Plans for the Securities and Futures Commission to buy its own office have drawn more fire from legislators, who say they are concerned that the regulator may spend too much on a luxurious new home.
At a meeting with lawmakers yesterday, the SFC disclosed in its revised budget that it was considering using part of its cash reserves to buy its own office instead of renting it.
The SFC had to resubmit its budget to lawmakers after they rejected its first submission last month, criticising it for refusing to cut the 0.003 per cent levy on stock trades despite having cash reserves of HK$7.4 billion.
The cash pile is sufficient to fund the SFC's operations for seven years. Under the law, it should consider cutting the levy if its reserves can support it for two years.
In its revised budget, the SFC has refused to cut the levy in case it buys a property. Instead, it proposes to waive licence fees for brokers, fund houses and investment advisers for the next two years from next month, which would cost it HK$332.4 million in income.
Chief executive Ashley Alder told the legislators that buying its own premises would save HK$180 million in rental expenses annually.