THE point when a commission can become a bribe is expected to be debated soon by the stock exchange council, following the aquittal last Monday of former stock exchange vice-chairman Chen Po-sum of bribery charges.
Brokers take commissions all the time, but when a broker who takes money from brokerages interested in a floor seat on the exchange has the power to give them just that, and fails to disclose this, questions are raised.
Such conflict-of-interest guidelines as exist for members of the stock exchange council 'are expressed in vague and general terms', exchange company secretary Tsang Chiu-wan conceded to the jury at the trial.
A market analyst said: 'Maybe in the wake of this, the stock exchange will introduce some guidelines requiring committee members to disclose any conflict of interest, but I doubt commissions will be stopped.' Sources said the issue of commissions probably would be brought up at the next monthly meeting of the stock exchange council, on June 4.
A stock exchange spokesman, while refusing to confirm the date, said it would be discussed 'as soon as possible'.
The lack of conflict of interest guidelines shows a gap in exchange rules, a point Anthony Neoh, the chairman of the Securities and Futures Commission, made at the trial, when he noted the taking of commissions by committee members on the exchange was a 'grey area'.