Plans to give the Securities and Futures Commission the power to fine listed companies and their directors for breaching stock-market rules have been dropped by the government because of widespread opposition.
The proposal to allow the securities watchdog to impose fines of up to $5 million was included in a government consultation paper released in January.
But a government source yesterday said: 'Half of all submissions in the consultation rejected the idea to give the SFC any new fining powers as they fear the proposal would lead to the commission doing the work of the police and the judge at the same time. Facing such opposition, it is not appropriate for the government to continue to pursue the proposal.'
The source added that the decision would not affect the commission's existing power to fine brokers, fund managers and investment advisers.
The Legislative Council financial affairs panel's meeting on Monday will discuss the government consultation paper, which also included a proposal to give the Market Misconduct Tribunal - set up two years ago - the power to impose fines of up to $8 million on listed companies and directors.
In its submission to the government last month, the SFC had asked that the proposals be changed to allow it to impose fines of up to $10 million and give the tribunal unlimited fining power.
Although the government has dashed the SFC's hopes, it has agreed to let the tribunal impose unlimited fines.
