An automatic levy triggering mechanism should be introduced, the Securities & Futures Commission says. Current investor compensation levies would be suspended if the net asset value of the Investor Compensation Fund tops $1.4 billion and re-imposed if it falls below $1 billion.

The commission today released the conclusions on the Consultation Paper on the Review of the Level & Funding of the Investor Compensation Fund, Broker Defaults since 1998 & the Operation of the Investor Compensation Arrangements.

The paper was published on December 22. It proposed, among other things, to introduce an automatic levy triggering mechanism for the fund and recommended maintaining the existing per-investor compensation limit of $150,000.

The consultation period ended on February 4, and 12 submissions were received. The majority supported the recommendations.

The commission is working with the Government to introduce the legislative changes to facilitate the proposals' implementation.

For details of the conclusions, click here.

Conflicts of interest guidelines take effect April 1

The commission reminded licensed people and registered institutions that the guidelines to address analyst conflicts of interest will come into effect on April 1.

The guidelines aim to remove, reduce and manage conflicts faced by analysts and their firms, and have taken into consideration the International Organisation of Securities Commissions' principles, developments in other jurisdictions and local characteristics.