The Working Group on the Business Environment of the Stockbroking Industry has endorsed the positive moves taken by Hong Kong Exchanges & Clearing to abolish a number of regulatory requirements and the associated 10 fee items on brokers.

Secretary for Financial Services & the Treasury Frederick Ma thanked the Working Group, tasked to examine the local stockbroking industry, for its dedicated efforts and the stockbroking industry associations for sharing with the Working Group their useful comments and constructive suggestions.

The Working Group recommends that the Monetary Authority continue to ensure effective enforcement of its "cold calling" guidelines issued in January 2003, and work closely with the Securities & Futures Commission to ensure consistency in their regulatory approach towards banks and brokers.

Moreover, the authority should explore with the Securities & Futures Commission the possibility of rationalising the relevant regulatory fees imposed on banks for conducting securities business, with a view to introducing a sliding scale of fees reflecting the size of the securities business of a bank.

For the report, click here.