Full-time judges to head new securities tribunals

The government has appointed two High Court judges to head tribunals established under the new Securities and Futures Ordinance, which came into force today (April 1).

Mr Justice Lugar-Mawson has been appointed Chairman of the Market Misconduct Tribunal (MMT) and Mr Justice Stone, Chairman of the Securities and Futures Appeals Tribunal (SFAT). Both appointments are for a period of three years.

In making the announcement today, the Secretary for Financial Services and the Treasury, Mr Frederick Ma, said the appointment of Mr Justice Lugar-Mawson and Mr Justice Stone to head the MMT and the SFAT would contribute to the effective operation of the two tribunals.

The Market Misconduct Tribunal replaces the former Insider Dealing Tribunal and deals with, in addition to insider dealing, false trading, price rigging, disclosure of information about prohibited transactions, disclosure of false or misleading information inducing transactions and stock market manipulation.

"Building on the strength of the IDT, the MMT conducts civil proceedings to hear a wider range of market misconduct and imposes civil sanctions against the wrongdoers. It helps promote market confidence by protecting the interests of the investing public and reducing market malpractice," Mr Ma said.

The Securities and Futures Appeals Tribunal upgrades the old Securities and Futures Appeals Panel to a statutory tribunal with jurisdiction to review a much wider range of decisions made under the Ordinance by the Securities and Futures Commission (SFC), the Hong Kong Monetary Authority and the Investor Compensation Company recognised by the SFC.

"The SFAT, chaired by a full-time judge and with a wider jurisdiction, will be an effective safeguard to ensure that the relevant regulatory decisions are reasonable and fair," Mr Ma said.

He said the two new bodies were among various initiatives under the Securities and Futures Ordinance to increase effectiveness in combating market misconduct and to enhance the accountability of the SFC.

During the transition, both the IDT and the SFAP would continue to operate until they completed the cases originated prior to the commencement of the new Ordinance.

End/Tuesday, April 1, 2003