N
J
FRIDAY, AUGUST 5, 1983
A GOVERNMENT SPOKESMAN EXPLAINED THAT SOME OF THESE AMENDMENTS FLOWED FROM THE EXPERIENCE GAINED IN DEALING WITH THE SMALL NUMBER OF DEPOSIT-TAKING COMPANIES WHICH FAILED AROUND THE TURN OF THE YEAR, WHILE THE OPPORTUNITY WAS ALSO BEING TAKEN TO PROPOSE SOME OTHER MINOR CHANGES.
+THEIR OVERALL THRUST IS TO PRODUCE AN IMPROVED AND SOMEWHAT TOUGHER REGULATORY ENVIRONMENT FOR REGISTERED DTCS, WITH SOME ASSOCIATED CHANGES FOR LICENSED DTCS AND, TO A LESSER EXTENT, BANKS, HE SAID.
THE SPOKESMAN NOTED THAT THE FINANCIAL SECRETARY HAD SAID IN HIS BUDGET SPEECH THIS YEAR THAT HE WOULD BE ENGAGING IN DISCUSSIONS TO ENSURE THAT LEGISLATION CONTINUED TO PROVIDE AN APPROPRIATE DEGREE OF PROTECTION TO DEPOSITORS AND INVESTORS.
+SO FAR AS THE TWO ORDINANCES ARE CONCERNED, A REVIEW HAS NOW BEEN CARRIED OUT: THE BANKING ADVISORY COMMITTEE, THE DEPOSIT- TAKING COMPANIES ADVISORY COMMITTEE AND THE EXECUTIVE COUNCIL HAVE BEEN CONSULTED, HE SAID.
THE AMENDMENT BILLS WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON WEDNESDAY (AUGUST 10) AND THE DEBATE ON THEIR SECOND READING WILL BE RESUMED IN THE NEXT SESSION, PROBABLY IN OCTOBER.
THE MAIN CHANGES PROPOSED FOR THE DTC ORDINANCE ARE: (A) REVOCATION AND SUSPENSION
MORE EXTENSIVE POWERS ARE PROVIDED TO REVOKE OR SUSPEND
A DTC LICENCE OR REGISTRATION, INCLUDING:
(1) SOMEWHAT BROADER GROUNDS FOR REVOCATION;
(11) A NEW POWER FOR THE FINANCIAL SECRETARY TO SUSPEND
A DTC LICENCE (AT PRESENT ONLY REGISTRATIONS CAN BE SUSPENDED, BY THE COMMISSIONER OF DEPOSIT-TAKING
COMPANIES);
(111) PROVISION THAT ALL CIRCUMSTANCES WHICH ARE GROUNDS
FOR REVOCATION OF A LICENCE OR REGISTRATION SHALL ALSO BE GROUNDS FOR SUSPENSION (AT PRESENT SOME ARE
NOT);
(IV) MORE DETAILED PROVISIONS REGARDING SUSPENSION,
INCLUDING THAT A SUSPENSION MAY BE IMPOSED, IN URGENT CIRCUMSTANCES, FOR UP TO 14 DAYS WHETHER OR NOT THE COMPANY HAS HAD AN OPPORTUNITY TO BE HEARD, AND FOR UP TO SIX MONTHS PROVIDED SUCH AN OPPORTUNITY HAS
BEEN GIVEN.
/(B) LIMITS