Appointment to Process Review Panel for the Securities and Futures Commission

Press Release

Appointment to Process Review Panel for the Securities and Futures Commission Thursday, November 7, 2002

The Secretary for Financial Services and the Treasury, Mr Frederick Ma, announced today (November 7) that the Chief Executive has re-appointed the Chairman and members of the Process Review Panel for the Securities and Futures Commission (SFC) and appointed a new member for the period November 1 2002 to October 31 2004.

"The Process Review Panel is an independent body established in November 2000. It reviews the SFC's internal operation procedures, including its licensing, investigative and disciplinary procedures, to ensure that they are fair and consistently followed. The membership represents a good mix of knowledge, experience and expertise from relevant quarters which is conducive to the effective operation of the Panel," Mr Ma said.

"I am grateful for the time and effort the Chairman and members of the Panel have devoted over the past two years to reviewing and advising the SFC upon the adequacy of the SFC's internal procedures and operational guidelines," said Mr Ma.

In carrying out its function, the Panel may call for and review files of the SFC. It also considers periodic reports from the SFC on the receipt and handling of complaints against the Commission.

The role of the Panel is not to judge the merits of the SFC's regulatory decisions and actions, as there are existing avenues for this purpose. These include appeals to the Securities and Futures Appeals Panel (to be upgraded to a statutory tribunal with expanded ambit under the Securities and Futures Ordinance), scrutiny by the Ombudsman and the Independent Commission Against Corruption, as well as judicial review of the SFC's decisions.

In addition to advising the SFC, the Process Review Panel submits regular reports to the Financial Secretary. These reports will be published as far as permitted under law. The Panel published its first report, which covers the period from November 2000 to December 2001, in May 2002.

Following is the new membership list of the Process Review Panel with effect from 1

1 November 2002 :

Re-appointment ------

Chairman ------

* Mr Cheng Hoi-chuen, Vincent Vice Chairman and Chief Executive of Hang Sang Bank Limited

Members ------

* The Hon Chan Charnwut Bernard Legislative Councillor

* Mr Cheong Ying-chew, Henry Director of Worldsec International Limited and UOB Kay Hian (Hong Kong) Limited

* Mr Fong Hup Senior Advisor of Deloitte Touche Tohmatsu

* Mr Robert George Kotewall Senior Counsel

* Mr Kwan Pak-chung, Edward Chief Executive Officer of HSBC Broking Services (Asia) Ltd.

* Professor Liu Pak-wai Professor of Economics and Pro-Vice-Chancellor of the Chinese University of Hong Kong

* Mr Pang Yuk-wing, Joseph Executive Director and Deputy Chief Executive of the Bank of East Asia Limited

2 Ex-officio Members ------

* Mr Sheng L T, Andrew in his capacity as Chairman of the Securities and Futures Commission

* Mr Fan Hung-ling, Henry in his capacity as a Non-Executive Director of the Securities and Futures Commission

* Mr Ian G M Wingfield, Law Officer (Civil Law), Department of Justice in his capacity as a representative of the Secretary for Justice

New appointment ------

Member ------

* Mr Alan Howard Smith Former Vice-Chairman, Pacific Region, Credit Suisse First Boston