The top priority of the Securities and Futures Commission (SFC) of Hong Kong in 2003 is to ensure a seamless transition to the new regulatory framework under the Securities and Futures Ordinance (SFO), said Chairman Andrew Sheng Wednesday at a news conference.
This represents significant improvements in many areas of securities and futures regulation, including more effective measures for investor protection, Sheng said.
The SFO was enacted in March last year and is expected to come into operation on April 1, 2003.
Sheng said the Commission will also toughen its enforcement activities to tackle listed corporate crime and misconduct in the securities and futures area.
"There will likely be more listed company investigations and enforcement action arising from dual filing. The SFC will take stern action against IPO (initial public offering) sponsors whose work falls short of the high standards expected of them," Sheng said. "And there will also be more disclosures of listed company interest regime under the SFO," he added.
In addition to enforcement, the SFC will continue to work on other areas of work including investor education, enhancement of market quality, market development facilitation, and infrastructure building.
Sheng said the SFC will continue to exercise strict cost control this year. According to him, annual operating expenditure for the fiscal year ending on March 31, 2003 is projected to be 5 percent lower than that of last year, and the projected full year deficit is US$69 million.
(Xinhua News Agency February 13, 2003)
