we would welcome submissions and comments from all interested parties and members of the public on the subject of our review.
"In particular, we will communicate with representatives of issuers, financial intermediaries, service providers, investors, both institutional and individual, and Legislative Councillors.
"We will take into account the situation of the local and global markets.
"Through wide consultation with stakeholders we hope to benefit from the collective wisdom locally and good practices elsewhere.
"We aim to draw up recommendations that will increase the effectiveness, efficiency, clarity, fairness and credibility of the regulatory system, and ensure the quality and integrity of the markets and the proper protection of the investing public.
"We hope that all these will be conducive to the future development of the Hong Kong markets."
In view of time constraint, the Expert Group would appreciate submissions by November 20, 2002.
Submissions should be addressed to: Secretary, Expert Group to Review the Operation of the Securities and Futures Market Regulatory Structure:
* By post: Room 716, Central Government Offices, Main Wing, Lower Albert Road, Central, Hong Kong
* By fax: (852) 2537 1071
* By e-mail: erg@cso.gov.hk
For enquiries, please contact the Secretariat of the Expert Group at (852) 2810 2548.
Annex
Terms of Reference of the Expert Group to Review the Operation of the Securities and Futures Market Regulatory Structure
1. With a view to increasing the effectiveness, efficiency, clarity, fairness and credibility of the regulatory system for the securities and futures market of Hong Kong, and ensuring the integrity of the market and the proper protection of the investing public, to:
(a) review the roles and functions of the Government, the Securities and Futures Commission, and the Hong Kong Exchanges and Clearing Limited and its subsidiaries over matters relating to listing of securities and issuers with listed securities;
(b) review the operation of the regulatory structure as regards listing matters;
(c) review the lines of communication among the Government, the Securities and Futures Commission and the Hong Kong Exchanges and Clearing Limited; and
(d) recommend changes and improvements relating to issues in (a) to (c) above where appropriate.
2. In conducting the review, the Expert Group shall have regard to:
(a) the need to maintain the status of Hong Kong as an international financial centre;
(b) developments in the local and international securities and futures markets;
(c) the competitiveness of Hong Kong as a centre for listing companies from the Mainland, Asian time zone and global capital markets;
(d) the diversity of issuer and investor bases of the Hong Kong securities and futures market;
(e) the outcome of the deliberations in the Legislative Council in respect of the Securities and Futures Ordinance (Cap 571); and
(f) the findings and recommendations of the Panel of Inquiry on the Penny Stocks Incident.
3. The Expert Group should also:
(a) invite submissions from interested parties and the public, including but not limited to representatives of issuers, stock brokers and investing public, Legislative Councillors and the Standing Committee on Company Law Reform;
(b) consider the regulatory structures and systems in other major markets; and
(c) use its best endeavours to submit its report before the end of March 2003.
End/Wednesday, October 9, 2002
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