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The Securities and Futures (Amendment) Ordinance 2006 (Amendment Ordinance), which amends the Securities and Futures Ordinance to provide for the separation of the role of the Chairman of the Securities and Futures Commission (SFC) from that of the executive arm of the SFC and to create a Chief Executive Officer (CEO) post, was gazetted today (June 23).
The Amendment Ordinance was passed by the Legislative Council on June 14, 2006 with majority support.
The Secretary for Financial Services and the Treasury, Mr Frederick Ma, when moving the resumption of the Second Reading of the Bill on June 14, 2006, said: "The SFC has an important role to play in maintaining Hong Kong's position as an international financial centre."
"With the rapid development of the securities and futures markets, there is a need for us to continually enhance the internal governance and regulatory structure to ensure the effective functioning of SFC in order to meet the challenges in future."
Under the new structure, SFC will be led by a chairman whose role will be separated from the executive arm, while the executive arm will be headed by a CEO. This model is in line with best governance practices both locally and internationally.
The future Chairman will lead the SFC Board in setting the overall direction, policies and strategies of the Commission and monitoring the performance of the executive arm in fulfilling the objectives, policies and strategies set by the board.
As for the CEO, he has the executive responsibility for the day-to-day running of SFC. He should implement the objectives, policies and strategies agreed by the board, and facilitate the board's effective functioning.
Upon the commencement of the Amendment Ordinance, the Chief Executive has appointed Mr Martin Wheatley as the new CEO of SFC from June 23, 2006 to September 30, 2008. The appointment of the new SFC Chairman will be announced at an appropriate time.
Ends/Friday, June 23, 2006
Issued at HKT 18:12
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