Entity to operate as a public company, non-statutory advisory body to govt

The newly established Financial Services Development Council (FSDC) is a non-statutory body that will operate under the Financial Services and the Treasury Bureau, instead of a civilian organization, said its chairperson Laura Cha.

The council, which is an advisory body without administrative functions or power, would operate as a public organization subject to the anti-corruption law, Cha told reporters after the council's first meeting on Tuesday.

It is a non-profit body and the council is not intended to accept private donations at the moment, Cha added.

The Securities and Futures Commission, the Trade Development Council and the Financial Services and Treasury Bureau will each second one staff member to the council over the coming three years.

The council will then review its work and make long-term financial arrangements, said Cha.

The council may follow overseas experience and operate in the form of a company limited by guarantee to beef up its independence and flexibility, according to Cha, who nevertheless emphasized that it is still a plan without any timetable for implementation.

Billy Mak, associate professor of Finance and Decision Sciences at Hong Kong Baptist University, said operating in the form of a limited company provides easier access to establish the council in the city, which will also assist the organization's works to proceed independently of the government.

But it is rare for a registered company to provide consultation services to the government, and this may have confused the public, Mak told China Daily in a telephone interview.

Cha made the clarifications on Tuesday after the opposition camp on Monday questioned the newly established body's roles. Some said the council's position is unclear and its duty seems to overlap those of existing organizations.

Pro-establishment lawmakers have also advised the council to consider applying for government funds to avoid unnecessary speculation.

During the council's first meeting held on Tuesday, 20 of the total 22 members attended it and have decided five research areas for the organization. They include financial development policies, mainland opportunities, innovation business, marketing, as well as human resources, according to Cha.

Members of the council will consider joining one or some of the five research topics later, she added.

Chief Executive Leung Chun-ying said in his January Policy Address that the Hong Kong government will take several measures, including setting up the Financial Services Development Council, to boost the long-term economic development and competitiveness of the financial sector.

litao@chinadailyhk.com

(HK Edition 01/23/2013 page2)