An amendment bill which provides for the separation of the role of the Securities & Futures Commission chairman from that of the executive arm will be gazetted on March 11 and tabled to the Legislative Council on April 6.

The proposal seeks to build on the commission's current strengths and enhance its internal governance. This will help ensure the commission's effective functioning in order to meet future challenges, as well as its role as a credible, effective and independent regulator.

The Securities & Futures (Amendment) Bill 2005 stipulates the commission will be led by a chairman whose role will be separated from the executive arm, while the executive arm will be headed by a chief executive officer. This model is in line with best governance practice both locally and internationally.

The future chairman will lead the commission board in setting the overall direction, policies and strategies and monitoring the performance of the executive arm in fulfilling the objectives, policies and strategies set by the board.

To enhance internal checks and balances, the future chairman will not be involved in the commission's day-to-day running.

The chief executive officer has the executive responsibility for the commission's day-to-day running, and should implement the objectives, policies and strategies agreed by the board, as well as facilitate its effective functioning.