Securities and Futures Ordinance - Consultation on the Securities and Futures (Disclosure of Interests - Exclusions) Rules

The Securities and Futures Commission (SFC) today publishes for public consultation a draft of the Securities and Futures (Disclosure of Interests - Exclusions) Regulation which the Chief Executive in Council proposes to make under section 376 of the Securities and Futures Ordinance (No. 5 of 2002) when it commences.

Part XV of the Ordinance requires the disclosure of interests in securities by persons who are interested in 5% or more of the relevant share capital of a listed corporation and by directors and chief executives of listed corporations. Under section 323 of the Ordinance the Chief Executive in Council may by regulations prescribe certain interests in shares that are to be disregarded for the purposes of Part XV of the Ordinance.

The draft Regulation have been prepared having regard to the interests disregarded from the existing Securities (Disclosure of Interests) Ordinance (Cap. 396) under existing Regulations but also reflect the conclusions set out in a Consultation Paper dated June 1998 and a Consultation Conclusions Paper dated April 1999. The June 1998 Consultation Paper proposed that interests held by trust companies and their subsidiaries that are locally incorporated, and interests held by an investment manager in certain circumstances, should no longer be disregarded. The rationale was to promote market transparency, meet international standards and create a level playing field. No new policy changes have been incorporated into the draft Regulation beyond those proposed in the Consultation Paper and Conclusions Paper.

The public is invited to submit comments in writing before close of business on 8 June 2002. They may be sent -

By mail to:
SFC (Disclosure of Interests)
12/F, Edinburgh Tower
The Landmark
15 Queen's Road Central
Hong Kong

By fax to: (852) 2868 0252

By on-line submission at: http://www.hksfc.org.hk

By e-mail to: Disclosure_of_Interests@hksfc.org.hk

Copies of the draft Regulation are available at the SFC's office and on the SFC's website at www.hksfc.org.hk.