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WEDNESDAY, NOVEMBER 5, 1975
DEFOSIT-TAKING COMPANIES BILL
TALLED IN LECCO XXXXX
THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID TODAY THAT WHILE HE DID NOT THINK IT RICHT AT PRESENT TO ENLARGE THE LICENSED BANKING SECTOR EY ISSUING NEW LICENCES, THE PROPOSAL FOR A FORM OF LIMITED BANKING LICENCE HAS NOT BEEN ABANDONED AND WILL DE KEPT UNDER REVIEW.
HE GAVE THIS ASSURANCE IN LEGISLATIVE COUNCIL WHEN MOVING THE SECOND READING OF THE DEPOSIT-TAKING COMPANIES BILL WHICH AIMS AT PROTECTING THE INTERESTS OF DEPOSITORS.
MR. HADDON-CAVE SAID THAT ONE IMPORTANT OUTCOME OF THE BILL, IF ENACTED, WOULD BE THAT INFORMATION VOULD BECOME AVAILABLE ABOUT THE NUMBER OF DEPOSIT-TAKING COMPANIES AND THE SCALE OF THEIR ACTIVITIES. AT PRESENT, THIS INFORMATION IS ALMOST ENTIRELY LACKING.
+ONCE IT IS AVAILABLE, THE NEED FOR MORE COMPREHENSIVE CONTROLS AND SUPERVISION CAN BE ASSÉSSED,+ HE SAID,
THE FINANCIAL SECRETARY EXPLAINED THAT THE BILL HAD TWO MAIN PURPOSES - TO ENSURE THAT THE RISKS TO SHALL DEPOSITORS ARE MINIMISED BY REQUIRING THAT SHALL DEPOSITS BE HELD ONLY WITH THOSE FINANCIAL INSTITUTIONS WHICH ARE SUBJECT TO CLOSE SUPERVISION AND CONTROL AND TO ENSURE THAT OTHER FINANCIAL INSTITUTIONS ACCEPTING DEPOSITS FROM THE PUBLIC ARE OF REASONABLE SUBSTANCE. THAT THEIR ANNUAL ACCOUNTS DE OPEN TO THEIR DEPOSITORS, AND THAT THEIR ASSETS BACKING THE DEPOSITS ARE NOT UNDULY CONCENTRATED WITH ANY BORROWER.
HE STRESSED, HOWEVER, THAT THE PROPOSED LEGISLATION WAS NOT AN ATTEMPT TO +LÉGISLATE FOR THE COMPLETE PROTECTION OF ALL FOOLS.+
THE BILL REQUIRES A COMPANY TO PAY $10,000. ON REGISTRATION AND ANNUALLY THEREAFTER. ONE OF THE CONDITIONS FOR REGISTRATION IS THAT COMPANIES MUST HAVE A MINIMUM ISSUED CAPITAL OF $5 MILLION, OF WHICH AT LEAST $2-1/2 MILLION MUST HAVE BEEN PAID FOR.
BUSINESSES ALREADY IN EXISTENCE AT THE COMMENCEMENT DATE OF THE PROPOSED LEGISLATION ARE TO BE ALLOWED TWO YEARS TO MEET THIS PROVISION.
COMPANIES WILL ALSO BE REQUIRED TO PROVIDE THE COMMISSIONER ANNUALLY WITH THEIR LATEST A COUNTS AND THESE ARE TO BE AVAILABLE FOR PUBLIC INSPECTION.
THE BILL STIPULATES THAT REGISTERED COMPANIES WILL NOT BE ALLOWED TO ACCEPT DEPOSITS SALLER THAN $50,000.
/THE BILL ALSO