Penalty level in the air but commission chairman pushes for maximum of $10m
The government has agreed in principle to give the Securities and Futures Commission the power to fine companies and directors for breach of listing rules, according to a senior government source.
The fine's limit has yet to be decided. Commission chairman Martin Wheatley is pushing for a maximum of $10 million, while the government wants a lower figure.
'The SFC already has the power to impose a fine of up to $10 million on brokers and other licensed persons. It is reasonable to allow the commission to impose a similar level of fine on the directors or companies breaching the listing rules,' Mr Wheatley said.
The source said the issue was likely to be resolved before the long-awaited market reform bill is put before the Legislative Council in October.
'After a long discussion with the SFC chairman, the administration accepts that it is important for the commission to have the power to impose fines on rule breakers,' the source said. 'At the end of the day, it will be up to the SFC to enforce the listing rules with statutory backing.'