The Process Review Panel for the Securities & Futures Commission has reviewed 47 completed cases and found it has adhered to internal procedures in its decisions and actions, panel chairman Vincent Cheng says.

The panel today published its fourth annual report covering its work in 2004. Mr Cheng said the panel has also identified areas with room for improvement.

It considered views from the industry, in particular regarding the procedures in relation to the issue of warning letters and the settlement of disciplinary action.

Financial Secretary Henry Tang welcomed the report, and thanked the panel for their dedication to enhancing the quality of market regulation in the past year.

Recommendations and specific improvements adopted by the commission cover:

* supervision of intermediaries;

* authorisation of investment products;

* complaints handling;

* warning letters;

* hearing and appellate process relating to the issue of warning letters;

* procedures in settlement for disciplinary action;

* investigation; and,

* verbal requests for information concerning the clients of securities firms.

"We appreciate the co-operation and support rendered by the commission to the work of the panel and look forward to continuing to work closely with the commission in future," Mr Cheng said.

In the coming year, the panel will handle the issue of warning letters to intermediaries, and the conclusion of settlement agreements with people for whom disciplinary action has been proposed.

It will also review the commission's internal procedures for its regulatory oversight of the performance of listing functions by Hong Kong Exchanges & Clearing and the commission's performance in administering the dual filing regime.

Mr Cheng said views from the public are welcome at prp@fstb.gov.hk. The report and its executive summary can be downloaded here.