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2

ensure that parties concerned would not suffer unnecessar

sarily from any indiscriminate disclosure of sensitive information concerning individual companies or their directors and/or controllers in the

our regulatory authorities. exercise of the discretion by the Insurance Authority or in the

handling of information by the third party, local or overseas, of

such information.

In general, the Group has found the principles of the two Bills worth supporting. As regards the details, the group

has, in the course of the study,

the study, identified a number of areas,

which which require further refinement and as a result of

have

agreed a number of amendments with

in

deliberations,

to

the Administration which I will move at the Committee, Stage.

*

Sir,

this Bill and the Insurance Companies (Amendment)

two Bill 1988 are but (2) out of a series of legislation introduced to improve our prudential control. The Ad hoc group is fully aware, also, of the publication of the Report of the Securities Review Committee on the Operation and Regulation of the Hong Kong Securities Industry. We. fully support the Administration's

efforts to examine the shortcomings in the operation of the securities industry so as to bring in the necessary reforms.

With these remarks, I support the motion.

The major amendment will be to insert

a new section 19(2)(h) which provides that the Commissioner for Securities will have to be satisfied that there are adequate secrecy provisions in the jurisdiction of the overseas regulatory authority before disclosing to them the information requested.

Question put and agreed to.

Bill read the Second time.

Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).

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