The LPP will be constituted by memorandum of understanding arrangements between the SFC and the Stock Exchange and will serve as a focal point for new policy proposals. The panel, on which the SFC and the Hong Kong Exchanges and Clearing Limited (and its wholly-owned subsidiary the Stock Exchange) are equally represented, will have 12 members with a composition as follows:
- two non-executive Directors from the board of directors of Hong Kong Exchanges and Clearing Limited ("HKEX"), the Chairperson and two Deputy Chairpersons of the Listing Committee of the Stock Exchange (the "Listing Committee") and the Chief Executive of HKEX; and
- two non-executive Directors from the board of directors of the SFC, the Chairperson of the "Takeovers and Mergers Panel", the Chief Executive Officer of the SFC, the Executive Director of the Corporate Finance Division of the SFC and a Senior Director of the Corporate Finance Division of the SFC. The LPP will have no rule-making powers, and its recommendation will not be binding on the organisations represented on the LPP.
The LPP may request the Listing Department of the Stock Exchange to work on a detailed proposal in relation to any policy matter, and the Listing Department will consult the LPP from an early stage when formulating Listing Rule amendments or other policy proposals. The views, advice or recommendations of LPP members will be relayed to the Listing Committee, the HKEX's board and the SFC's board when their approvals are sought for any policy or rule changes.
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