"The second Annual Report of the PRP contains a comprehensive review of the adequacy of selected internal procedures of the SFC. The PRP has made a number of well-considered recommendations to improve the transparency, efficiency, consistency and checks and balances of these SFC procedures. I am pleased to note that the SFC has accepted most of the recommendations," Leung said.

"The report demonstrates that the PRP, with the full cooperation of the SFC, has made valuable contributions in furthering quality regulation of Hong Kong's securities and futures markets," Leung said.

The Process Review Panel for the Securities and Futures Commission Tuesday published its second Annual Report covering the work of the PRP from 1 January 2002 to 31 December 2002.

"In 2002, the PRP reviewed 48 completed cases covering various areas of the SFC's work. The PRP has concluded that in general, adequate safeguards and checks and balances are in place in the SFC's internal procedures. The decisions and actions of the SFC in carrying out its regulatory functions adhere to its established internal procedures," Vincent Cheng, Chairman of the PRP, said.

The second PRP Annual Report contains recommendations which cover a wide spectrum of the SFC's regulatory work. Specific recommendations accepted by the SFC include shortening the processing time of the inspection of intermediaries, issuing interim replies to the inspected intermediaries on the initial findings of inspections and setting target dates for issuing substantial replies to complainants.

In its third year of work in 2003, the PRP intends to focus on examining the new procedures formulated for implementing the new regulatory regime under the SFO.

(Xinhua News Agency May 14, 2003)